Organovo (ONVO) 10-Q 10 Aug 23 2023 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Jun. 30, 2023	Aug. 01, 2023
Cover [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Jun. 30, 2023
Document Fiscal Year Focus	2023
Document Fiscal Period Focus	Q1
Trading Symbol	ONVO
Entity Registrant Name	Organovo Holdings, Inc.
Entity Central Index Key	0001497253
Current Fiscal Year End Date	--03-31
Entity Filer Category	Non-accelerated Filer
Entity Shell Company	false
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Common Stock, Shares Outstanding		8,718,203
Entity File Number	001-35996
Entity Current Reporting Status	Yes
Entity Tax Identification Number	27-1488943
Entity Address, Address Line One	11555 Sorrento Valley Rd
Entity Address, Address Line Two	Suite 100
Entity Address, City or Town	San Diego
Entity Address, State or Province	CA
Entity Address, Postal Zip Code	92121
City Area Code	858
Local Phone Number	224-1000
Entity Interactive Data Current	Yes
Title of 12(b) Security	Common Stock, $0.001 par value
Security Exchange Name	NASDAQ
Entity Incorporation, State or Country Code	DE
Document Quarterly Report	true
Document Transition Report	false

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Jun. 30, 2023	Mar. 31, 2023
Current Assets
Cash and cash equivalents	$ 10,754	$ 15,301
Accounts receivable	149	152
Investment in equity securities	0	706
Prepaid expenses and other current assets	792	889
Total current assets	11,695	17,048
Fixed assets, net	850	902
Restricted cash	143	143
Operating lease right-of-use assets	1,606	1,705
Prepaid expenses and other assets, net	462	515
Total assets	14,756	20,313
Current Liabilities
Accounts payable	488	331
Accrued expenses	787	2,848
Operating lease liability, current portion	495	492
Total current liabilities	1,770	3,671
Operating lease liability, net of current portion	1,210	1,313
Total liabilities	2,980	4,984
Stockholders’ Equity
Common stock, $0.001 par value; 200,000,000 shares authorized, 8,718,203 and 8,716,906 shares issued and outstanding at June 30, 2023 and March 31, 2023, respectively	9	9
Additional paid-in capital	340,792	340,317
Accumulated deficit	(329,026)	(324,998)
Accumulated other comprehensive income	2	2
Treasury stock, 46 shares at cost	(1)	(1)
Total stockholders’ equity	11,776	15,329
Total Liabilities and Stockholders’ Equity	$ 14,756	$ 20,313

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares	Jun. 30, 2023	Mar. 31, 2023
Statement of Financial Position [Abstract]
Common stock, par value	$ 0.001	$ 0.001
Common stock, shares authorized	200,000,000	200,000,000
Common stock, shares issued	8,718,203	8,716,906
Common stock, shares outstanding	8,718,203	8,716,906
Treasury stock, shares	46	46

Unaudited Condensed Consolidate

Unaudited Condensed Consolidated Statements of Operations and Other Comprehensive Loss - USD ($) $ in Thousands	3 Months Ended
	Jun. 30, 2023	Jun. 30, 2022
Revenues
Total Revenues	$ 75	$ 0
Revenue From Contract With Customer Product And Service [Extensible List]	us-gaap:RoyaltyMember	us-gaap:RoyaltyMember
Research and development expenses	$ 1,666	$ 1,020
Selling, general and administrative expenses	2,604	2,219
Total costs and expenses	4,270	3,239
Loss from Operations	(4,195)	(3,239)
Other Income (Expense)
Gain (loss) on investment in equity securities	12	(5)
Interest income	157	31
Total Other Income	169	26
Income Tax Expense	(2)	(2)
Net Loss	$ (4,028)	$ (3,215)
Net loss per common share basic	$ (0.46)	$ (0.37)
Net loss per common share diluted	$ (0.46)	$ (0.37)
Weighted average shares used in computing net loss per common share basic	8,717,232	8,710,968
Weighted average shares used in computing net loss per common share diluted	8,717,232	8,710,968
Comprehensive loss:
Net loss	$ (4,028)	$ (3,215)
Comprehensive loss	$ (4,028)	$ (3,215)

Unaudited Condensed Consolida_2

Unaudited Condensed Consolidated Statements of Stockholders' Equity - USD ($) shares in Thousands, $ in Thousands	Total	Common Stock [Member]	Additional Paid-in Capital [Member]	Treasury Stock [Member]	Accumulated Deficit [Member]	Accumulated Other Comprehensive Income [Member]
Beginning balance at Mar. 31, 2022	$ 30,209	$ 9	$ 337,940	$ (1)	$ (307,739)	$ 0
Beginning balance, Shares at Mar. 31, 2022		8,711		0
Issuance of common stock under employee and director stock option, RSU, and purchase plans	0	$ 0	0	$ 0	0	0
Issuance of common stock under employee and director stock option, restricted stock units, and purchase plans, Shares		1
Stock-based compensation expense	660	$ 0	660	0	0	0
Net loss	(3,215)	0	0	0	(3,215)	0
Ending balance at Jun. 30, 2022	27,654	$ 9	338,600	$ (1)	(310,954)	0
Ending balance, Shares at Jun. 30, 2022		8,712		0
Beginning balance at Mar. 31, 2023	15,329	$ 9	340,317	$ (1)	(324,998)	2
Beginning balance, Shares at Mar. 31, 2023		8,717		0
Issuance of common stock under employee and director stock option, RSU, and purchase plans	0	$ 0	0	$ 0	0	0
Issuance of common stock under employee and director stock option, restricted stock units, and purchase plans, Shares		1
Stock-based compensation expense	475	$ 0	475	0	0	0
Net loss	(4,028)	0	0	0	(4,028)	0
Ending balance at Jun. 30, 2023	$ 11,776	$ 9	$ 340,792	$ (1)	$ (329,026)	$ 2
Ending balance, Shares at Jun. 30, 2023		8,718		0

Unaudited Condensed Consolida_3

Unaudited Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	3 Months Ended
	Jun. 30, 2023	Jun. 30, 2022
Cash Flows From Operating Activities
Net loss	$ (4,028)	$ (3,215)
Adjustments to reconcile net loss to net cash used in operating activities:
(Gain) loss on investment in equity securities	(12)	5
Accretion on investments	(60)	(10)
Depreciation and amortization	67	50
Stock-based compensation	475	660
Increase (decrease) in cash resulting from changes in:
Accounts receivable	3	0
Prepaid expenses and other assets	149	194
Accounts payable	157	(285)
Accrued expenses	(2,061)	181
Operating lease right-of-use assets and liabilities, net	(1)	6
Net cash used in operating activities	(5,311)	(2,414)
Cash Flows From Investing Activities
Purchases of fixed assets	(15)	(74)
Purchases of investments	(4,939)	(9,891)
Maturities of investments	5,000	0
Purchases of equity securities	0	(728)
Liquidation of equity securities	718	0
Net cash provided by (used in) investing activities	764	(10,693)
Cash Flows From Financing Activities
Net cash provided by financing activities	0	0
Net decrease in cash, cash equivalents, and restricted cash	(4,547)	(13,107)
Cash, cash equivalents, and restricted cash at beginning of period	15,444	28,818
Cash, cash equivalents, and restricted cash at end of period	10,897	15,711
Reconciliation of cash, cash equivalents, and restricted cash to the condensed consolidated balance sheets
Cash and cash equivalents	10,754	15,568
Restricted cash	143	143
Cash, cash equivalents, and restricted cash at end of period	10,897	15,711
Supplemental Disclosure of Cash Flow Information:
Income taxes paid	$ 2	$ 2

