Cover Page
Cover Page - shares | 6 Months Ended | |
Dec. 31, 2023 | Feb. 13, 2024 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Dec. 31, 2023 | |
Document Fiscal Year Focus | 2024 | |
Document Fiscal Period Focus | Q2 | |
Entity Registrant Name | Renalytix plc | |
Entity Central Index Key | 0001811115 | |
Current Fiscal Year End Date | --06-30 | |
Entity Tax Identification Number | 00-0000000 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Shell Company | false | |
Entity Small Business | true | |
Entity Emerging Growth Company | true | |
Entity Ex Transition Period | false | |
Entity Interactive Data Current | Yes | |
Entity Common Stock, Shares Outstanding | 99,930,156 | |
Entity Address, Address Line One | Finsgate5-7 Cranwood Street | |
Entity Address, City or Town | London | |
Entity Address, Postal Zip Code | EC1V 9EE | |
Entity Address, Country | GB | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Securities Act File Number | 001-39387 | |
No Trading Symbol Flag | true | |
Title of 12(b) Security | Ordinary shares, nominal value £0.0025 per share | |
Security Exchange Name | NASDAQ | |
Entity Incorporation, State or Country Code | X0 | |
City Area Code | 20 | |
Local Phone Number | 3139 2910 | |
American Depositary Shares [Member] | ||
Document Information [Line Items] | ||
Trading Symbol | RNLX | |
Title of 12(b) Security | American Depositary Shares, each representing two ordinary shares, nominal value £0.0025 per share | |
Security Exchange Name | NASDAQ |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2023 | Jun. 30, 2023 |
Current assets: | ||
Cash and cash equivalents | $ 5,619 | $ 24,682 |
Accounts receivable | 1,370 | 776 |
Prepaid expenses and other current assets | 1,261 | 1,424 |
Total current assets | 8,250 | 26,882 |
Property and equipment, net | 576 | 1,027 |
Right of Use Asset | 102 | 159 |
Investment in VericiDx | 1,220 | 1,460 |
Other Assets | 1,128 | 1,101 |
Total assets | 11,276 | 30,629 |
Current liabilities: | ||
Accrued expenses and other current liabilities | 4,259 | 6,644 |
Accrued expenses - related party | 3,673 | 1,963 |
Current lease liability | 111 | 130 |
Convertible notes-current | 3,063 | 4,463 |
Total current liabilities | 13,922 | 16,136 |
Convertible notes-noncurrent | 5,310 | 7,485 |
Noncurrent lease liability | 0 | 41 |
Total liabilities | 19,232 | 23,662 |
Commitments and contingencies (Note 10) | ||
Shareholders' equity: | ||
Ordinary shares, 0.0025 par value per share: 107,189,897 shares authorized; 99,930,156 and 93,781,478 shares issued and outstanding at December 31, 2023 and June 30, 2023, respectively | 305 | 286 |
Additional paid-in capital | 190,437 | 186,456 |
Accumulated other comprehensive loss | (1,734) | (1,450) |
Accumulated deficit | (196,964) | (178,325) |
Total shareholders' (deficit) equity | (7,956) | 6,967 |
Total liabilities and shareholders' (deficit) equity | 11,276 | 30,629 |
Related Party [Member] | ||
Current liabilities: | ||
Accounts payable | 707 | 1,451 |
Nonrelated Party [Member] | ||
Current liabilities: | ||
Accounts payable | $ 2,109 | $ 1,485 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - £ / shares | Dec. 31, 2023 | Jun. 30, 2023 |
Statement of Financial Position [Abstract] | ||
Common stock par or stated value per share | £ 0.0025 | £ 0.0025 |
Common stock shares authorized | 107,189,897 | 107,189,897 |
Common stock shares issued | 99,930,156 | 93,781,478 |
Common stock shares outstanding | 99,930,156 | 93,781,478 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | |
Income Statement [Abstract] | ||||
Revenue | $ 709 | $ 1,192 | $ 1,168 | $ 2,161 |
Cost of revenue | 480 | 711 | 982 | 1,407 |
Gross (loss) profit | 229 | 481 | 186 | 754 |
Operating expenses: | ||||
Research and development | 3,225 | 3,326 | 6,012 | 7,083 |
General and administrative | 5,339 | 6,810 | 11,398 | 15,060 |
Impairment loss on property and equipment | 306 | 0 | 306 | 0 |
Performance of contract liability to affiliate | 0 | (7) | 0 | (19) |
Total operating expenses | 8,870 | 10,129 | 17,716 | 22,124 |
Loss from operations | (8,641) | (9,648) | (17,530) | (21,370) |
Equity in net losses of affiliate | 0 | 0 | 0 | (9) |
Foreign currency (loss) gain, net | (89) | (108) | 200 | 699 |
Fair value adjustment to VericiDx investment | 202 | (345) | (245) | (1,199) |
Fair value adjustment to convertible notes | (114) | (440) | (1,321) | (730) |
Other income, net | 161 | 97 | 261 | 211 |
Net loss before income taxes | (8,481) | (10,444) | (18,635) | (22,398) |
Income tax (expense) benefit | (4) | 0 | (4) | 1 |
Net loss | $ (8,485) | $ (10,444) | $ (18,639) | $ (22,397) |
Earnings Per Share, Basic | $ (0.09) | $ (0.14) | $ (0.19) | $ (0.3) |
Earnings Per Share, Diluted | $ (0.09) | $ (0.14) | $ (0.19) | $ (0.3) |
Weighted Average Number of Shares Outstanding, Basic | 97,268,051 | 74,891,844 | 96,017,946 | 74,848,278 |
Weighted Average Number of Shares Outstanding, Diluted | 97,268,051 | 74,891,844 | 96,017,946 | 74,848,278 |
Other comprehensive income (loss): | ||||
Changes in the fair value of the convertible notes | $ 0 | $ (920) | $ 75 | $ (523) |
Foreign exchange translation adjustment | (401) | 588 | (359) | (499) |
Comprehensive loss | $ (8,886) | $ (10,776) | $ (18,923) | $ (23,419) |
CONSOLIDATED STATEMENTS OF SHAR
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (DEFICIT) (Unaudited) - USD ($) $ in Thousands | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Accumulated Deficit [Member] |
Beginning balance at Jun. 30, 2022 | $ 30,607 | $ 228 | $ 164,012 | $ (915) | $ (132,718) |
Beginning balance, Shares at Jun. 30, 2022 | 74,760,432 | ||||
Shares issued under the employee share purchase program (Value) | 116 | $ 1 | 115 | ||
Shares issued under the employee share purchase program (Shares) | 131,412 | ||||
Stock-based compensation expense | 763 | 763 | |||
Currency translation adjustments | (1,087) | (1,087) | |||
Changes in the fair value of the convertible notes at fair value through other comprehensive income | 397 | 397 | |||
Net loss | (11,953) | (11,953) | |||
Ending balance at Sep. 30, 2022 | 18,843 | $ 229 | 164,890 | (1,605) | (144,671) |
Ending balance, shares at Sep. 30, 2022 | 74,891,844 | ||||
Beginning balance at Jun. 30, 2022 | 30,607 | $ 228 | 164,012 | (915) | (132,718) |
Beginning balance, Shares at Jun. 30, 2022 | 74,760,432 | ||||
Net loss | (22,397) | ||||
Ending balance at Dec. 31, 2022 | 8,885 | $ 229 | 165,708 | (1,937) | (155,115) |
Ending balance, shares at Dec. 31, 2022 | 74,891,844 | ||||
Beginning balance at Sep. 30, 2022 | 18,843 | $ 229 | 164,890 | (1,605) | (144,671) |
Beginning balance, Shares at Sep. 30, 2022 | 74,891,844 | ||||
Stock-based compensation expense | 818 | 818 | |||
Currency translation adjustments | 588 | 588 | |||
Changes in the fair value of the convertible notes at fair value through other comprehensive income | (920) | (920) | |||
Net loss | (10,444) | (10,444) | |||
Ending balance at Dec. 31, 2022 | 8,885 | $ 229 | 165,708 | (1,937) | (155,115) |
Ending balance, shares at Dec. 31, 2022 | 74,891,844 | ||||
Beginning balance at Jun. 30, 2023 | 6,967 | $ 286 | 186,456 | (1,450) | (178,325) |
Beginning balance, Shares at Jun. 30, 2023 | 93,781,478 | ||||
Shares issued for repayment of convertible bond (Value) | 1,054 | $ 3 | 1,051 | ||
Shares issued for repayment of convertible bond (Shares) | 1,052,422 | ||||
Vesting of RSUs (Value) | 1 | $ 1 | |||
Vesting of RSUs (Shares) | 185,540 | ||||
Stock-based compensation expense | 524 | 524 | |||
Currency translation adjustments | 42 | 42 | |||
Changes in the fair value of the convertible notes at fair value through other comprehensive income | 75 | 75 | |||
Net loss | (10,154) | (10,154) | |||
Ending balance at Sep. 30, 2023 | (1,491) | $ 290 | 188,031 | (1,333) | (188,479) |
Ending balance, shares at Sep. 30, 2023 | 95,019,440 | ||||
Beginning balance at Jun. 30, 2023 | 6,967 | $ 286 | 186,456 | (1,450) | (178,325) |
Beginning balance, Shares at Jun. 30, 2023 | 93,781,478 | ||||
Net loss | (18,639) | ||||
Ending balance at Dec. 31, 2023 | (7,956) | $ 305 | 190,437 | (1,734) | (196,964) |
Ending balance, shares at Dec. 31, 2023 | 99,930,156 | ||||
Beginning balance at Sep. 30, 2023 | (1,491) | $ 290 | 188,031 | (1,333) | (188,479) |
Beginning balance, Shares at Sep. 30, 2023 | 95,019,440 | ||||
Shares issued for repayment of convertible bond (Value) | 1,943 | $ 15 | 1,928 | ||
Shares issued for repayment of convertible bond (Shares) | 4,835,388 | ||||
Shares issued under the employee share purchase program (Value) | 93 | 93 | |||
Shares issued under the employee share purchase program (Shares) | 75,328 | ||||
Stock-based compensation expense | 385 | 385 | |||
Currency translation adjustments | (401) | (401) | |||
Net loss | (8,485) | (8,485) | |||
Ending balance at Dec. 31, 2023 | $ (7,956) | $ 305 | $ 190,437 | $ (1,734) | $ (196,964) |
Ending balance, shares at Dec. 31, 2023 | 99,930,156 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 6 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Cash flows from operating activities: | ||
Net loss | $ (18,639) | $ (22,397) |
Adjustments to reconcile net loss to net cash used in operating activities | ||
Depreciation and amortization | 235 | 258 |
Impairment of property and equipment | 306 | 0 |
Stock-based compensation | 909 | 1,584 |
Equity in losses of affiliate | 0 | 9 |
Reduction of Kantaro liability | 0 | (55) |
Fair value adjustment to VericiDx investment | 245 | 1,199 |
Unrealized foreign exchange gain | 0 | 271 |
Realized foreign exchange loss (gain) | (163) | 0 |
Fair value adjustment to convertible debt, net interest paid | 1,059 | 730 |
Non cash lease expense | 57 | 52 |
Changes in operating assets and liabilities: | ||
Accounts receivable | (594) | 81 |
Prepaid expenses and other current assets | 45 | 494 |
Receivable from affiliates | 0 | (22) |
Accounts payable | 618 | 2,773 |
Accounts payable - related party | (744) | (1,083) |
Accrued expenses and other current liabilities | (2,465) | 1,367 |
Accrued expenses - related party | 1,708 | (566) |
Deferred revenue | 0 | (46) |
Net cash used in operating activities | (17,423) | (15,351) |
Cash flows from investing activities: | ||
Payment for long term deferred expense | 0 | (64) |
Net cash used in investing activities | 0 | (64) |
Cash flows from financing activities: | ||
Payment of convertible notes principal | (1,660) | (1,648) |
Payment of issuance costs | (5) | 0 |
Proceeds from purchase of ordinary shares under employee share purchase plan | 93 | 116 |
Net cash used in financing activities | (1,572) | (1,532) |
Effect of exchange rate changes on cash | (68) | (570) |
Net decrease in cash and cash equivalents | (19,063) | (17,517) |
Cash and cash equivalents, beginning of period | 24,682 | 41,333 |
Cash and cash equivalents, end of period | 5,619 | 23,816 |
Supplemental noncash investing and financing activities: | ||
Cash paid for interest on convertible debt | $ 249 | $ 0 |
Business and risks
Business and risks | 6 Months Ended |