Description of Business

Description of Business	3 Months Ended
	Jun. 30, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Description of Business	Note 1. Description of Business Nature of Operations Organovo Holdings, Inc. (“Organovo Holdings,” “Organovo,” and the “Company”) is a biotechnology company that focuses on building high fidelity, 3D tissues that recapitulate key aspects of human disease. The Company uses these models to identify gene targets responsible for driving the disease and intends to initiate drug discovery programs around these validated targets. The Company is initially focusing on the intestine and has ongoing 3D tissue development efforts in ulcerative colitis (“UC”) and Crohn’s disease (“CD”). The Company intends to add additional tissues/diseases/targets to its portfolio over time. In line with these plans, the Company is building upon both its external and in house scientific expertise, which will be essential to its drug development effort. The Company uses its proprietary technology to build functional 3D human tissues that mimic key aspects of native human tissue composition, architecture, function and disease. Organovo’s advances include cell type-specific compartments, prevalent intercellular tight junctions, and the formation of microvascular structures. Management believes these attributes can enable critical complex, multicellular disease models that can be used to develop clinically effective drugs across multiple therapeutic areas. The Company’s NovoGen Bioprinters ® are automated devices that enable the fabrication of 3D living tissues comprised of mammalian cells. The Company believes that the use of its bioprinting platform as well as complementary 3D technologies will allow it to develop an understanding of disease biology that leads to validated novel drug targets and therapeutics to those targets to treat disease. The majority of the Company’s current focus is in inflammatory bowel disease ("IBD"), including CD and UC. The Company is creating high fidelity disease models, leveraging its prior work including the work found in its peer-reviewed publication on bioprinted intestinal tissues ( Madden et al. Bioprinted 3D Primary Human Intestinal Tissues Model Aspects of Native Physiology and ADME/Tox Functions. iScience. 2018 Apr 27;2:156-167. doi: 10.1016/j.isci.2018.03.015.) The Company’s current understanding of intestinal tissue models and IBD disease models leads it to believe that it can create models that provide greater insight into the biology of these diseases than are generally currently available. Using these disease models, the Company intends to identify and validate novel therapeutic targets. After finding therapeutic drug targets, the Company intends to focus on developing novel small molecule, antibody, or other therapeutic drug candidates to treat the disease, and advance these novel drug candidates towards an Investigational New Drug (“IND”) filing and potential future clinical trials. In March of 2023, the Company entered into and closed an asset purchase agreement with Metacrine, Inc to acquire their farnesoid X receptor ("FXR") program. FXR is a mediator of gastrointestinal (" GI") and liver diseases. FXR agonism has been tested in a variety of preclinical models of IBD. The acquired program contains two clinically tested compounds and over 2,000 discovery or preclinical compounds. The Company expects to broaden its work into additional therapeutic areas over time and is currently exploring specific tissues for development. In the Company’s work to identify the areas of interest, it evaluates areas that might be better served with 3D disease models than currently available models as well as the potential commercial opportunity. Except where specifically noted or the context otherwise requires, references to “Organovo Holdings”, “the Company”, and “Organovo” in these notes to the unaudited condensed consolidated financial statements refers to Organovo Holdings, Inc. and its wholly owned subsidiaries, Organovo, Inc., and Opal Merger Sub, Inc.

Summary of Significant Accounti

Summary of Significant Accounting Policies	3 Months Ended
	Jun. 30, 2023
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	Note 2. Summary of Significant Accounting Policies Basis of Presentation and Principles of Consolidation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information and the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not necessarily include all information and notes required by GAAP for complete financial statements. The condensed consolidated balance sheet at March 31, 2023 is derived from the Company’s audited consolidated balance sheet at that date. The unaudited condensed consolidated financial statements include the accounts of Organovo and its wholly owned subsidiaries. All material intercompany accounts and transactions have been eliminated in consolidation. In the opinion of management, the unaudited financial information for the interim periods presented reflects all adjustments, which are only normal and recurring, necessary for a fair statement of the Company’s financial position, results of operations, stockholders’ equity and cash flows. These unaudited condensed consolidated financial statements should be read in conjunction with the audited financial statements and notes included in the Company’s Annual Report on Form 10-K for the year ended March 31, 2023, as filed with the Securities and Exchange Commission (“SEC”). Operating results for any interim period are not necessarily indicative of the operating results for any other interim period or the Company’s full fiscal year ending March 31, 2024 (see “Note 1. Description of Business”). Liquidity and Going Concern The accompanying consolidated financial statements have been prepared on the basis that we are a going concern, which contemplates, among other things, the realization of assets and satisfaction of liabilities in the normal course of business. As of June 30, 2023, the Company had cash and cash equivalents of approximately $ 10.8 million, restricted cash of approximately $ 0.1 million and an accumulated deficit of approximately $ 329.0 million. The restricted cash was pledged as collateral for a letter of credit that the Company is required to maintain as a security deposit under the terms of the lease agreement for its facilities. The Company also had negative cash flows from operations of approximately $ 5.3 million during the three months ended June 30, 2023. Through June 30, 2023, the Company has financed its operations primarily through the sale of common stock through public and at-the-market (“ATM”) offerings, the private placement of equity securities, from revenue derived from the licensing of intellectual property, products and research service-based services, grants, and collaborative research agreements, and from the sale of convertible notes. During the three months ended June 30, 2023, the Company issued zero shares of its common stock through its ATM facility. Based on the Company's current operating plan and available cash resources, it will need substantial additional funding to support future operating activities. The Company has concluded that the prevailing conditions and ongoing liquidity risks faced by it raise substantial doubt about its ability to continue as a going concern for at least one year following the date these financial statements are issued. The accompanying consolidated financial statements do not include any adjustments that might be necessary should the Company be unable to continue as a going concern. As the Company continues its operations and is focusing its efforts on drug discovery and development, the Company will need to raise additional capital to implement this business plan. The Company cannot predict with certainty the exact amount or timing for any future capital raises. The Company will seek to raise additional capital through debt or equity financings, or through some other financing arrangement. However, the Company cannot be sure that additional financing will be available if and when needed, or that, if available, it can obtain financing on terms favorable to its stockholders. Any failure to obtain financing when required will have a material adverse effect on the Company’s business, operating results, and financial condition. Use of Estimates The preparation of the financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results could differ from those estimates. On an ongoing basis, management reviews these estimates and assumptions. Investments Investments consist of investments in debt securities and investments in equity securities. Investments in debt securities consist of investments in U.S. Treasury bills. As of June 30, 2023, all investments that have original maturities of three months or less are classified as cash equivalents on the Condensed Consolidated Balance Sheets. Prior to December 31, 2022, the Company classified certain investments as held-to-maturity. All investments previously classified as held-to-maturity matured prior to December 31, 2022. As of June 30, 2023 and March 31, 2023, all investments are classified as available-for-sale, as the sale of such investments may be required prior to maturity to implement management strategies. Available-for-sale debt securities are recorded at fair value. Any unrealized gains and losses are included in accumulated other comprehensive income as a component of stockholders' equity until realized. As U.S. Treasury bills have minimal risk, any declines in fair value are considered temporary. Investments in equity securities consist of investments in the common stock of entities traded in active markets. The Company does not have the ability to exercise significant influence over any entities. Therefore, initial investments are recorded at cost, and are remeasured at fair value as of the balance sheet date. Any gains or losses resulting from the change in fair value are recorded in net income. The investments in equity securities are classified as current assets. Fair value measurement Financial assets and liabilities are measured at fair value, which is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs. The following is a fair value hierarchy based on three levels of inputs, of which the first two are considered observable and the last unobservable, that may be used to measure fair value: • Level 1 — Quoted prices in active markets for identical assets or liabilities. • Level 2 — Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. • Level 3 — Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. Net Loss Per Share Basic and diluted net loss per share has been computed using the weighted-average number of shares of common stock outstanding during the period. The weighted-average number of shares used to compute diluted loss per share excludes any assumed exercise of stock options, shares reserved for purchase under the Company’s 2016 Employee Stock Purchase Plan (“ESPP”), the assumed vesting of restricted stock units (“RSUs”), and shares subject to repurchase as the effect would be anti-dilutive. No dilutive effect was calculated for the three months ended June 30 , 2023 and 2022 as the Company reported a net loss for each respective period and the effect would have been anti-dilutive. Common stock equivalents excluded from computing diluted net loss per share due to their anti-dilutive effect were approximately 1.7 million at June 30 , 2023 and 2.0 million at June 30 , 2022. Revenue recognition The Company has generated revenues from payments received from licensing intellectual property. The Company has entered into a license agreement with a company that includes the following: (i) non-refundable upfront fees and (ii) royalties based on specified percentages of net product sales, if any. At the initiation of the agreement, the Company has analyzed whether it results in a contract with a customer under Topic 606. The Company has considered a variety of factors in determining the appropriate estimates and assumptions under these arrangements, such as whether the Company is a principal vs. agent, whether the elements are distinct performance obligations, whether there are determinable stand-alone prices, and whether any licenses are functional or symbolic. The Company has evaluated each performance obligation to determine if it can be satisfied and recognized as revenue at a point in time or over time. Typically, non-refundable upfront fees have been considered fixed, while sales-based royalty payments have been identified as variable consideration which must be evaluated to determine if it has been constrained and, therefore, excluded from the transaction price. Please refer to “Note 5: Collaborative Research, Development, and License Agreements” for further information. Recent Accounting Pronouncements From time to time, new accounting pronouncements are issued by the Financial Accounting Standards Board (“FASB”) or other standard setting bodies. Unless otherwise stated, the Company believes that the impact of the recently issued accounting pronouncements that are not yet effective will not have a material impact on its consolidated financial position or results of operations upon adoption.

Investments and Fair Value Meas

Investments and Fair Value Measurement	3 Months Ended
	Jun. 30, 2023
Investments, All Other Investments [Abstract]
Investments and Fair Value Measurement	Note 3. Investments and fair value measurement Investments in debt securities As of June 30, 2023, the Company held $ 5.0 million of investments in debt securities (which are included in the $ 10.8 million of cash and cash equivalents). For the three months ended June 30, 2023, there was $ 0.1 million of interest income related to the investments in debt securities. There were less than $ 0.1 million of unrealized gains recorded on investments in debt securities for the three months ended June 30, 2023. As the investments in debt securities consist of U.S. Treasury bills from active markets, the fair value is measured using level 1 inputs. The following table summarizes the Company's investments in debt securities that are measured at fair value as of June 30, 2023 (in thousands): Amortized costs basis Gross unrealized gains Gross unrealized losses Fair value As of March 31, 2023 Investment in debt securities $ 4,943 $ 2 $ — $ 4,945 As of June 30, 2023 Investment in debt securities $ 4,991 $ 2 $ — $ 4,993 Investments in equity securities For the three months ended June 30, 2023, there was $ 0.7 million of equity securities liquidated and less than a $ 0.1 million gain on the investment in equity securities. As of June 30, 2023, the fair value of investment in equity securities was zero , as a result of the liquidation of the shares by the underlying company during the three months ended June 30, 2023. As the investment in equity securities consist of common stock from active markets, the fair value is measured using level 1 inputs. The following table presents the activity for investments in equity securities measured at fair value for the three months ended June 30, 2023 (in thousands): Investment in Equity Securities Balance at March 31, 2023 $ 706 Purchases at cost — Liquidation of equity securities ( 718 ) Gain on investment in equity securities 12 Balance at June 30, 2023 $ —

Stockholders' Equity

Stockholders' Equity	3 Months Ended
	Jun. 30, 2023
Equity [Abstract]
Stockholders' Equity	Note 4. Stockholders’ Equity Preferred Stock The Company is authorized to issue 25,000,000 shares of preferred stock. There are no shares of preferred stock currently outstanding, and the Company has no current plans to issue shares of preferred stock. Common Stock In March 2021, the Company's Board of Directors ("Board") approved the 2021 Inducement Equity Incentive Plan ("Inducement Plan"). The Inducement Plan authorized the issuance of up to 750,000 shares of common stock for awards of incentive stock options, non-statutory stock options, stock appreciation rights, restricted stock, RSUs, performance units, performance shares, and other stock or cash awards. On October 12, 2022, the Company's stockholders and the Board approved the 2022 Equity Incentive Plan ("2022 Plan"), and it became effective on that date. The 2022 Plan replaced the Amended and Restated 2012 Equity Incentive Plan ("2012 Plan") on the effective date. Upon the effective date, the Company ceased granting awards under the 2012 Plan and any shares remaining available for future issuance under the 2012 Plan were cancelled and are no longer available for future issuance. The 2012 Plan continues to govern awards previously granted under it. At the time the Board approved the 2022 Plan, an aggregate of 1,363,000 shares of the Company’s common stock was initially reserved for issuance under the 2022 Plan. The Company committed to reducing the new 2022 Plan share reserve by the number of shares that were granted under the 2012 Plan and the Inducement Plan between July 25, 2022 and October 12, 2022. From July 25, 2022 to October 12, 2022, the Company issued 126,262 shares of its common stock under the 2012 Plan. As a result, the number of shares reserved for future issuance under the 2022 Plan is 1,236,738 shares of common stock. The Company also committed to reducing the aggregate number of shares of its common stock issuable pursuant to the Inducement Plan from 750,000 shares to 51,000 shares (which includes 50,000 shares of its common stock issuable pursuant to an outstanding option to purchase common stock with an exercise price of $ 2.75 per share, leaving only 1,000 shares available for future issuance under the Inducement Plan) and the share reserve was reduced effective October 12, 2022. The Company previously had an effective shelf registration statement on Form S-3 (File No. 333-222929) and the related prospectus previously declared effective by the SEC on February 22, 2018 (the “2018 Shelf”), which registered $ 100.0 million of common stock, preferred stock, warrants and units, or any combination of the foregoing, that was set to expire on February 22, 2021 . On January 19, 2021, the Company filed a shelf registration statement on Form S-3 (File No. 333-252224) to register $ 150.0 million of the Company’s common stock, preferred stock, debt securities, warrants and units, or any combination of the foregoing (the “2021 Shelf”) and a related prospectus. The 2021 Shelf was declared effective by the SEC on January 29, 2021 and replaced the 2018 Shelf at that time. On March 16, 2018, the Company entered into a Sales Agreement (“Sales Agreement”) with H.C. Wainwright & Co., LLC and Jones Trading Institutional Services LLC (each an “Agent” and together, the “Agents”). On January 29, 2021, the Company filed a prospectus supplement to the 2021 Shelf (the “ATM Prospectus Supplement”), pursuant to which the Company may offer and sell, from time to time through the Agents, shares of its common stock in ATM sales transactions having an aggregate offering price of up to $ 50.0 million. Any shares offered and sold will be issued pursuant to the 2021 Shelf. During the three months ended June 30 , 2023, the Company issued zero shares of common stock in ATM offerings under the ATM Prospectus Supplement. As of June 30 , 2023, the Company has sold an aggregate of 1,580,862 shares of common stock in ATM offerings under the ATM Prospectus Supplement, with gross proceeds of approximately $ 21.7 million. As of June 30 , 2023, there was approximately $ 100.0 million available for future offerings under the 2021 Shelf (excluding amounts available but not yet issued under the ATM Prospectus Supplement), and approximately $ 28.3 million available for future offerings through the Company’s ATM program under the ATM Prospectus Supplement. Restricted Stock Units The following table summarizes the Company’s RSUs activity for the three months ended June 30, 2023: Number of Weighted Unvested at March 31, 2023 127,717 $ 2.22 Granted — $ — Vested ( 1,325 ) $ 10.79 Cancelled / forfeited — $ — Unvested at June 30, 2023 126,392 $ 2.15 Stock Options During the three months ended June 30, 2023, under the 2022 Plan, 131,257 stock options were granted at various exercise prices. On October 7, 2021, the Company granted 30,000 and 7,500 stock options, respectively, to its Executive Chairman and its Chief Scientific Officer under the 2012 Plan. These stock options have unique vesting criteria based on specific Company performance conditions. The vesting criteria relates to the Company closing a seven-figure cash up front deal with a major pharmaceutical company. As of June 30, 2023, management estimated there was a 0 % probability of achievement, and therefore no expense has been recorded to date. The following table summarizes the Company’s stock option activity from March 31, 2023 to June 30, 2023: Options Weighted Aggregate Outstanding at March 31, 2023 1,451,217 $ 6.49 $ 38,327 Options granted 131,257 $ 1.81 $ — Options cancelled / forfeited — $ — $ — Options exercised — $ — $ — Outstanding at June 30, 2023 1,582,474 $ 6.10 $ 7,732 Vested and Exercisable at June 30, 2023 626,849 $ 6.95 $ 175 The weighted average remaining contractual term of stock options exercisable and outstanding at June 30, 2023 was approximately 7.77 years. Employee Stock Purchase Plan In June 2016, the Board adopted, and in August 2016, the Company’s stockholders subsequently approved, the Employee Stock Purchase Plan ("ESPP"). The Company reserved 75,000 shares of common stock for issuance thereunder. The ESPP permits employees after five months of service to purchase common stock through payroll deductions, limited to 15 percent of each employee’s compensation up to $ 25,000 per employee per year or 500 shares per employee per six-month purchase period. Shares under the ESPP are purchased at 85 percent of the fair market value at the lower of (i) the closing price on the first trading day of the six-month purchase period or (ii) the closing price on the last trading day of the six-month purchase period. The initial offering period commenced in September 2016 . At June 30, 2023, there were 58,426 shares available for purchase under the ESPP. Common Stock Reserved for Future Issuance Common stock reserved for future issuance consisted of the following at June 30, 2023: Common stock issuable pursuant to options outstanding and reserved under the 2012 Plan 1,345,664 Common stock reserved under the 2012 Plan — Common stock issuable pursuant to options outstanding and reserved under the 2022 Plan 186,810 Common stock reserved under the 2022 Plan 940,214 Common stock reserved under the ESPP 58,426 Common stock reserved under the 2021 Inducement Equity Plan 1,000 Common stock issuable pursuant to restricted stock units outstanding under the 2012 Plan 8,750 Common stock issuable pursuant to restricted stock units outstanding under the 2022 Plan 117,642 Common stock issuable pursuant to options outstanding and reserved under the Inducement Plan 50,000 Total at June 30, 2023 2,708,506 Stock-based Compensation Expense and Valuation Information Stock-based awards include stock options and RSUs under the 2022 Plan, 2012 Plan, Inducement Plan, and rights to purchase stock under the ESPP. The Company calculates the grant date fair value of all stock-based awards in determining the stock-based compensation expense. Stock-based compensation expense for all stock-based awards consists of the following (in thousands): Three Months Ended Three Months Ended June 30, 2023 June 30, 2022 Research and development $ 107 $ 121 General and administrative 368 539 Total $ 475 $ 660 The total unrecognized compensation cost related to unvested stock option grants as of June 30, 2023 was approximately $ 2.3 million and the weighted average period over which these grants are expected to vest is 2.03 years. The total unrecognized compensation cost related to unvested RSUs as of June 30, 2023 was approximately $ 0.1 million, which will be recognized over a weighted average period of 1.19 years. The Company uses either the Black-Scholes or Monte Carlo option-pricing models to calculate the fair value of stock options, depending on the complexity of the equity grants. Stock-based compensation expense is recognized over the vesting period using the straight-line method. The assumed dividend yield is based on the Company’s expectation of not paying dividends in the foreseeable future. The Company uses the Company-specific historical volatility rate as the indicator of expected volatility. The risk-free interest rate assumption is based on U.S. Treasury rates. The weighted average expected life of options was estimated using the average of the contractual term and the weighted average vesting term of the options. The measurement and classification of share-based payments to non-employees is consistent with the measurement and classification of share-based payments to employees. The fair value of stock options was estimated at the grant date using the following weighted average assumptions: Three Months Ended Three Months Ended June 30, 2023 June 30, 2022 Dividend yield — — Volatility 98.51 % 94.50 % Risk-free interest rate 3.95 % 2.97 % Expected life of options 6.00 years 6.00 years Weighted average grant $ 1.45 $ 2.25 The fair value of each RSU and performance-based RSU is recognized as stock-based compensation expense over the vesting term of the award. The fair value is based on the closing stock price on the date of the grant. The Company uses the Black-Scholes valuation model to calculate the fair value of shares issued pursuant to the ESPP. Stock-based compensation expense is recognized over the purchase period using the straight-line method. The assumed dividend yield is based on the Company’s expectation of not paying dividends in the foreseeable future. The Company uses the Company-specific historical volatility rate as the indicator of expected volatility. The risk-free interest rate assumption is based on U.S. Treasury rates. The expected life is the 6-month purchase period. There were no participants in the ESPP for the current purchase period (beginning March 1, 2023), nor any participants in the ESPP for the comparative period.