Dec. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Business and risks | 1. Business and risks Renalytix PLC and its wholly-owned subsidiaries, the “Company” or "Renalytix" is an artificial intelligence-enabled in vitro diagnostics company, focused on optimizing clinical management of kidney disease to drive improved patient outcomes and significantly lower healthcare costs. KidneyIntelX, the Company’s first-in-class diagnostic platform, employs a proprietary artificial intelligence-enabled algorithm that combines diverse data inputs, including validated blood-based biomarkers, inherited genetics and personalized patient data from EHR systems, to generate a unique patient risk score. Additionally, the Company has successfully completed a statement of work with AstraZeneca Pharmaceuticals LP (“AstraZeneca”) to conduct a feasibility study to determine the impact of the use of the Company’s KidneyIntelX platform to optimize utilization of various CKD agents. As a result of the initial success with AstraZeneca the Company plans to pursue further collaborations with pharmaceutical companies and make ‘Pharmaceutical Services Revenue’ a core part of the business going forward with the goal of improving guideline-based standard-of-care for optimal utilization of existing and novel therapeutics using the KidneyIntelX testing platform and proprietary care management software. Since inception in March 2018, the Company has focused primarily on organizing and staffing the Company, raising capital, developing the KidneyIntelX platform, conducting clinical validation studies for KidneyIntelX, establishing and protecting its intellectual property portfolio and commercial laboratory operations, pursuing regulatory clearance and developing a reimbursement strategy. The Company has funded its operations primarily through equity and debt financings. The Company is subject to risks and uncertainties common to early-stage companies in the diagnostics industry, including, but not limited to, ability to secure additional capital to fund operations, compliance with governmental regulations, development by competitors of new technological innovations, dependence on key personnel and protection of proprietary technology. To achieve widespread usage, KidneyIntelX and additional diagnostic products currently under development will require extensive clinical testing and validation prior to regulatory approval and commercialization. These efforts require significant amounts of additional capital, adequate personnel, and infrastructure, and extensive compliance-reporting capabilities. |
Liquidity and Going Concern
Liquidity and Going Concern | 6 Months Ended |
Dec. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Liquidity and Going Concern | 2. Liquidity and Going Concern The Company has incurred recurring losses and negative cash flows from operations since inception and had an accumulated deficit of $ 197.0 million as of December 31, 2023. The Company anticipates incurring additional losses until such time, if ever, that it can generate significant sales of KidneyIntelX or any future products currently in development. As a result of its losses and projected cash needs, substantial doubt exists about the Company’s ability to continue as a going concern. Substantial additional capital will be necessary to fund the Company's operations, expand its commercial activities and develop other potential diagnostic related products. The Company is seeking additional funding through public or private equity offerings, debt financings, other collaborations, strategic alliances and licensing arrangements. The Company may not be able to obtain financing on acceptable terms, or at all, and the Company may not be able to enter into strategic alliances or other arrangements on favorable terms, or at all. The terms of any financing may adversely affect the holdings or the rights of the Company’s shareholders. If the Company is unable to obtain funding, the Company may not be able to meet its obligations and could be required to delay, curtail or discontinue research and development programs, product portfolio expansion or commercialization efforts, which could adversely affect its business prospect. The Company’s ability to continue as a going concern is contingent upon successful execution of management’s intended plan over the next twelve months to improve the Company’s liquidity and profitability, which includes, without limitation: • Seeking additional capital through public or private equity offerings, debt financings, other collaborations, strategic alliances and licensing arrangements • Implementation of various additional operating cost reduction options that are available to the Company • The achievement of a certain volume of assumed revenue The consolidated financial statements do not include any adjustments that may result from the outcome of this going concern uncertainty. |
Basis of presentation and summa
Basis of presentation and summary of significant accounting policies | 6 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
Basis of presentation and summary of significant accounting policies | 3. Basis of presentation and summary of significant accounting policies The accompanying consolidated financial statements have been prepared in conformity with generally accepted accounting principles in the United States (“U.S. GAAP”). Any reference in these notes to applicable guidance is meant to refer to U.S. GAAP as found in the Accounting Standards Codification (“ASC”) and Accounting Standards Updates (“ASU”) of the Financial Accounting Standards Board (“FASB”). In the opinion of management, the unaudited condensed consolidated financial statements reflect all adjustments, which include only normal recurring adjustments necessary for the fair statement of the balances and results for the periods presented. Principles of consolidation The consolidated financial statements include the accounts of Renalytix plc, and its wholly-owned subsidiaries. All inter-company balances and transactions have been eliminated in consolidation. The Company accounts for investments in which it has significant influence but not a controlling financial interest using the equity method of accounting. Use of estimates The preparation of the consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and reported amounts of expenses during the reporting period. Actual results could differ from those estimates. Due to the uncertainty of factors surrounding the estimates or judgments used in the preparation of the consolidated financial statements, actual results may materially vary from these estimates. Estimates and assumptions are periodically reviewed, and the effects of revisions are reflected in the consolidated financial statements in the period they are determined to be necessary. Significant areas that require management’s estimate include the assumptions used in determining the fair value of share-based awards, determining the fair value of the bonds, recording the prepaid/accrual and associated expense for research and development activities performed for the Company by third parties and determining useful lives of property and equipment and capitalized software. Segment information The Company manages its operations as a single operating segment for the purposes of assessing performance and making operating decisions. The Company’s singular focus is to make significant improvements in kidney disease diagnosis and prognosis, clinical care, patient stratification for drug clinical trials, and drug target discovery. Foreign currency The Company’s consolidated financial statements are presented in U.S. dollars, the reporting currency of the Company. The functional currency of Renalytix plc and Renalytix AI Limited is GB Pounds. The functional currency of Renalytix AI, Inc. is the U.S. dollar. Assets and liabilities of Renalytix plc and Renalytix AI Limited are translated at the rate of exchange at period-end, while the statements of operations are translated at the weighted average exchange rates in effect during the reporting period. The net effect of these translation adjustments is shown as a component of accumulated other comprehensive loss. Transaction gains and losses resulting from exchange rate changes on transactions denominated in currencies other than the functional currency are included in income in the period in which the change occurs and reported in the consolidated statements of operations and comprehensive loss. Concentrations of credit risk and major customers Financial instruments that potentially subject the Company to concentrations of credit risk consist principally of cash and accounts receivable balances. Periodically, the Company maintains deposits in accredited financial institutions in excess of federally insured limits. The Company deposits its cash in financial institutions that it believes have high credit quality and are not exposed to any unusual credit risk beyond the normal credit risk associated with commercial banking relationships and has not experienced any losses on such accounts. The Company’s accounts receivable are derived from revenue earned from customers located in the U.S. For the six months ended December 31, 2023 , approximately 91 % of all receivables related to KidneyIntelX testing revenue related to two customers and approximately 9 % of receivables were due from other party payors. For the six months ended December 31, 2022 , two customers made up 92 % of the Company's receivables. The remaining 8 % of receivables were due from other third party payors. The Company performs initial and ongoing credit reviews on customers, which involve consideration of the customers’ financial information, their location, and other factors to assess the customers’ ability to pay and reserved for $ 0.1 million of receivables as of December 31, 2023 . Fair value of financial instruments At December 31, 2023 and June 30, 2023 , the Company’s financial instruments included accounts receivable, prepaid expenses and other current assets, accounts payable, accrued expenses and other current liabilities. The carrying amounts of these assets and liabilities approximates fair value due to their short-term nature. The convertible notes are recorded at their estimated fair value. Fair value option Under the Fair Value Option Subsections of ASC subtopic 825-10, Financial Instruments – Overall , the Company has the irrevocable option to report most financial assets and financial liabilities at fair value on an instrument-by-instrument basis, with changes in fair value reported in earnings (see Note 5). The Company has elected to measure and record the convertible notes at their estimated fair value. Cash and cash equivalents The Company considers all highly liquid investments purchased with an original maturity of 90 days or less to be cash equivalents. As of December 31, 2023 and June 30, 2023, the Company had cash and cash equivalents of $ 5.6 million and $ 24.7 million, respectively. Accounts receivable Accounts receivable are recorded at the invoice amount and are non-interest bearing. The Company estimates expected credit losses of its accounts receivable by assessing the risk of loss and available relevant information about collectability, including historical credit losses, existing contractual payment terms, actual payment patterns of its customers, individual customer circumstances, and reasonable and supportable forecast of economic conditions expected to exist throughout the contractual life of the receivable. The Company reserved for $ 0.1 million of receivables as of December 31, 2023 . The Company reserved for $ 0.1 million of receivables as of June 30, 2023 . Property and equipment Property and equipment are recorded at cost. Depreciation is determined using the straight-line method over the estimated useful lives ranging from three to ten years. Expenditures for maintenance and repairs are expensed