Collaborative Research, Develop

Collaborative Research, Development, and License Agreements	3 Months Ended
	Jun. 30, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Collaborative Research, Development, and License Agreements	Note 5. Collaborative Research, Development, and License Agreements License Agreements From June 2021 to February 2022, certain patents owned or sublicensed by the Company became the subject of IPR proceedings filed by Cellink AB and its subsidiaries (collectively, “BICO Group AB”). The Company and BICO Group AB were also engaged in litigation regarding patent infringement during the same time period. On February 22, 2022, the Company and BICO Group AB signed a settlement and patent license agreement (“License Agreement”) to close all matters noted above. In addition to closing all legal matters and patent disputes noted above, as part of the agreement, the Company agreed to grant a non-exclusive license to BICO Group AB to use the Company’s aforementioned patents for its business operations of manufacturing and selling bioprinters as well as bioinks. The Company concluded that the nature of the license granted represents functional intellectual property. As part of the License Agreement, BICO Group AB agreed to pay the Company ongoing sales-based royalties (based on percentages of BICO Group AB’s net sales) for the use of the granted license. The sales-based royalties became effective beginning on February 22, 2022, the effective date of the License Agreement, and continue until the expiration of the last surviving licensed patent. As the sales-based royalties are required to be paid 45 days after the end of every quarter, there is variable consideration that must be estimated to determine royalty revenue within a given reporting period. For the three months ended June 30 , 2023, the Company recorded $ 75,000 of royalty revenue based on sales-based royalties from the License Agreement. This recognized revenue is related to sales-based royalties earned from April 1, 2023 through June 30, 2023. Also as part of the License Agreement, certain patents involved in the agreement are sublicensed by the Company from the University of Missouri and Clemson University. See below for further information. University of Missouri In March 2009, the Company entered into a license agreement with the Curators of the University of Missouri to in-license certain technology and intellectual property relating to self-assembling cell aggregates and to intermediate cellular units. The Company received the exclusive worldwide rights to commercialize products comprising this technology for all fields of use. The Company is required to pay the University of Missouri royalties ranging from 1 % to 3 % of net sales of covered tissue products, and of the fair market value of covered tissues transferred internally for use in the Company’s commercial service business, depending on the level of net sales achieved by the Company each year. The license agreement with the University of Missouri also includes an additional sales royalty of 3 % of all revenue received from a sublicensee, when such sublicense is entered pursuant to settlement of litigation. Such revenue shall include, but not be limited to, all option fees, license issue fees (up-front payments), license maintenance fees, equity, and all royalty payments. Such revenue shall not include research funding provided to licensee by sublicensee. However, per the agreement, in the event that the Company defends the technology by litigation, it can offset any royalties due by legal expenses incurred. As of June 30 , 2023, the Company’s legal expenses exceeded royalties owed from the upfront payment and sales-based royalties related to the License Agreement. Therefore, no royalty expense to the University of Missouri was recorded for the three months ended June 30, 2023. No royalty expense related to sales-based royalties has been recorded to date. On December 5, 2022, the Company amended the license agreement with the University of Missouri, whereas the Company agreed to pay a single, up-front payment of $ 50,000 to the University of Missouri in exchange for the aforementioned licensed intellectual property to be fully paid up by the Company. As a result, the Company will continue to have rights to the licensed intellectual property until its expiration, but will no longer owe minimum annual royalty payments, royalty payments based on net sales, or any other payments (other than patent annuities and any prosecution costs) in the future. Clemson University In May 2011, the Company entered into a license agreement with Clemson University Research Foundation to in-license certain technology and intellectual property relating to ink-jet printing of viable cells. The Company received the exclusive worldwide rights to commercialize products comprising this technology for all fields of use. The Company is required to pay the university royalties ranging from 1.5 % to 3 % of net sales of covered tissue products and the fair market value of covered tissues transferred internally for use in the Company’s commercial service business, depending on the level of net sales reached each year. The license agreement terminates upon expiration of the patents licensed, which are expected to expire in May 2024 , and is subject to certain conditions as defined in the license agreement. Minimum annual royalty payments of $ 20,000 were due for each of the two years beginning with calendar 2014, and $ 40,000 per year beginning with calendar 2016. Royalty payments of $ 40,000 were made in each of the years ended March 31, 2023 and 2022. The annual minimum royalty is creditable against royalties owed during the same calendar year. In addition to the annual royalties noted above, the University is owed 40 % of all payments including but not limited to, upfront payments, license fees, issue fees, maintenance fees, and milestone payments received from third parties, including sublicensees, in consideration for sublicensing rights to licensed products. However, per the agreement, in the event that the Company defends the technology by litigation, it can offset any royalties due by legal expenses incurred. As of June 30, 2023, the Company’s legal expenses exceeded royalties owed from the upfront payment and sales-based royalties related to the License Agreement. Therefore, no royalty expense to Clemson University was recorded for the three months ended June 30, 2023. No royalty expense related to sales-based royalties has been recorded to date.

Commitments and Contingencies

Commitments and Contingencies	3 Months Ended
	Jun. 30, 2023
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Note 6. Commitments and Contingencies Legal Matters In addition to commitments and obligations in the ordinary course of business, the Company may be subject, from time to time, to various claims and pending and potential legal actions arising out of the normal conduct of its business. The Company assesses contingencies to determine the degree of probability and range of possible loss for potential accrual in its financial statements. Because litigation is inherently unpredictable and unfavorable resolutions could occur, assessing litigation contingencies is subjective and requires judgments about future events. When evaluating contingencies, the Company may be unable to provide a meaningful estimate due to a number of factors, including the procedural status of the matter in question, the presence of complex or novel legal theories, and/or the ongoing discovery and development of information important to the matters. In addition, damage amounts claimed in litigation against it may be unsupported, exaggerated or unrelated to possible outcomes, and as such are not meaningful indicators of its potential liability. The Company regularly reviews contingencies to determine the adequacy of its accruals and related disclosures. During the period presented, the Company has not recorded any accrual for loss contingencies associated with any claims or legal proceedings; determined that an unfavorable outcome is probable or reasonably possible; or determined that the amount or range of any possible loss is reasonably estimable. However, the outcome of legal proceedings and claims brought against the Company is subject to significant uncertainty. Therefore, although management considers the likelihood of such an outcome to be remote, if one or more legal matters were resolved against the Company in a reporting period, the Company’s consolidated financial statements for that reporting period could be materially adversely affected.

Leases

Leases	3 Months Ended
	Jun. 30, 2023
Leases [Abstract]
Leases	Note 7. Leases After the initial adoption of Accounting Standards Codification Topic 842 (“ASC 842”), on an on-going basis, the Company evaluates all contracts upon inception and determines whether the contract contains a lease by assessing whether there is an identified asset and whether the contract conveys the right to control the use of the identified asset in exchange for consideration over a period of time. If a lease is identified, the Company will apply the guidance from ASC 842 to properly account for the lease. Operating Leases On November 23, 2020, the Company entered into a lease agreement, pursuant to which the Company permanently leased approximately 8,051 square feet of lab and office space (the “Permanent Lease”) in San Diego once certain tenant improvements were completed by the landlord and the premises were ready for occupancy. Additionally, on November 17, 2021, the Permanent Lease was amended to add an additional 2,892 square feet of office space in the same building. The Permanent Lease commenced on December 17, 2021 and is intended to serve as the Company’s permanent premises for approximately sixty-two months . Monthly rental payments will be approximately $ 40,800 with 3 % annual escalators. The Company determined that the Permanent Lease is considered an operating lease under ASC 842, and therefore upon the lease commencement date of December 17, 2021, recognized lease liabilities and corresponding right-of-use assets of $ 2.3 million. The Company records operating lease expense on a straight-line basis over the life of the lease (referred to as “operating lease expense”). Variable lease expenses associated with the Company’s leases, such as payments for additional monthly fees to cover the Company’s share of certain facility expenses (common area maintenance, or CAM) are expensed as incurred. The table below summarizes the Company’s lease liabilities and corresponding right-of-use assets as of June 30, 2023 (in thousands): June 30, 2023 ASSETS Operating lease right-of-use assets $ 1,606 Total lease right-of-use assets $ 1,606 LIABILITIES Current Operating lease liability $ 495 Noncurrent Operating lease liability, net of current portion $ 1,210 Total lease liabilities $ 1,705 Weighted average remaining lease term: 3.58 years Weighted average discount rate: 6 % Variable lease expense was approximately $ 36,000 and $ 41,000 for the three months ended June 30, 2023 and 2022, respectively. Operating lease expense was approximately $ 126,000 and $ 129,000 for the three months ended June 30, 2023 and 2022, respectively. Cash flows associated with the Company’s operating lease for the three months ended June 30, 2023 and 2022 was approximately $ 126,000 and $ 122,000 , respectively. Future lease payments relating to the Company’s operating lease liabilities as of June 30, 2023, are as follows (in thousands): Fiscal year ending March 31, 2024 $ 382 Fiscal year ending March 31, 2025 523 Fiscal year ending March 31, 2026 538 Fiscal year ending March 31, 2027 460 Total future lease payments 1,903 Less: Imputed interest ( 198 ) Total lease obligations 1,705 Less: Current obligations ( 495 ) Noncurrent lease obligations $ 1,210

Concentrations

Concentrations	3 Months Ended
	Jun. 30, 2023
Risks and Uncertainties [Abstract]
Concentrations	Note 8. Concentrations Credit Risk and significant customers Financial instruments that potentially subject the Company to concentrations of credit risk consist principally of temporary cash investments. The Company maintains cash balances at various financial institutions located within the United States. Accounts at these institutions are secured by the Federal Deposit Insurance Corporation. Balances may exceed federally insured limits. The Company is also potentially subject to concentrations of credit risk in its revenues and accounts receivable. However, the Company only receives royalty revenue from one licensee and has not historically experienced any accounts receivable write-downs.

Related Parties

Related Parties	3 Months Ended
	Jun. 30, 2023
Related Party Transactions [Abstract]
Related Parties	Note 9. Related Parties From time to time, the Company will enter into an agreement with a related party in the ordinary course of its business. These agreements are ratified by the Board or a committee thereof pursuant to its related party transaction policy. Viscient Biosciences (“Viscient”) is an entity for which Keith Murphy, the Company’s Executive Chairman, serves as the Chief Executive Officer and President. Dr. Jeffrey Miner, the Company’s Chief Scientific Officer, is also the Chief Scientific Officer of Viscient, and Thomas Jurgensen, the Company’s General Counsel, previously served as outside legal counsel to Viscient through his law firm, Optima Law Group, APC. On December 28, 2020, the Company entered into an intercompany agreement (the “Intercompany Agreement”) with Viscient and Organovo, Inc., the Company’s wholly-owned subsidiary, which included an asset purchase agreement for certain lab equipment. Pursuant to the Intercompany Agreement, the Company agreed to provide Viscient certain services related to 3D bioprinting technology, which includes, but is not limited to, histology services, cell isolation, and proliferation of cells and Viscient agreed to provide the Company certain services related to 3D bioprinting technology, including bioprinter training, bioprinting services, and qPCR assays, in each case on payment terms specified in the Intercompany Agreement and as may be further determined by the parties. In addition, the Company and Viscient each agreed to share certain facilities and equipment and, subject to further agreement, to each make certain employees available for specified projects for the other party at prices to be determined in good faith by the parties. The Company evaluated the accounting for the Intercompany Agreement and concluded that any services provided by Viscient to the Company will be expensed as incurred, and any compensation for services provided by the Company to Viscient will be considered a reduction of personnel related expenses. Any services provided to Viscient do not fall under Topic 606 as the Intercompany Agreement is not a contract with a customer. For the three months ended June 30 , 2023 and 2022, the Company incurred no consulting expenses from Viscient. Additionally, for the three months ended June 30 , 2023 and 2022, the Company provided approximately $ 10,000 and $ 11,000 of histology services to Viscient, respectively.