as incurred while renewals and betterments are capitalized. When property and equipment are sold or otherwise disposed of, the cost and related accumulated depreciation are eliminated from the accounts and any resulting gain or loss is reflected in operations. In November 2023 t he Company consolidated lab operations which resulted in the $0.3 million impairment of property and equipment at the Company's Utah lab for the three and six months ended December 31, 2023. There was no impairment loss on property and equipment in the six months ended December 31, 2022. Investments VericiDx plc The Company accounts for its ownership of VericiDx securities at fair value in accordance with ASC 321, Investments-Equity Securities , with changes in fair value recorded in earnings as the fair value of VericiDx's ordinary shares is readily determinable via the London Stock Exchange. Based on the closing stock price of VericiDx, the fair value of the investment in VericiDx was $ 1.2 million and $ 1.5 million at December 31, 2023 and June 30, 2023 , respectively. During the three months ended December 31, 2023 and 2022, the Company recorded an increase in fair value of $ 0.2 million and a decrease in fair value of $ 0.3 million, respectively, in the consolidated statements of operations and comprehensive loss. During the six months ended December 31, 2023 and 2022, the Company recorded a decrease in fair value of $ 0.2 million and $ 1.2 million, respectively, in the consolidated statements of operations and comprehensive loss. The Company owned 5.8 % of the ordinary shares of VericiDx at December 31, 2023 and June 30, 2023. Impairment assessment The Company evaluates its investments that are in unrealized loss positions, if any, and equity method investments for other-than-temporary impairment on a quarterly basis (see Note 5). Such evaluation involves a variety of considerations, including assessments of the risks and uncertainties associated with general economic conditions and distinct conditions affecting specific issuers or investees. Factors considered by the Company include (i) the length of time and the extent to which an investment’s fair value has been below its cost; (ii) the financial condition, credit worthiness, and near-term prospects of the issuer; (iii) the length of time to maturity; (iv) future economic conditions and market forecasts; (v) the Company’s intent and ability to retain its investment for a period of time sufficient to allow for recovery of market value; (vi) an assessment of whether it is more likely than not that the Company will be required to sell its investment before recovery of market value; and (vii) whether events or changes in circumstances indicate that the investment’s carrying amount might not be recoverable. Software development costs The Company follows the provisions of ASC 985, Software , which requires software development costs for software to marketed externally to be expensed as incurred until the establishment of technological feasibility, at which time those costs are capitalized until the software is available for general release and amortized over its estimated useful life of ten years . For the three and six months ended December 31, 2023 and 2022 , there was no capitalization of research and development expenses related to software development to record. Technological feasibility is established upon the completion of a working model that has been validated. Revenue recognition Pursuant to ASC 606, Revenue from Contracts with Customers, the Company recognizes revenue when a customer obtains control of promised goods or services. The Company records the amount of revenue that reflects the consideration that it expects to receive in exchange for those goods or services. The Company applies the following five-step model in order to determine this amount: (i) identification of the promised goods or services in the contract; (ii) determination of whether the promised goods or services are performance obligations, including whether they are distinct in the context of the contract; (iii) measurement of the transaction price, including the constraint on variable consideration; (iv) allocation of the transaction price to the performance obligations; and (v) recognition of revenue when (or as) the Company satisfies each performance obligation. The Company only applies the five-step model to contracts when it is probable that it will collect the consideration to which it is entitled in exchange for the goods or services that it transfers to the customer. Once a contract is determined to be within the scope of ASC 606 at contract inception, the Company reviews the contract to determine which performance obligations it must deliver and which of these performance obligations are distinct. Certain contracts have options for the customer to acquire additional services. The Company evaluates these options to determine if a material right exists. If, after that evaluation, it determines a material right does exist, it assigns value to the material right based upon the renewal option approach. The Company recognizes as revenue the amount of the transaction price that is allocated to each performance obligation when that performance obligation is satisfied or as it is satisfied. The Company uses the present right to payment principle and customer acceptance as indicators to determine the transfer of control to the customer occurs at a point in time. Sales tax and other similar taxes are excluded from revenues. Cost of revenue Cost of revenue consists of costs directly attributable to the services rendered, including labor, rent, lab consumables, depreciation, amortization and sample collection costs directly related to revenue generating activities. Research and development expenses Research and development costs consist primarily of internal and external labor costs incurred in connection with the development of KidneyIntelX as well as expenses related to studies and clinical trials to further the clinical value, performance and utility of KidneyIntelX. Research and development costs are expensed as incurred. Share-based compensation The Company measures equity classified share-based awards granted to employees and nonemployees based on the estimated fair value on the date of grant and recognizes compensation expense of those awards over the requisite service period, which is the vesting period of the respective award. The Company accounts for forfeitures as they occur. For share-based awards with service-based vesting conditions, the Company recognizes compensation expense on a straight-line basis over the service period. The fair value of each stock option grant is estimated on the date of grant using the Black-Scholes option-pricing model, which requires inputs based on certain subjective assumptions, including the expected stock price volatility, the expected term of the option, the risk-free interest rate for a period that approximates the expected term of the option, and the Company’s expected dividend yield. The Company was a privately-held organization prior to November 2018 and has been a publicly-traded company for a limited period of time and therefore lacks company-specific historical and implied volatility information for its shares. Therefore, it estimates its expected share price volatility based on the historical volatility of publicly-traded peer companies and expects to continue to do so until such time as it has adequate historical data regarding the volatility of its own traded share price. The expected term of the Company’s stock options has been determined utilizing the “simplified” method for awards that qualify as “plain-vanilla” options. The risk-free interest rate is determined by reference to the U.S. Treasury yield curve in effect at the time of grant of the award for time periods approximately equal to the expected term of the award. Expected dividend yield is none based on the fact that the Company has never paid cash dividends on ordinary shares and does not expect to pay any cash dividends in the foreseeable future. The Company classifies share-based compensation expense in its consolidated statement of operations and comprehensive loss in the same manner in which the award recipient’s payroll costs are classified or in which the award recipient’s service payments are classified. Income taxes Income taxes are accounted for under the asset and liability method as required by FASB ASC Topic 740, Income Taxes (ASC 740). Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. A reduction in the carrying value of the deferred tax assets is required when it is not more likely than not that such deferred tax assets are realizable. FASB ASC Subtopic 740-10, Accounting for Uncertainty of Income Taxes (ASC 740-10), defines the criterion an individual tax position must meet for any part of the benefit of the tax position to be recognized in financial statements prepared in conformity with U.S. GAAP. The Company may recognize the tax benefit from an uncertain tax position only if it is more likely than not such tax position will be sustained on examination by the taxing authorities, based solely on the technical merits of the respective tax position. The tax benefits recognized in the financial statements from such a tax position should be measured based on the largest benefit having a greater than 50% likelihood of being realized upon ultimate settlement with the tax authority. In accordance with disclosure requirements of ASC 740-10, the Company’s policy on income statement classification of interest and penalties related to income tax obligations is to include such items as part of income tax expense. The Company recorded an immaterial provision for income taxes for the three and six months ended December 31, 2023. The Company did not record a provision for income taxes for the three and six months ended December 31, 2022, as the Company has generated losses for such periods. The Company periodically evaluates the realizability of its deferred tax assets based on all available evidence, both positive and negative. The realization of deferred tax assets is dependent on the Company’s ability to generate sufficient future taxable income during periods prior to the expiration of tax attributes to fully utilize these assets. The Company weighed both positive and negative evidence and determined that there is a continued need for a full valuation allowance on its deferred tax assets as of December 31, 2023. Should the Company determine that it would be able to realize its remaining deferred tax assets in the foreseeable future, an adjustment to its remaining deferred tax assets would cause a material increase to income in the period such determination is made. Comprehensive loss Comprehensive loss includes net loss as well as other changes in shareholders’ equity that result from transactions and economic events other than those with shareholders. For the periods presented, changes in shareholders’ equity includes foreign currency translation as well as changes in fair value of the convertible note due to changes in instrument specific credit risk. The change in instrument specific credit risk was calculated as the change in the risk yield from the convertible debt issuance date to the valuation date. The instrument specific credit risk at issuance date was calibrated such that the fair value of the convertible bond was equal to the issue price as of the issuance date. The