Summary of Significant Accoun_2

Summary of Significant Accounting Policies (Policies)	3 Months Ended
	Jun. 30, 2023
Accounting Policies [Abstract]
Basis of Presentation and Principles of Consolidation	Basis of Presentation and Principles of Consolidation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information and the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not necessarily include all information and notes required by GAAP for complete financial statements. The condensed consolidated balance sheet at March 31, 2023 is derived from the Company’s audited consolidated balance sheet at that date. The unaudited condensed consolidated financial statements include the accounts of Organovo and its wholly owned subsidiaries. All material intercompany accounts and transactions have been eliminated in consolidation. In the opinion of management, the unaudited financial information for the interim periods presented reflects all adjustments, which are only normal and recurring, necessary for a fair statement of the Company’s financial position, results of operations, stockholders’ equity and cash flows. These unaudited condensed consolidated financial statements should be read in conjunction with the audited financial statements and notes included in the Company’s Annual Report on Form 10-K for the year ended March 31, 2023, as filed with the Securities and Exchange Commission (“SEC”). Operating results for any interim period are not necessarily indicative of the operating results for any other interim period or the Company’s full fiscal year ending March 31, 2024 (see “Note 1. Description of Business”).
Liquidity and Going Concern	Liquidity and Going Concern The accompanying consolidated financial statements have been prepared on the basis that we are a going concern, which contemplates, among other things, the realization of assets and satisfaction of liabilities in the normal course of business. As of June 30, 2023, the Company had cash and cash equivalents of approximately $ 10.8 million, restricted cash of approximately $ 0.1 million and an accumulated deficit of approximately $ 329.0 million. The restricted cash was pledged as collateral for a letter of credit that the Company is required to maintain as a security deposit under the terms of the lease agreement for its facilities. The Company also had negative cash flows from operations of approximately $ 5.3 million during the three months ended June 30, 2023. Through June 30, 2023, the Company has financed its operations primarily through the sale of common stock through public and at-the-market (“ATM”) offerings, the private placement of equity securities, from revenue derived from the licensing of intellectual property, products and research service-based services, grants, and collaborative research agreements, and from the sale of convertible notes. During the three months ended June 30, 2023, the Company issued zero shares of its common stock through its ATM facility. Based on the Company's current operating plan and available cash resources, it will need substantial additional funding to support future operating activities. The Company has concluded that the prevailing conditions and ongoing liquidity risks faced by it raise substantial doubt about its ability to continue as a going concern for at least one year following the date these financial statements are issued. The accompanying consolidated financial statements do not include any adjustments that might be necessary should the Company be unable to continue as a going concern. As the Company continues its operations and is focusing its efforts on drug discovery and development, the Company will need to raise additional capital to implement this business plan. The Company cannot predict with certainty the exact amount or timing for any future capital raises. The Company will seek to raise additional capital through debt or equity financings, or through some other financing arrangement. However, the Company cannot be sure that additional financing will be available if and when needed, or that, if available, it can obtain financing on terms favorable to its stockholders. Any failure to obtain financing when required will have a material adverse effect on the Company’s business, operating results, and financial condition.
Use of Estimates	Use of Estimates The preparation of the financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results could differ from those estimates. On an ongoing basis, management reviews these estimates and assumptions.
Investments	Investments Investments consist of investments in debt securities and investments in equity securities. Investments in debt securities consist of investments in U.S. Treasury bills. As of June 30, 2023, all investments that have original maturities of three months or less are classified as cash equivalents on the Condensed Consolidated Balance Sheets. Prior to December 31, 2022, the Company classified certain investments as held-to-maturity. All investments previously classified as held-to-maturity matured prior to December 31, 2022. As of June 30, 2023 and March 31, 2023, all investments are classified as available-for-sale, as the sale of such investments may be required prior to maturity to implement management strategies. Available-for-sale debt securities are recorded at fair value. Any unrealized gains and losses are included in accumulated other comprehensive income as a component of stockholders' equity until realized. As U.S. Treasury bills have minimal risk, any declines in fair value are considered temporary. Investments in equity securities consist of investments in the common stock of entities traded in active markets. The Company does not have the ability to exercise significant influence over any entities. Therefore, initial investments are recorded at cost, and are remeasured at fair value as of the balance sheet date. Any gains or losses resulting from the change in fair value are recorded in net income. The investments in equity securities are classified as current assets.
Fair value measurement	Fair value measurement Financial assets and liabilities are measured at fair value, which is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs. The following is a fair value hierarchy based on three levels of inputs, of which the first two are considered observable and the last unobservable, that may be used to measure fair value: • Level 1 — Quoted prices in active markets for identical assets or liabilities. • Level 2 — Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. • Level 3 — Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities.
Net Loss Per Share	Net Loss Per Share Basic and diluted net loss per share has been computed using the weighted-average number of shares of common stock outstanding during the period. The weighted-average number of shares used to compute diluted loss per share excludes any assumed exercise of stock options, shares reserved for purchase under the Company’s 2016 Employee Stock Purchase Plan (“ESPP”), the assumed vesting of restricted stock units (“RSUs”), and shares subject to repurchase as the effect would be anti-dilutive. No dilutive effect was calculated for the three months ended June 30 , 2023 and 2022 as the Company reported a net loss for each respective period and the effect would have been anti-dilutive. Common stock equivalents excluded from computing diluted net loss per share due to their anti-dilutive effect were approximately 1.7 million at June 30 , 2023 and 2.0 million at June 30 , 2022.
Revenue recognition	Revenue recognition The Company has generated revenues from payments received from licensing intellectual property. The Company has entered into a license agreement with a company that includes the following: (i) non-refundable upfront fees and (ii) royalties based on specified percentages of net product sales, if any. At the initiation of the agreement, the Company has analyzed whether it results in a contract with a customer under Topic 606. The Company has considered a variety of factors in determining the appropriate estimates and assumptions under these arrangements, such as whether the Company is a principal vs. agent, whether the elements are distinct performance obligations, whether there are determinable stand-alone prices, and whether any licenses are functional or symbolic. The Company has evaluated each performance obligation to determine if it can be satisfied and recognized as revenue at a point in time or over time. Typically, non-refundable upfront fees have been considered fixed, while sales-based royalty payments have been identified as variable consideration which must be evaluated to determine if it has been constrained and, therefore, excluded from the transaction price. Please refer to “Note 5: Collaborative Research, Development, and License Agreements” for further information.
Recent Accounting Pronouncements	Recent Accounting Pronouncements From time to time, new accounting pronouncements are issued by the Financial Accounting Standards Board (“FASB”) or other standard setting bodies. Unless otherwise stated, the Company believes that the impact of the recently issued accounting pronouncements that are not yet effective will not have a material impact on its consolidated financial position or results of operations upon adoption.

Summary of Significant Accoun_3

Summary of Significant Accounting Policies (Tables)	3 Months Ended
	Jun. 30, 2023
Accounting Policies [Abstract]
Summary of Investments that are Measured at Fair Value	The following table summarizes the Company's investments in debt securities that are measured at fair value as of June 30, 2023 (in thousands): Amortized costs basis Gross unrealized gains Gross unrealized losses Fair value As of March 31, 2023 Investment in debt securities $ 4,943 $ 2 $ — $ 4,945 As of June 30, 2023 Investment in debt securities $ 4,991 $ 2 $ — $ 4,993
Schedule of Activity for Investments in Equity Securities Measured at Fair Value	The following table presents the activity for investments in equity securities measured at fair value for the three months ended June 30, 2023 (in thousands): Investment in Equity Securities Balance at March 31, 2023 $ 706 Purchases at cost — Liquidation of equity securities ( 718 ) Gain on investment in equity securities 12 Balance at June 30, 2023 $ —

Investments and Fair Value Me_2

Investments and Fair Value Measurement (Tables)	3 Months Ended
	Jun. 30, 2023
Investments, All Other Investments [Abstract]
Summary of Investments that are Measured at Fair Value	The following table summarizes the Company's investments in debt securities that are measured at fair value as of June 30, 2023 (in thousands): Amortized costs basis Gross unrealized gains Gross unrealized losses Fair value As of March 31, 2023 Investment in debt securities $ 4,943 $ 2 $ — $ 4,945 As of June 30, 2023 Investment in debt securities $ 4,991 $ 2 $ — $ 4,993
Schedule of Activity for Investments in Equity Securities Measured at Fair Value	The following table presents the activity for investments in equity securities measured at fair value for the three months ended June 30, 2023 (in thousands): Investment in Equity Securities Balance at March 31, 2023 $ 706 Purchases at cost — Liquidation of equity securities ( 718 ) Gain on investment in equity securities 12 Balance at June 30, 2023 $ —

Stockholders' Equity (Tables)

Stockholders' Equity (Tables)	3 Months Ended
	Jun. 30, 2023
Class Of Stock [Line Items]
Summary of Stock Option Activity	The following table summarizes the Company’s stock option activity from March 31, 2023 to June 30, 2023: Options Weighted Aggregate Outstanding at March 31, 2023 1,451,217 $ 6.49 $ 38,327 Options granted 131,257 $ 1.81 $ — Options cancelled / forfeited — $ — $ — Options exercised — $ — $ — Outstanding at June 30, 2023 1,582,474 $ 6.10 $ 7,732 Vested and Exercisable at June 30, 2023 626,849 $ 6.95 $ 175
Common Stock Reserved for Future Issuance	Common stock reserved for future issuance consisted of the following at June 30, 2023: Common stock issuable pursuant to options outstanding and reserved under the 2012 Plan 1,345,664 Common stock reserved under the 2012 Plan — Common stock issuable pursuant to options outstanding and reserved under the 2022 Plan 186,810 Common stock reserved under the 2022 Plan 940,214 Common stock reserved under the ESPP 58,426 Common stock reserved under the 2021 Inducement Equity Plan 1,000 Common stock issuable pursuant to restricted stock units outstanding under the 2012 Plan 8,750 Common stock issuable pursuant to restricted stock units outstanding under the 2022 Plan 117,642 Common stock issuable pursuant to options outstanding and reserved under the Inducement Plan 50,000 Total at June 30, 2023 2,708,506
Schedule of Stock-based Compensation Expense	Stock-based compensation expense for all stock-based awards consists of the following (in thousands): Three Months Ended Three Months Ended June 30, 2023 June 30, 2022 Research and development $ 107 $ 121 General and administrative 368 539 Total $ 475 $ 660
Fair Value of Employee Stock Options	The fair value of stock options was estimated at the grant date using the following weighted average assumptions: Three Months Ended Three Months Ended June 30, 2023 June 30, 2022 Dividend yield — — Volatility 98.51 % 94.50 % Risk-free interest rate 3.95 % 2.97 % Expected life of options 6.00 years 6.00 years Weighted average grant $ 1.45 $ 2.25
Restricted stock units (RSUs) [Member]
Class Of Stock [Line Items]
Summary of Company's RSUs Activity	The following table summarizes the Company’s RSUs activity for the three months ended June 30, 2023: Number of Weighted Unvested at March 31, 2023 127,717 $ 2.22 Granted — $ — Vested ( 1,325 ) $ 10.79 Cancelled / forfeited — $ — Unvested at June 30, 2023 126,392 $ 2.15