risk yield was adjusted to reflect the change in credit spreads between the issuance date and the valuation date. Net loss per ordinary share Basic net loss per ordinary share is computed by dividing net loss by the weighted average number of ordinary shares outstanding during each period. Diluted net loss per ordinary share includes the effect, if any, from the potential exercise or conversion of securities, such as options and convertible debt which would result in the issuance of incremental ordinary shares. The dilutive effect of convertible securities is calculated using the if-converted method. Under the if-converted method, interest charges applicable to the convertible debt as well as nondiscretionary adjustments which include any expenses or charges that are determined based on the income (loss) for the period are added back to net income. The convertible debt is assumed to have been converted at the beginning of the period (or at time of issuance, if later). For the three and six months ended December 31, 2023, under the if-converted method, the add back of nondiscretionary adjustments and inclusion of potentially converted shares would be anti-dilutive. Emerging growth company The Company is an emerging growth company as defined in the Jumpstart Our Business Startups Act of 2012, as amended (the “JOBS Act”). Under the JOBS Act, companies have extended transition periods available for complying with new or revised accounting standards. The Company has elected to avail itself of this exemption and, therefore, while the Company is an emerging growth company it will not be subject to new or revised accounting standards at the same time that they become applicable to other public emerging growth companies that have not elected to avail themselves of this exemption. Recently issued accounting pronouncements In June 2016, the FASB issued ASU 2016-13, Financial Instruments—Credit Losses: Measurement of Credit Losses on Financial Instruments , which requires measurement and recognition of expected credit losses for financial assets held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. This is different from the previous guidance as this will require immediate recognition of estimated credit losses expected to occur over the remaining life of many financial assets. The Company implemented ASU 2016-13 in the fiscal year beginning July 1, 2023 and evaluated the impact of ASU 2016-13 and it did not have a material impact on the consolidated financial statements. In August 2020, the FASB issued ASU 2020-06, Debt - Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging - Contracts in Entity’s Own Equity (Subtopic 815-40), Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity (“ ASU 2020 - 06 ”). ASU 2020-06 eliminates two of the three models in ASC 470-20 that require issuers to separately account for embedded conversion features and eliminates some of the requirements for equity classification in ASC 815-40-25 for contracts in an entity’s own equity. The guidance also requires entities to use the if-converted method for all convertible instruments in the diluted earnings per share calculation and generally requires them to include the effect of potential share settlement for instruments that may be settled in cash or shares. It is effective for annual periods beginning after December 15, 2023, and interim periods therein. The Company evaluated the effect of ASU 2020-06 and it is not expected to have a material impact on the consolidated financial statements. |
Revenue
Revenue | 6 Months Ended |
Dec. 31, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | 4. Revenue Testing services revenue Each individual test is a performance obligation that is satisfied at a point in time upon completion of the testing process (when results are reported) which is when control passes to the customer and revenue is recognized. During the three and six months ended December 31, 2023, the Company recogn ized $ 0.7 million and $ 1.2 milli on, respectively, of testing services revenue. During the three and six months ended December 31, 2022 , the Company recognized $ 1.0 million and $ 2.0 million, respectively, of testing services revenue. Sales tax and other similar taxes are excluded from revenues. Pharmaceutical services revenue Pharmaceutical services revenue is generated from the provision of analytical services to customers. Contracts with customers generally include an initial upfront payment and additional payments upon achieving performance milestones. The Company uses the present right to payment principle and customer acceptance as indicators to determine the transfer of control to the customer which may occur at a point in time or over time depending on the individual contract terms. Sales tax and other similar taxes are excluded from revenues. During the three and six months ended December 31, 2023 , there was no pharmaceutical services revenue recognized. During each of the three and six months ended December 31, 2022 , the Company recognized $ 0.2 mil lion of pharmaceutical services revenue where performance obligations are satisfied at a point in time. |
Fair value measurements and the
Fair value measurements and the fair value option | 6 Months Ended |
Dec. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
Fair value measurements and the fair value option | 5. Fair value measurements and the fair value option Assets and liabilities recorded at fair value on a recurring basis in the consolidated balance sheets are categorized based upon the level of judgment associated with the inputs used to measure their fair values. Fair value is defined as the exchange price that would be received for an asset or an exit price that would be paid to transfer a liability 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 authoritative guidance on fair value measurements establishes a three-tier fair value hierarchy for disclosure of fair value measurements as follows: • Level 1—Quoted prices (unadjusted in active markets for identical assets or liabilities) • Level 2—Inputs other than quoted prices in active markets that are observable either directly or indirectly • Level 3—Unobservable inputs in which there is little or no market data, which require the Company to develop its own assumptions This hierarchy requires the use of observable market data when available and to minimize the use of unobservable inputs when determining fair value. The following fair value hierarchy table presents information about the Company’s assets measured at fair value on a recurring basis: Fair value measurement at reporting date using (in thousands) (Level 1) (Level 2) (Level 3) December 31, 2023 Assets: Equity Securities $ 1,220 $ — $ — Liabilities: Convertible notes $ — $ — $ 8,373 June 30, 2023 Assets: Equity Securities $ 1,460 $ — $ — Liabilities: Convertible notes $ — $ — $ 11,948 The Company accounts for its ownership of VericiDx securities at fair value in accordance with ASC 321, Investments-Equity Securities , with changes in fair value recorded in earnings as the fair value of VericiDx's ordinary shares is readily determinable via the London Stock Exchange. The Company owns 9,831,681 shares of VericiDx. Based on closing stock price of VericiDx, the fair value of the investment in VericiDx was $ 1.2 million and $ 1.5 million at December 31, 2023 and June 30, 2023, respectively. As further described in Note 8, in April 2022 the Company issued convertible promissory notes (the “Notes”) to an investor. The fair value option, as prescribed by ASC 815, Derivatives and Hedging, was elected and applied in connection with the preparation of these consolidated financial statements. The fair value of the Notes is determined using a scenario-based analysis that estimates the fair value based on the probability-weighted present value of expected future investment returns, considering each of the possible outcomes available to the noteholders. The Company adjusts the carrying value of the Notes to their estimated fair value at each reporting date, with qualifying increases or decreases in the fair value recorded as change in fair value of convertible promissory notes in the statements of operations and comprehensive loss. Changes in the fair value resulting from changes in the instrument-specific credit risk will be presented separately in other comprehensive income. The following table shows the fair value movements of the Notes for the six months ended December 31, 2023: (in thousands) Balance at July 1, 2023 $ 11,948 Change due to payment of principal and interest ( 4,911 ) Fair value adjustments 1,321 Change in credit risk ( 75 ) FX Impact 90 Balance at December 31, 2023 $ 8,373 Non-financial assets and liabilities The Company’s non-financial assets, which primarily consist of property and equipment and equity method investments, are not required to be measured at fair value on a recurring basis, and instead are reported at carrying value in its consolidated balance sheet. However, on a periodic basis or whenever events or changes in circumstances indicate that they may not be fully recoverable, the respective carrying value of non-financial assets are assessed for impairment and, if ultimately considered impaired, are adjusted and written down to their fair value, as estimated based on consideration of external market participant assumptions. |
Property and equipment, net and
Property and equipment, net and intangibles | 6 Months Ended |
Dec. 31, 2023 | |
Property, Plant and Equipment [Abstract] | |
Property and equipment, net and intangibles | 6. Property and equipment, net and intangibles Property and equipment consists of (in thousands): (in thousands) December 31, 2023 June 30, 2023 Lab equipment $ 873 $ 1,142 Office equipment 124 124 Office furniture 1 35 Leasehold improvements — 576 Total 998 1,877 Less accumulated depreciation ( 422 ) ( 850 ) $ 576 $ 1,027 Depreciation expense was $ 0.1 million and $ 0.2 million for the three and six months ended December 31, 2023 , respectively. Depreciation expense was $ 0.1 million and $ 0.2 million for the three and six months ended December 31, 2022, respectively. Software consists of (in thousands): (in thousands) December 31, 2023 June 30, 2023 Software (Included in Other Assets) $ 1,535 $ 1,526 Less accumulated amortization ( 570 ) ( 476 ) $ 965 $ 1,050 As of December 31, 2023, the expected amortization expense for the next five years and thereafter is as follows: (in thousands) 2024 $ 92 2025 184 2026 141 2027 126 2028 126 Thereafter 296 $ 965 |
Accrued expenses and other curr
Accrued expenses and other current liabilities | 6 Months Ended |
Dec. 31, 2023 | |
Accounts Payable and Accrued Liabilities, Current [Abstract] | |
Accrued expenses and other current liabilities | 7. Accrued expenses and other current liabilities Accrued expenses and other current liabilities consisted of (in thousands): December 31, 2023 June 30, 2023 Consulting and professional fees $ 909 $ 442 Research and development 1,180 1,657 Payroll and related benefits 1,212 3,866 License and Royalty Expense 737 669 Other 221 10 $ 4,259 $ 6,644 |
Convertible Notes
Convertible Notes | 6 Months Ended |
Dec. 31, 2023 | |
Debt Disclosure [Abstract] | |