Leases (Tables)

Leases (Tables)	3 Months Ended
	Jun. 30, 2023
Leases [Abstract]
Schedule of Lease Liabilities and Corresponding Right-of-use Assets	The table below summarizes the Company’s lease liabilities and corresponding right-of-use assets as of June 30, 2023 (in thousands): June 30, 2023 ASSETS Operating lease right-of-use assets $ 1,606 Total lease right-of-use assets $ 1,606 LIABILITIES Current Operating lease liability $ 495 Noncurrent Operating lease liability, net of current portion $ 1,210 Total lease liabilities $ 1,705 Weighted average remaining lease term: 3.58 years Weighted average discount rate: 6 %
Schedule of Future Lease Payments	Future lease payments relating to the Company’s operating lease liabilities as of June 30, 2023, are as follows (in thousands): Fiscal year ending March 31, 2024 $ 382 Fiscal year ending March 31, 2025 523 Fiscal year ending March 31, 2026 538 Fiscal year ending March 31, 2027 460 Total future lease payments 1,903 Less: Imputed interest ( 198 ) Total lease obligations 1,705 Less: Current obligations ( 495 ) Noncurrent lease obligations $ 1,210

Description of Business - Addit

Description of Business - Additional Information (Details) - Metacrine, Inc. [Member] - Metacrine's FXR Program [Member]	12 Months Ended
	Mar. 31, 2023 Compounds
Description Of Business And Summary Of Significant Accounting Policies [Line Items]
Number of clinically tested compounds	2
Number of discovery or preclinical compounds	2,000

Summary of Significant Accoun_4

Summary of Significant Accounting Policies - Additional Information (Detail) - USD ($)	3 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Mar. 31, 2023
Summary Of Significant Accounting Policies [Line Items]
Cash and cash equivalents	$ 10,754,000	$ 15,568,000	$ 15,301,000
Restricted cash	143,000	143,000	143,000
Accumulated deficit	(329,026,000)		$ (324,998,000)
Cash flow from operations	$ 5,311,000	2,414,000
Issuance of common stock	8,718,203		8,716,906
Dilutive effect	$ 0	$ 0
Common stock equivalents excluded from computing diluted net loss per share	1,700,000	2,000,000
At-The-Market Facility [Member]
Summary Of Significant Accounting Policies [Line Items]
Issuance of common stock	0

Investments and Fair Value Me_3

Investments and Fair Value Measurement - Additional Information (Detail) - USD ($)	3 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Mar. 31, 2023
Investments [Line Items]
Investments	$ 5,000,000
Cash and cash equivalents	10,754,000	$ 15,568,000	$ 15,301,000
Purchase of equity securities	0	728,000
Sale of equity securities	718,000	0
Fair value of investment in equity securities	0
Interest income on investments in debt securities	100,000
Gain (loss) on investment in equity securities	12,000	$ (5,000)
Liquidation of equity securities	700,000
Maximum [Member]
Investments [Line Items]
Unrealized gains on short-term investments	100,000
Gain (loss) on investment in equity securities	$ 100,000

Investments and Fair Value Me_4

Investments and Fair Value Measurement - Summary of Investments in Debt Securities that are Measured at Fair Value (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Mar. 31, 2023
Investments, All Other Investments [Abstract]
Investment in debt securities, Amortized costs basis	$ 4,991	$ 4,943
Investment in debt securities, Gross unrealized gains	2	2
Investment in debt securities, Gross unrealized losses	0	0
Investment in debt securities, Fair value	$ 4,993	$ 4,945

Investments and Fair Value Me_5

Investments and Fair Value Measurement - Schedule of Activity for Investments in Equity Securities Measured at Fair Value (Details) - USD ($) $ in Thousands	3 Months Ended
	Jun. 30, 2023	Jun. 30, 2022
Schedule Of Investments In Equity Securities Measured At Fair Value [Line Items]
Purchases at cost	$ 0	$ 728
Liquidation of equity securities	700
Gain (loss) on investment in equity securities	12	$ (5)
Level 1 [Member]
Schedule Of Investments In Equity Securities Measured At Fair Value [Line Items]
Balance at March 31, 2023	706
Purchases at cost	0
Liquidation of equity securities	(718)
Gain (loss) on investment in equity securities	12
Balance at June 30, 2023	$ 0

Stockholders' Equity - Preferre

Stockholders' Equity - Preferred Stock - Additional Information (Detail)	Jun. 30, 2023 shares
Equity [Abstract]
Preferred stock, shares authorized	25,000,000
Preferred stock, shares outstanding	0

Stockholders' Equity - Common S

Stockholders' Equity - Common Stock - Additional Information (Detail) - USD ($)	3 Months Ended
	Jun. 30, 2023	Oct. 12, 2022	Jul. 25, 2022	Mar. 31, 2021	Jan. 29, 2021	Jan. 19, 2021
Class Of Stock [Line Items]
Securities authorized for offer and sale, amount						$ 150,000,000
2021 Inducement Equity Plan [Member]
Class Of Stock [Line Items]
Common shares authorized to be issued				750,000
Equity Incentive Plan 2022 [Member]
Class Of Stock [Line Items]
Common shares authorized to be issued		1,363,000	750,000
Excercise price per share		$ 2.75
Equity Incentive Plan 2022 [Member] | Common Stock [Member]
Class Of Stock [Line Items]
Common shares authorized to be issued		50,000
Equity Incentive Plan 2012 [Member]
Class Of Stock [Line Items]
Common shares authorized to be issued		1,236,738
Common stock shares issued		126,262
2022 Inducement Equity Plan [Member]
Class Of Stock [Line Items]
Common shares authorized to be issued		1,000
Maximum [Member] | Equity Incentive Plan 2022 [Member] | Common Stock [Member]
Class Of Stock [Line Items]
Common shares authorized to be issued		51,000
2018 Sales Agreement [Member]
Class Of Stock [Line Items]
Equity sales agreement expiration date	Feb. 22, 2021
ATM Prospectus Supplement [Member]
Class Of Stock [Line Items]
Issuance of common stock from stock options exercises, net, Shares	1,580,862
Value of shares sold under equity distribution agreement	$ 21,700,000
2021 Shelf [Member]
Class Of Stock [Line Items]
Common stock value reserved for future issuance	100,000,000
IPO [Member]
Class Of Stock [Line Items]
Securities authorized for offer and sale, amount	100,000,000
At-The-Market Facility [Member] | ATM Prospectus Supplement [Member]
Class Of Stock [Line Items]
Common stock value reserved for future issuance	$ 28,300,000
Issuance of common stock from stock options exercises, net, Shares	0
At-The-Market Facility [Member] | ATM Prospectus Supplement [Member] | Maximum [Member]
Class Of Stock [Line Items]
Common stock value reserved for future issuance					$ 50,000,000

Stockholders' Equity - Summary

Stockholders' Equity - Summary of Company's RSUs Activity (Detail) - Restricted stock units (RSUs) [Member]	3 Months Ended
	Jun. 30, 2023 $ / shares shares
Class Of Stock [Line Items]
Beginning balance, Unvested, Number of Shares | shares	127,717
Granted, Number of Shares | shares	0
Vested, Number of Shares | shares	(1,325)
Canceled / forfeited, Number of Shares | shares	0
Ending balance, Unvested, Number of Shares | shares	126,392
Beginning balance, Unvested, Weighted Average Price | $ / shares	$ 2.22
Granted, Weighted Average Price | $ / shares	0
Vested, Weighted Average Price | $ / shares	10.79
Canceled / forfeited, Weighted Average Price | $ / shares	0
Ending balance, Unvested, Weighted Average Price | $ / shares	$ 2.15

Stockholders' Equity - Stock Op

Stockholders' Equity - Stock Options and Employee Stock Purchase Plan - Additional Information (Detail) - USD ($)		3 Months Ended
	Oct. 07, 2021	Jun. 30, 2023	Jun. 30, 2022
Class Of Stock [Line Items]
Vesting criteria probability of achievement percentage		0%
Expense recorded		$ 0
Weighted-average remaining contractual term of stock options exercisable		7 years 9 months 7 days
Weighted-average remaining contractual term of stock options outstanding		7 years 9 months 7 days
Number of common stock shares approved under ESPP		2,708,506
Expected term		6 years	6 years
2012 Plan [Member] | Executive Chairman [Member]
Class Of Stock [Line Items]
Stock options granted	30,000
2012 Plan [Member] | Chief Scientific Officer [Member]
Class Of Stock [Line Items]
Stock options granted	7,500
2016 Employee Stock Purchase Plan [Member]
Class Of Stock [Line Items]
Number of common stock shares approved under ESPP		75,000
Employee subscription rate		15%
Compensation amount per employee		$ 25,000
Number of shares per employee		500
Fair market value at discount		85%
Purchase period		6 months
Initial offering period		2016-09
Description of plan		Shares under the ESPP are purchased at 85 percent of the fair market value at the lower of (i) the closing price on the first trading day of the six-month purchase period or (ii) the closing price on the last trading day of the six-month purchase period.
Shares available for purchase under ESPP		58,426
Equity Incentive Plan 2022 [Member]
Class Of Stock [Line Items]
Stock options granted		131,257
Number of common stock shares approved under ESPP		940,214

Stockholders' Equity - Summar_2

Stockholders' Equity - Summary of Stock Option Activity (Detail)	3 Months Ended
	Jun. 30, 2023 USD ($) $ / shares shares
Share-Based Payment Arrangement [Abstract]
Options Outstanding, Beginning balance | shares	1,451,217
Granted, Options Outstanding | shares	131,257
Cancelled / forfeited, Options Outstanding | shares	0
Exercised, Options Outstanding | shares	0
Options Outstanding, Ending balance | shares	1,582,474
Vested and Exercisable, Options Outstanding | shares	626,849
Weighted-Average Exercise Price, Options Beginning balance | $ / shares	$ 6.49
Options granted, Weighted-Average Exercise Price | $ / shares	1.81
Options cancelled / forfeited, Weighted-Average Exercise Price | $ / shares	0
Options exercised, Weighted-Average Exercise Price | $ / shares	0
Weighted-Average Exercise Price, Options Ending balance | $ / shares	6.1
Vested and Exercisable, Weighted-Average Exercise Price | $ / shares	$ 6.95
Aggregate Intrinsic Value, Options Beginning balance | $	$ 38,327
Options Exercised, Aggregate Intrinsic Value | $	0
Aggregate Intrinsic Value, Options Ending balance | $	7,732
Vested and Exercisable, Aggregate Intrinsic Value | $	$ 175

Stockholders' Equity - Common_2

Stockholders' Equity - Common Stock Reserved for Future Issuance (Detail)	Jun. 30, 2023 shares
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Common stock reserved for future issuance	2,708,506
Equity Incentive Plan 2012 [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Common stock reserved for future issuance	0
Equity Incentive Plan 2022 [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Common stock reserved for future issuance	940,214
2016 Employee Stock Purchase Plan [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Common stock reserved for future issuance	75,000
Stock options [Member] | Equity Incentive Plan 2012 [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Common stock reserved for future issuance	1,345,664
Stock options [Member] | Equity Incentive Plan 2022 [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Common stock reserved for future issuance	186,810
Stock options [Member] | 2016 Employee Stock Purchase Plan [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Common stock reserved for future issuance	58,426
Stock options [Member] | 2021 Inducement Equity Plan [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Common stock reserved for future issuance	1,000
Stock options [Member] | Incentive Award Plan [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Common stock reserved for future issuance	50,000
Restricted stock units (RSUs) [Member] | Equity Incentive Plan 2012 [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Common stock reserved for future issuance	8,750
Restricted stock units (RSUs) [Member] | Equity Incentive Plan 2022 [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Common stock reserved for future issuance	117,642

Stockholders' Equity - Stock-ba

Stockholders' Equity - Stock-based Compensation Expense and Valuation Information - Additional Information (Detail) - USD ($) $ in Millions	3 Months Ended
	Jun. 30, 2023	Jun. 30, 2022
Class Of Stock [Line Items]
Total unrecognized compensation cost related to unvested stock option grants	$ 2.3
Expected term	6 years	6 years
Stock options [Member]
Class Of Stock [Line Items]
Total unrecognized compensation cost related, weighted average period	2 years 10 days
Restricted stock units (RSUs) [Member]
Class Of Stock [Line Items]
Total unrecognized compensation cost related, weighted average period	1 year 2 months 8 days
Unrecognized stock-based compensation expense	$ 0.1

Stockholders' Equity - Schedule

Stockholders' Equity - Schedule of Stock-based Compensation Expense (Detail) - USD ($) $ in Thousands	3 Months Ended
	Jun. 30, 2023	Jun. 30, 2022
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Total stock-based compensation expense	$ 475	$ 660
Research and development
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Total stock-based compensation expense	107	121
General and administrative
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Total stock-based compensation expense	$ 368	$ 539

Stockholders' Equity - Fair Val

Stockholders' Equity - Fair Value of Employee Stock Options (Detail) - $ / shares	3 Months Ended
	Jun. 30, 2023	Jun. 30, 2022
Share-Based Payment Arrangement [Abstract]
Dividend yield	0%	0%
Volatility	98.51%	94.50%
Risk-free interest rate	3.95%	2.97%
Expected life of options	6 years	6 years
Weighted average grant date fair value	$ 1.45	$ 2.25

Collaborative Research, Devel_2

Collaborative Research, Development, and License Agreements - Additional Information (Detail) - USD ($)		1 Months Ended		3 Months Ended		12 Months Ended
	Dec. 05, 2022	May 31, 2011	Mar. 31, 2009	Jun. 30, 2023	Jun. 30, 2022	Mar. 31, 2023	Mar. 31, 2022	Mar. 31, 2016	Mar. 31, 2015	Mar. 31, 2014
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items]
Total Revenues				$ 75,000	$ 0
BICO Group AB [Member]
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items]
Total Revenues				75,000
University of Missouri [Member]
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items]
Royalty fees percentage minimum			1%
Royalty fees percentage maximum			3%
Upfront payment	$ 50,000,000			$ 0
University of Missouri [Member] | Sublicense Agreements [Member]
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items]
Percentage of royalty revenue from sublicensee				3%
Clemson University [Member]
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items]
Minimum annual royalty paid						$ 40,000	$ 40,000
Upfront payment				$ 0
Minimum annual royalty payment due								$ 40,000	$ 20,000	$ 20,000
Clemson University [Member] | Sublicense Agreements [Member]
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items]
Percentage of royalty revenue from sublicensee				40%
Clemson University [Member] | Licensing Agreements [Member]
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items]
Royalty fees percentage minimum		1.50%
Royalty fees percentage maximum		3%
Expected expiration year of license agreement		2024-05

Leases - Additional Information

Leases - Additional Information (Details)			3 Months Ended
	Nov. 17, 2021 ft²	Nov. 23, 2020 USD ($) ft²	Jun. 30, 2023 USD ($)	Jun. 30, 2022 USD ($)	Mar. 31, 2023 USD ($)	Dec. 17, 2021 USD ($)
Operating Lease [Line Items]
Operating lease, liability			$ 1,705,000			$ 2,300,000
Operating lease right-of-use assets			1,606,000		$ 1,705,000	$ 2,300,000
Variable lease expense			36,000	$ 41,000
Operating Lease, Expense			126,000	129,000
Operating cash flows from operating leases			$ 126,000	$ 122,000
San Diego Permanent Lease [Member]
Operating Lease [Line Items]
Lab and Office space under lease agreement | ft²	2,892	8,051
Lease term		62 months
Monthly rental payments		$ 40,800
Base rent escalators		3%

Leases - Schedule of Lease Liab

Leases - Schedule of Lease Liabilities and Corresponding Right-of-use Assets (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Mar. 31, 2023	Dec. 17, 2021
Assets
Operating lease right-of-use assets	$ 1,606
Total lease right-of-use assets	1,606	$ 1,705	$ 2,300
Current Liabilities
Operating lease liability, current portion	495	492
Noncurrent
Operating lease liability, net of current portion	1,210	$ 1,313
Total lease liabilities	$ 1,705		$ 2,300
Weighted average remaining lease term:	3 years 6 months 29 days
Weighted average discount rate:	6%

Leases - Schedule of Future Lea

Leases - Schedule of Future Lease Payments (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Mar. 31, 2023	Dec. 17, 2021
Leases [Abstract]
Fiscal year ending March 31, 2024	$ 382
Fiscal year ending March 31, 2025	523
Fiscal year ending March 31, 2026	538
Fiscal year ending March 31, 2027	460
Total future lease payments	1,903
Less: Imputed interest	(198)
Total lease liabilities	1,705		$ 2,300
Less: Current obligations	(495)	$ (492)
Operating lease liability, net of current portion	$ 1,210	$ 1,313

Related Parties - Additional In

Related Parties - Additional Information (Detail) - Viscient [Member] - USD ($)	3 Months Ended
	Jun. 30, 2023	Jun. 30, 2022
Related Party Transaction [Line Items]
Consulting expenses	$ 0	$ 0
Histology services to related parties	$ 10,000	$ 11,000