Convertible Notes | 8. Convertible Notes In April 2022, the Company issued amortizing senior convertible bonds with a principal amount of $ 21.2 million in amortizing senior convertible bonds due in April 2027 (the "Bonds") to Heights Capital Ireland LLC (the "Convertible Bond Investor"). The Bonds were issued at 85 % par value with total net proceeds of $ 18.0 million and accrue interest at an annual rate of 5.5 %, payable quarterly in arrears, in cash or American Depositary Shares ("ADSs") valued at the ADS Settlement Price at the option of the Compan y. The principal and interest payments are due in equal quarterly installments starting in July 2022. The Bonds contain various conversion and redemption features. The initial conversion price for the Bonds of $ 8.70 has been set at a 20 percent premium to the Reference ADS Price. The Conversion Price may reset down at 12 , 24 and 36 months , depending on share price performance, and the Bonds have a hard floor in the conversion price of $ 7.25 . As a result of the February 2023 private placement and pursuant to conditions of the bond agreement, the conversion price was adjusted to $ 8.2508 (previously $ 8.70 ) and the floor price was adjusted to $ 6.8757 (previously $ 7.25 ). Further, pursuant to conditions of the agreement, effective April 7, 2023, the conversion price was adjusted from $ 8.2508 to $ 7.7924 . Between amortization dates, the Convertible Bond Investor retains the right to advance future amortization payments, provided that (a) there shall be no amortization advancements during the first 12 months, (b) no more than 2 amortization advancements may occur in any 12 month period, and (c) no more than 1 amortization advancement may occur in any 3 month period. The Convertible Bond Investor is also permitted to defer up to two amortization payments to a subsequent amortization date. The Company retains the option to repay any deferred amortization in cash at 100 percent of the nominal amount. In July 2023, the Company made a cash amortization payment of $ 1.4 million, which consisted of $ 1.1 million of principal and $ 0.3 million of interest. Also in July 2023, the Convertible Bond Investor exercised its right to advance an amortization payment and the Company made an accelerated repayment of $ 1.06 million through the issuance of 526,211 ADSs. In October 2023, the Company made an amortization payment of $ 1.3 million, which consisted of $ 1.1 million of principal and $ 0.2 million of interest, through the issuance of 2,335,388 ordinary shares in the form of 150,000 ordinary shares and 1,092,694 ADSs. In December 2023, the Company made an amortization payment of $ 1.3 million, which consisted of $ 1.1 million of principal and $ 0.2 million of interest, through the issuance of 2,500,000 ordinary shares and a cash payment of $ 0.6 million. As of December 31, 2023, $ 13.8 million of principal was outstanding. On issuance, the Company elected to account for the Bonds at fair value in accordance with ASC 815, Derivatives and Hedging, with qualifying changes in fair value being recognized through the statements of operations until the Bonds are settled. Changes in fair value related to instrument-specific credit risk are recognized through comprehensive loss until the Bonds are settled. The fair value of the bonds is determined using a scenario-based analysis that estimates the fair value based on the probability-weighted present value of expected future investment returns, considering each of the possible outcomes available to the noteholders. Significant assumptions used in the fair value analysis include the volatility rate, risk-free rate, dividend yield and risky yield. The fair value of the Bonds was determined to be $ 16.9 million on issuance, which is the principal amount of the Bonds. On issuance, total debt issuance costs of $ 1.4 million were immediately expensed as a component of general and administrative expense in the consolidated statement of operations during the year ended June 30, 2022. As of December 31, 2023, the fair value of the Bonds was determined to be $ 8.5 million. During the three months ended December 31, 2023 and 2022 , the Company recognized no change and a $ 0.9 million increase in fair value of the Notes related to the instrument-specific credit risk in comprehensive loss, respectively, and an increase in fair value related to non-instrument specific credit risk of $ 0.1 million and $ 0.4 million as a loss in the consolidated statement of operations, respectively. During six months ended December 31, 2023 and 2022, the Company recognized a decrease of $ 0.1 million and an increase of $ 0.5 million in the fair value of the Notes related to the instrument-specific credit risk in comprehensive loss, respectively, and an increase in fair value related to non-instrument specific credit risk of $ 1.3 million and $ 0.7 million as a loss in the consolidated statement of operations, respectively. |
Leases
Leases | 6 Months Ended |
Dec. 31, 2023 | |
Lessee Disclosure [Abstract] | |
Leases | 9. Leases The Company leases certain office space and laboratory space. At the inception of an arrangement, the Company determines whether the arrangement is or contains a lease based on the unique facts and circumstances present. The Company does not recognize right-of-use assets or lease liabilities for leases determined to have a term of 12 months or less. Many of the Company's leases contain variable non-lease components such as maintenance, taxes, insurance, and similar costs for the spaces it occupies. Variable executory costs, as it relates to net leases, are excluded from the calculation of the lease liability. Variable executory costs include costs relating to utilities, repairs, maintenance, insurance, common area expenses, and taxes paid for the leased asset during its economic life. Upon adoption of ASC 842, the Company elected the package of practical expedients and the hindsight practical expedient but did not elect the easement practical expedient which is not applicable to the Company as the Company does not have any ground leases. In accordance with the package of practical expedients, the Company has not reassessed any of their existing or expired contracts or any other agreements that were previously concluded to not contain a lease for the following practical expedient guidance: (1) whether the arrangement is or contains a lease, (2) lease classification and (3) whether previously capitalized costs continue to qualify as initial direct costs. The Company leased lab space in Salt Lake City, UT, under a five-year lease, the term of which commenced in November 2019. The Company has measured its right-of-use assets and lease liabilities based on lease terms ending in October 2024 . The Company leased lab space in New York City, NY under an initial three-month lease, the term of which commenced in February 2019. The Company has classified this lease as a short-term lease as the Company concluded that the noncancelable terms of this lease was less than one year at the commencement and none of the Company's renewals or amendments were for additional noncancelable terms greater than one year. The Company leased lab space in St. Petersburg, FL from under an initial one-year term, the term of which commenced in January 2022. The Company has classified this lease as a short-term lease as the Company concluded that the noncancelable terms of this lease was less than one year at the commencement and none of the Company's renewals or amendments were for additional noncancelable terms greater than one year. The Company leased office space in New York City, NY under an initial month-to-month term, the term of which commenced in June 2018. The lease did not have termination or formal renewal options however the Company can renew their office space if they are still needed and are still available at the end of the term. The Company has classified this lease as a short-term lease as the Company concluded that the noncancelable terms of this lease was less than one year at the commencement and none of the Company's renewals or amendments were for additional noncancelable terms greater than one year. The Company identified and assessed the following significant assumptions in recognizing its right-of-use assets and corresponding lease liabilities during the adoption of ASC 842: As the Company's leases do not provide an implicit rate, it concluded that a 10.0 % IBR, the approximate midpoint between the average commercial real estate loans during 2022, is an appropriate discount rate to use for the Utah lease, which was the only lease existing as of the adoption date. The following table shows the lease balance sheet classification of leases for the six months ended December 31, 2023 (in thousands): (in thousands) December 31, 2023 June 30, 2023 Assets Operating lease right-of-use assets, net of accumulated amortization $ 102 $ 159 Liabilities Current Operating lease liabilities, current $ 111 $ 130 Non-current Operating lease liabilities, non-current $ — $ 41 Total lease liabilities $ 111 $ 171 The following table shows the lease costs for the six months ended December 31, 2023 (in thousands): Lease costs (in thousands) Statement of operations classification December 31, 2023 December 31, 2022 Operating lease costs Operating expenses: research and development $ 64 $ 64 Short term lease costs Operating expenses: research and development $ 48 $ 24 Short term lease costs Operating expenses: general and administrative $ 51 $ 72 Short term lease costs Cost of goods sold $ 173 $ 183 Total lease costs $ 336 $ 343 Other information December 31, 2023 December 31, 2022 Cash paid for amounts included in the measurement of lease liabilities (in thousands) $ 64 $ 64 Remaining lease term - operating leases (in years) 0.9 1.9 Discount rate - operating leases 10 % 10 % The following table shows the lease costs for the three months ended December 31, 2023 (in thousands): Lease costs (in thousands) Statement of operations classification December 31, 2023 December 31, 2022 Operating lease costs Operating expenses: research and development $ 32 $ 33 Short term lease costs Operating expenses: research and development $ 17 $ 11 Short term lease costs Operating expenses: general and administrative $ 25 $ 34 Short term lease costs Cost of goods sold $ 92 $ 92 Total lease costs $ 166 $ 170 Other information December 31, 2023 Year Ended June 30, 2022 Cash paid for amounts included in the measurement of lease liabilities (in thousands) $ 32 $ 33 Remaining lease term - operating leases (in years) 0.9 1.9 Discount rate - operating leases 10 % 10 % The future minimum payments for noncancelable leases with terms in excess of one year as of December 31, 2023 are payable as follows (in thousands): (in thousands) 2024 $ 116 2025 — 2026 — Total minimum lease payments $ 116 Less amounts representing interest $ ( 5 ) Present value of lease liabilities $ 111 |
Commitments and contingencies
Commitments and contingencies | 6 Months Ended |
Dec. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and contingencies | 10. Commitments and contingencies Leases Lease payments under operating leases as of December 31, 2023 and information about the Company’s lease arrangements are disclosed in Note 9, "Leases". Employment agreements The Company has entered into employment agreements with certain key executives providing for compensation and severance in certain circumstances, as set forth in the agreements. Retirement plans The Company maintains a defined contribution 401(k) retirement plan which covers all U.S. employees. Employees are eligible after three months of service. Under the 401(k) plan, participating employees may make contributions in an amount up to the limit set by the Internal Revenue Service on an annual basis. The Company has a safe harbor plan and makes contributions to employee accounts of 5 % of compensation (as defined by the plan). The Company paid $ 0.1 million and $ 0.3 million in contributions for the three and six months ended December 31, 2023 , respectively, and $ 0.1 million and $ 0.2 million for the three and six months ended December 31, 2022, respectively. Legal proceedings The Company is not a party to any litigation and does not have contingency reserves established for any litigation liabilities. At each reporting date, the Company evaluates whether or not a potential loss amount or a potential range of loss is probable and reasonably estimable under the provisions of the authoritative guidance that addresses accounting for contingencies. |
License and services agreements
License and services agreements | 6 Months Ended |
Dec. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
License and services agreements | 11. License and services agreements Mount Sinai license and sponsored research agreements On May 30, 2018, the Company entered into an exclusive license agreement (the “ISMMS License Agreement”) and, on March 7, 2019, a sponsored research agreement (the “ISMMS SRA”) with Mount Sinai. Under the terms of the ISMMS License Agreement, ISMMS granted the Company (i) an exclusive, sublicensable license to use certain patent rights covering specific inventions concerning the utilization of biomarkers guided artificial intelligence techniques for detecting kidney functional decline (the “ISMMS Technology”), (ii) a non-exclusive license under unregistered licensed copyrights and licensed know-how and (iii) an exclusive option to obtain licensed technology conceived after May 30, 2018. The Company is obligated to pay Mount Sinai $ 1.5 million and $ 7.5 million in commercial milestone payments upon achieving worldwide net sales of KidneyIntelX of $ 50.0 million and $ 300.0 million, respectively. The Company is also obligated to pay Mount Sinai a 4 % to 5 % royalty on net sales of KidneyIntelX, subject to customary reductions. Royalties are payable on a product-by-product basis from first commercial sale of such product until the later of (1) expiration of the last valid claim of a licensed patent covering such product or (2) on a country-by-country basis, 12 years from first commercial sale of such product in such country. Moreover, the Company is obligated to pay Mount Sinai between 15 % and 25 % of any consideration received from a sublicensee. As part of the ISMMS SRA, the Company has agreed to fund several research projects to further develop the ISMMS Technology. The Company incurred expenses of $ 0.8 million and $ 1.8 million related to the ISMMS SRA for the three and six months ended December 31, 2023 , respectively, and $ 0.0 million and $ 0.8 million under the ISMMS SRA for the three and six months ended December 31, 2022, respectively. Mount Sinai Clinical Trial agreement In July 2021, the Company entered into a Clinical Trial Agreement (the "CTA") with ISMMS. Under the CTA, ISMMS will undertake a sponsored clinical trial entitled, “A prospective decision impact trial of KidneyIntelX in patients with Type 2 diabetes and existing chronic kidney disease”. The clinical trial is to be conducted at ISMMS with Renalytix agreeing to pay ISMMS in accordance with the agreed upon budget. The clinical trial is expected to last up to four years with a total estimated budget of $ 3.2 million. As of December 31, 2023 , amounts due to ISMMS under the CTA totaled $ 1.0 million, and $ 0.3 million and $ 0.6 million was expensed during the three and six months ended December 31, 2023, respectively. As of December 31, 2022 , amounts due to ISMMS under the CTA totaled $ 0.2 million, and $ 0.0 million and $ 0.1 million was expensed during the three and six months ended December 31, 2022, respectively. Joslin diabetes center agreement In October 2018, the Company purchased a worldwide exclusive license agreement (the “Joslin Agreement”) with the Joslin Diabetes Center, Inc. (“Joslin”) that was previously entered into with EKF Diagnostics Holding Plc (“EKF”), a related party, in July 2017. The license agreement provides the Company with the right to develop and commercialize licensed products covering a novel methodology of diagnosing and predicting kidney disease using certain biomarkers (the “Joslin Diabetes Technology”). Under the terms of the Joslin Agreement, the Company is obligated to pay Joslin aggregate commercial milestone payments of $ 0.3 million and $ 1.0 million upon achieving worldwide net sales of licensed products and processes of $ 2.0 million and $ 10.0 million, respectively. The Company is also obligated to pay Joslin a 5 % royalty on net sales of any licensed products or licensed processes, subject to customary reductions. Moreover, the Company is obligated to pay Joslin 25 % of any consideration received from a sublicense e. The Company accrued $ 0.3 million related to achievement of the first sales milestone and accrued $ 0.4 million of royalties due to Joslin as of December 31, 2023 which were recorded as cost of revenue within the consolidated statement of operations. The Company accrued $ 0.3 million of royalties due to Joslin for the three months ended December 31, 2022. The Joslin Agreement initially expires on July 31, 2025 and is subject to an automatic five-year extension unless either party notifies the other party of its intent not to extend the agreement at least 180 days prior to initial expiration. Either party may terminate the Joslin Agreement earlier upon an uncured material breach of the agreement by the other party, the insolvency of the other party, or in the event the other party is unable to perform its obligations under the agreement for a specified period. Additionally, Joslin may terminate the agreement in the event that the Company ceases developing or commercializing licensed products or processes, if the Company fails to maintain certain required insurance policies, and if the Company fails to pay patent expenses related to the licensed patents. Wake Forest/Atrium Health In May 2021, the Company entered into a partnership with Atrium Health, Wake Forest Baptist Health and Wake Forest School of Medicine to implement an advanced clinical care model to improve kidney health and reduce kidney disease progression and kidney failure. Through these partnerships, KidneyIntelX access will be enabled to primary care physicians, endocrinologists, nephrologists and care teams in 37 hospitals and more than 1,350 care locations across the Carolinas and Georgia. Additionally, the Company entered into a five year clinical trial agreement with Wake Forest University Health Sciences to evaluate the clinical impact of KidneyIntelX on the management of patients with type 2 diabetes (T2D) and diabetic (chronic) kidney disease (stage 1-3). The total estimated cost of the clinical trial is $ 6.9 millio n. To date the Company has incurred $ 4.3 million in clinical trial costs which are recorded in the research and development line of the consolidated statement of operations. As part of the clinical trial, the Company has generated over 2,100 reportable patient results in the Atrium Wake Forest system across over 100 unique providers. As of December 31, 2023, the Company accrued $ 1.1 million related to the clinical trial agreement and expensed $ 0.5 million during the three months ended December 31, 2023. As of December 31, 2022, the Company accrued $ 0.5 million related to the clinical trial agreement and expensed $ 0.4 million during the three months ended December 31, 2022 . |
Shareholders' equity
Shareholders' equity | 6 Months Ended |
Dec. 31, 2023 | |
Stockholders' Equity Note [Abstract] | |
Shareholders' equity | 12. Shareholders’ equity Ordinary shares As of December 31, 2023, the Company had 107,189,897 ordinary shares authorized on a fully diluted basis. Each share entitles the holder to one vote on all matters submitted to a vote of the Company’s shareholders. Ordinary shareholders are entitled to receive dividends as may be declared by the board of directors. From inception through December 31, 2023 , no cash dividends have been declared or paid. |
Share-based compensation
Share-based compensation | 6 Months Ended |
Dec. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Share-based compensation | 13. Share-based compensation Equity Incentive Plan In November 2018, Company established the Renalytix AI plc Share Option Plan (the “2018 Share Option Plan”) and a U.S. Sub-Plan and Non-Employee Sub-Plan. In July 2020, the Company's board of directors adopted and the Company's shareholders approved the 2020 Equity Incentive Plan (the “EIP”), which superseded the 2018 Share Option Plan. The equity incentive plan provides for the Company to grant options, restricted share awards and other share-based awards to employees, directors and consultants of the Company. As of December 31, 2023 , there were 12,179,489 shares available for future issuance under the EIP. The EIP is administered by the board of directors. The exercise prices, vesting and other restrictions are determined at their discretion, except that all options granted have exercise prices equal to the fair value of the underlying ordinary shares on the date of the grant and the term of stock option may not be greater than ten years from the grant date. With respect to the options outstanding as of December 31, 2023: • 5,968,095 options vest equally over twelve quarters following the grant date; • 777,521 options vest 25 % on the one year anniversary of the grant date and the remaining 75 % equally over twelve quarters following the one year anniversary of the grant date; • 301,625 options vest 25 % on the one year anniversary of the grant date, 50 % on the two year anniversary of the grant date, and 25 % on the three year anniversary; • 190,000 options vest one third on the one year anniversary of the grant date and the remaining two thirds equally over eight quarters following the one year anniversary of the grant date; • 12,500 options vest quarterly over two years following the grant date; and • 10,000 options vested on the vesting commencement date. If options remain unexercised after the date one day before the tenth anniversary of grant, the options expire. On termination of employment, any options that remain unexercised are either forfeited immediately or after a delayed expiration period, depending on the circumstances of termination. Upon the exercise of awards, new ordinary shares are issued by the Company. The Company recorded share-based compensation expense in the following expense categories in the consolidated statements of operations for the three and six months ended December 31, 2023 and 2022 (in thousands): For the Three Months Ended December 31, For the Six Months Ended December 31, 2023 2022 2023 2022 Research and development $ 80 $ 113 $ 177 $ 180 General and administrative $ 302 700 $ 726 1,396 Cost of revenue $ 3 2 $ 6 2 $ 385 $ 815 $ 909 $ 1,578 The fair value of options is estimated using the Black-Scholes option pricing model, which takes into account inputs such as the exercise price, the value of the underlying ordinary shares at the grant date, expected term, expected volatility, risk-free interest rate and dividend yield. The fair value of each grant of options during the three months ended December 31, 2023 and 2022 were determined using the methods and assumptions discussed below. • The expected term of employee options is determined using the “simplified” method, as prescribed in SEC’s Staff Accounting Bulletin No. 107, whereby the expected life equals the arithmetic average of the vesting term and the original contractual term of the option due to the Company’s lack of sufficient historical data. • The expected volatility is based on historical volatility of the publicly-traded common stock of a peer group of companies. • The risk-free interest rate is based on the interest rate payable on U.S. Treasury securities in effect at the time of grant for a period that is commensurate with the assumed expected term. • The expected dividend yield is none because the Company has not historically paid and does not expect for the foreseeable future to pay a dividend on its ordinary shares. For the six months ended December 31, 2023 and 2022, the grant date fair value of all option grants was estimated at the time of grant using the Black-Scholes option-pricing model using the following weighted average assumptions: For the Six Months Ended December 31, 2023 2022 Expected term (in years) 6.4 6.1 Expected volatility 74.3 % 66.9 % Risk-free rate 4.3 % 3.2 % Dividend yield — % — % The weighted average fair value of the options granted during the three and six months ended December 31, 2023 and 2022 was $ 0.96 and $ 1.16 per share, respectively. The following table summarizes the stock option granted to employees and non-employees for the six months ended December 31, 2023: Number of Weighted- Weighted- Outstanding at June 30, 2023 4,968,576 $ 4.50 6.7 Granted 2,673,296 $ 1.32 Exercised — $ - Forfeited ( 380,568 ) $ 5.48 Expired ( 1,563 ) $ 6.68 Outstanding at December 31, 2023 7,259,741 $ 3.29 7.3 Exercisable at December 31, 2023 4,452,018 $ 4.29 6.0 Vested and expected to vest at December 31, 2023 7,259,741 $ 3.29 7.3 As of December 31, 2023, there was $ 2.87 million in unrecognized compensation cost related to unvested options that will be recognized as expense over a weighted average period of 2.10 years. The aggregate intrinsic value of options outstanding and options exercisable at each of December 31, 2023 and December 31, 2022 was $ 0 . Employee Share Purchase Plan The Company’s 2020 Employee Share Purchase Plan (the “ESPP”) became effective on August 17, 2020. The ESPP authorizes the issuance of up to 850,000 of the Company’s ordinary shares. The number of the Company's ordinary shares that may be issued pursuant to rights granted under the ESPP shall automatically increase on January 1st of each year, commencing on January 1, 2021 and continuing for ten years , in an amount equal to the lesser of one percent of the total number of the Company’s ordinary shares outstanding on December 31st of the preceding calendar year, and 2,000,000 ordinary shares, subject to the discretion of the board of directors or remuneration committee to determine a lesser number of shares shall be added for such year. Under the ESPP, eligible employees can purchase the Company’s ordinary shares through accumulated payroll deductions at such times as are established by the board of directors or remuneration committee. Eligible employees may purchase the Company’s ordinary shares at 85 % of the lower of the fair market value of the Company’s ordinary shares on the first day of the offering period or on the purchase date. Eligible employees may contribute up to 15 % of their eligible compensation. Under the ESPP, a participant may not purchase mo re than $ 25,000 worth of the Company’s ordinary shares for each calendar year in which such rights are outstanding. During the six months ended December 31, 2023, 75,328 shares were purchased under the ESPP. During the six months ended December 31, 2022, 131,412 shares were purchased under the ESPP. In accordance with the guidance in ASC 718-50 – Compensation – Stock Compensation , the ability to purchase shares of the Company’s ordinary shares at 85% of the lower of the price on the first day of the offering period or the last day of the offering period (i.e. the purchase date) represents an option and, therefore, the ESPP is a compensatory plan under this guidance. Accordingly, share-based compensation expense is determined based on the option’s grant-date fair value as estimated by applying the Black Scholes option-pricing model and is recognized over the withholding period. The Company recognized share-based compensation expense of $ 0.01 million during the six months ended December 31, 2023 related to the ESPP. The Company did no t recognize compensation expense related to the ESPP for the three months ended December 31, 2023. The Company recognized share-based compensation expense of $ 0.02 million and $ 0.05 million in the three and six months ended December 31, 2022, respectively. Restricted Stock Units Activity for restricted stock units for the six months ended December 31, 2023 is as follows: Number of Weighted- Non-vested balance at June 30, 2023 40,340 $ 1.72 Granted — $ - Vested ( 20,150 ) $ 2.10 Forfeited ( 9,045 ) $ 1.69 Non-vested balance at December 31, 2023 11,145 $ 0.63 The total fair value of restricted stock units vested during the three months ended December 31, 2023 was $ 0.1 million. Restricted stock units vest upon the achievement of time-based service requirements. At December 31, 2023 , total unrecognized compensation expense related to non-vested restricted stock units was approximately $ 0.01 million. Unrecognized compensation expense relating to restricted stock units that are deemed probable of vesting is expected to be recognized over a weighted-average period of approximately 1.01 years. |
Related-party transactions
Related-party transactions | 6 Months Ended |
Dec. 31, 2023 | |
Related Party Transactions [Abstract] | |
Related-party transactions | 14. Related-party transactions EKF Diagnostic Holdings During the three and six months ended December 31, 2023, the Company incurred expenses of $ 0.00 million and $ 0.01 million, respectively, related to employees of EKF who provided services to Renalytix. During the three and six months ended December 31, 2022 , the Company incurred expenses of $ 0.03 million and $ 0.05 million, respectively, related to employees of EKF who provided services to Renalytix. Icahn School of Medicine at Mount Sinai In May 2018, the Company secured its cornerstone license agreement with ISMMS for research and clinical study work and intended commercialization by the Company (see Note 11). As part of the collaboration, ISMMS became a shareholder in the Company and has subsequently made equity investments both in the Company’s initial public offering (the "IPO") on AIM in November 2018, the subsequent sale of ordinary shares in July 2019 and the Company’s IPO on Nasdaq in July 2020 and private placements in April 2022 and February 2023. As of December 31, 2023, amounts due to ISMMS totaled $ 4.4 million and are included within accrued expenses and other current liabilities and accounts payable on the balance sheet. During the three and six months ended December 31, 2023 , the Company incurred expenses of $ 1.1 million and $ 2.4 million, respectively, related to its obligations under the ISMMS license agreement. During the three and six months ended December 31, 2022 , the Company incurred expenses of $ 0.00 million and $ 1.40 million, respectively, which are included in research and development expenses in the condensed consolidated statement of operations. |
Net loss per ordinary share
Net loss per ordinary share | 6 Months Ended |
Dec. 31, 2023 | |
Earnings Per Share [Abstract] | |
Net loss per ordinary share | 15. Net loss per ordinary share Basic net loss per ordinary share is computed by dividing net loss by the weighted average number of ordinary shares outstanding during each period. Diluted net loss per ordinary share includes the effect, if any, from the potential exercise or conversion of securities, such as options which would result in the issuance of incremental ordinary shares. Potentially dilutive securities outstanding as of December 31, 2023 and December 31, 2022 have been excluded from the computation of diluted weighted average shares outstanding as they would be anti-dilutive. Therefore, the weighted average number of shares used to calculate both basic and diluted net loss per share are the same. The following potentially dilutive securities have been excluded from the computation of diluted weighted-average shares of ordinary shares outstanding as they would be anti-dilutive: For the Six Months Ended December 31, 2023 2022 Stock options to purchase ordinary shares 7,259,741 4,977,699 Restricted stock units 22,290 179,960 Conversion of convertible note 4,625,019 2,071,264 11,907,050 7,228,923 |
Basis of presentation and sum_2
Basis of presentation and summary of significant accounting policies (Policies) | 6 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
Principles of consolidation | Principles of consolidation The consolidated financial statements include the accounts of Renalytix plc, and its wholly-owned subsidiaries. All inter-company balances and transactions have been eliminated in consolidation. The Company accounts for investments in which it has significant influence but not a controlling financial interest using the equity method of accounting. |
Use of estimates | Use of estimates The preparation of the consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and reported amounts of expenses during the reporting period. Actual results could differ from those estimates. Due to the uncertainty of factors surrounding the estimates or judgments used in the preparation of the consolidated financial statements, actual results may materially vary from these estimates. Estimates and assumptions are periodically reviewed, and the effects of revisions are reflected in the consolidated financial statements in the period they are determined to be necessary. Significant areas that require management’s estimate include the assumptions used in determining the fair value of share-based awards, determining the fair value of the bonds, recording the prepaid/accrual and associated expense for research and development activities performed for the Company by third parties and determining useful lives of property and equipment and capitalized software. |
Segment information | Segment information The Company manages its operations as a single operating segment for the purposes of assessing performance and making operating decisions. The Company’s singular focus is to make significant improvements in kidney disease diagnosis and prognosis, clinical care, patient stratification for drug clinical trials, and drug target discovery. |
Foreign currency | Foreign currency The Company’s consolidated financial statements are presented in U.S. dollars, the reporting currency of the Company. The functional currency of Renalytix plc and Renalytix AI Limited is GB Pounds. The functional currency of Renalytix AI, Inc. is the U.S. dollar. Assets and liabilities of Renalytix plc and Renalytix AI Limited are translated at the rate of exchange at period-end, while the statements of operations are translated at the weighted average exchange rates in effect during the reporting period. The net effect of these translation adjustments is shown as a component of accumulated other comprehensive loss. Transaction gains and losses resulting from exchange rate changes on transactions denominated in currencies other than the functional currency are included in income in the period in which the change occurs and reported in the consolidated statements of operations and comprehensive loss. |
Concentrations of credit risk and major customers | Concentrations of credit risk and major customers Financial instruments that potentially subject the Company to concentrations of credit risk consist principally of cash and accounts receivable balances. Periodically, the Company maintains deposits in accredited financial institutions in excess of federally insured limits. The Company deposits its cash in financial institutions that it believes have high credit quality and are not exposed to any unusual credit risk beyond the normal credit risk associated with commercial banking relationships and has not experienced any losses on such accounts. The Company’s accounts receivable are derived from revenue earned from customers located in the U.S. For the six months ended December 31, 2023 , approximately 91 % of all receivables related to KidneyIntelX testing revenue related to two customers and approximately 9 % of receivables were due from other party payors. For the six months ended December 31, 2022 , two customers made up 92 % of the Company's receivables. The remaining 8 % of receivables were due from other third party payors. The Company performs initial and ongoing credit reviews on customers, which involve consideration of the customers’ financial information, their location, and other factors to assess the customers’ ability to pay and reserved for $ 0.1 million of receivables as of December 31, 2023 . |
Fair value of financial instruments | Fair value of financial instruments At December 31, 2023 and June 30, 2023 , the Company’s financial instruments included accounts receivable, prepaid expenses and other current assets, accounts payable, accrued expenses and other current liabilities. The carrying amounts of these assets and liabilities approximates fair value due to their short-term nature. The convertible notes are recorded at their estimated fair value. |
Fair value option | Fair value option Under the Fair Value Option Subsections of ASC subtopic 825-10, Financial Instruments – Overall , the Company has the irrevocable option to report most financial assets and financial liabilities at fair value on an instrument-by-instrument basis, with changes in fair value reported in earnings (see Note 5). The Company has elected to measure and record the convertible notes at their estimated fair value. |
Cash and cash equivalents | Cash and cash equivalents The Company considers all highly liquid investments purchased with an original maturity of 90 days or less to be cash equivalents. As of December 31, 2023 and June 30, 2023, the Company had cash and cash equivalents of $ 5.6 million and $ 24.7 million, respectively. |
Accounts receivable | Accounts receivable Accounts receivable are recorded at the invoice amount and are non-interest bearing. The Company estimates expected credit losses of its accounts receivable by assessing the risk of loss and available relevant information about collectability, including historical credit losses, existing contractual payment terms, actual payment patterns of its customers, individual customer circumstances, and reasonable and supportable forecast of economic conditions expected to exist throughout the contractual life of the receivable. The Company reserved for $ 0.1 million of receivables as of December 31, 2023 . The Company reserved for $ 0.1 million of receivables as of June 30, 2023 . |
Property and equipment | Property and equipment Property and equipment are recorded at cost. Depreciation is determined using the straight-line method over the estimated useful lives ranging from three to ten years. Expenditures for maintenance and repairs are expensed as incurred while renewals and betterments are capitalized. When property and equipment are sold or otherwise disposed of, the cost and related accumulated depreciation are eliminated from the accounts and any resulting gain or loss is reflected in operations. |
Equity method investment | Investments VericiDx plc The Company accounts for its ownership of VericiDx securities at fair value in accordance with ASC 321, Investments-Equity Securities , with changes in fair value recorded in earnings as the fair value of VericiDx's ordinary shares is readily determinable via the London Stock Exchange. Based on the closing stock price of VericiDx, the fair value of the investment in VericiDx was $ 1.2 million and $ 1.5 million at December 31, 2023 and June 30, 2023 , respectively. During the three months ended December 31, 2023 and 2022, the Company recorded an increase in fair value of $ 0.2 million and a decrease in fair value of $ 0.3 million, respectively, in the consolidated statements of operations and comprehensive loss. During the six months ended December 31, 2023 and 2022, the Company recorded a decrease in fair value of $ 0.2 million and $ 1.2 million, respectively, in the consolidated statements of operations and comprehensive loss. The Company owned 5.8 % of the ordinary shares of VericiDx at December 31, 2023 and June 30, 2023. |
Impairment assessment | Impairment assessment The Company evaluates its investments that are in unrealized loss positions, if any, and equity method investments for other-than-temporary impairment on a quarterly basis (see Note 5). Such evaluation involves a variety of considerations, including assessments of the risks and uncertainties associated with general economic conditions and distinct conditions affecting specific issuers or investees. Factors considered by the Company include (i) the length of time and the extent to which an investment’s fair value has been below its cost; (ii) the financial condition, credit worthiness, and near-term prospects of the issuer; (iii) the length of time to maturity; (iv) future economic conditions and market forecasts; (v) the Company’s intent and ability to retain its investment for a period of time sufficient to allow for recovery of market value; (vi) an assessment of whether it is more likely than not that the Company will be required to sell its investment before recovery of market value; and (vii) whether events or changes in circumstances indicate that the investment’s carrying amount might not be recoverable. |
Software development costs | Software development costs The Company follows the provisions of ASC 985, Software , which requires software development costs for software to marketed externally to be expensed as incurred until the establishment of technological feasibility, at which time those costs are capitalized until the software is available for general release and amortized over its estimated useful life of ten years . For the three and six months ended December 31, 2023 and 2022 , there was no capitalization of research and development expenses related to software development to record. Technological feasibility is established upon the completion of a working model that has been validated. |
Revenue recognition | Revenue recognition Pursuant to ASC 606, Revenue from Contracts with Customers, the Company recognizes revenue when a customer obtains control of promised goods or services. The Company records the amount of revenue that reflects the consideration that it expects to receive in exchange for those goods or services. The Company applies the following five-step model in order to determine this amount: (i) identification of the promised goods or services in the contract; (ii) determination of whether the promised goods or services are performance obligations, including whether they are distinct in the context of the contract; (iii) measurement of the transaction price, including the constraint on variable consideration; (iv) allocation of the transaction price to the performance obligations; and (v) recognition of revenue when (or as) the Company satisfies each performance obligation. The Company only applies the five-step model to contracts when it is probable that it will collect the consideration to which it is entitled in exchange for the goods or services that it transfers to the customer. Once a contract is determined to be within the scope of ASC 606 at contract inception, the Company reviews the contract to determine which performance obligations it must deliver and which of these performance obligations are distinct. Certain contracts have options for the customer to acquire additional services. The Company evaluates these options to determine if a material right exists. If, after that evaluation, it determines a material right does exist, it assigns value to the material right based upon the renewal option approach. The Company recognizes as revenue the amount of the transaction price that is allocated to each performance obligation when that performance obligation is satisfied or as it is satisfied. The Company uses the present right to payment principle and customer acceptance as indicators to determine the transfer of control to the customer occurs at a point in time. Sales tax and other similar taxes are excluded from revenues. |
Cost of revenue | Cost of revenue Cost of revenue consists of costs directly attributable to the services rendered, including labor, rent, lab consumables, depreciation, amortization and sample collection costs directly related to revenue generating activities. |
Research and development expenses | Research and development expenses Research and development costs consist primarily of internal and external labor costs incurred in connection with the development of KidneyIntelX as well as expenses related to studies and clinical trials to further the clinical value, performance and utility of KidneyIntelX. Research and development costs are expensed as incurred. |
Share-based compensation | The Company measures equity classified share-based awards granted to employees and nonemployees based on the estimated fair value on the date of grant and recognizes compensation expense of those awards over the requisite service period, which is the vesting period of the respective award. The Company accounts for forfeitures as they occur. For share-based awards with service-based vesting conditions, the Company recognizes compensation expense on a straight-line basis over the service period. The fair value of each stock option grant is estimated on the date of grant using the Black-Scholes option-pricing model, which requires inputs based on certain subjective assumptions, including the expected stock price volatility, the expected term of the option, the risk-free interest rate for a period that approximates the expected term of the option, and the Company’s expected dividend yield. The Company was a privately-held organization prior to November 2018 and has been a publicly-traded company for a limited period of time and therefore lacks company-specific historical and implied volatility information for its shares. Therefore, it estimates its expected share price volatility based on the historical volatility of publicly-traded peer companies and expects to continue to do so until such time as it has adequate historical data regarding the volatility of its own traded share price. The expected term of the Company’s stock options has been determined utilizing the “simplified” method for awards that qualify as “plain-vanilla” options. The risk-free interest rate is determined by reference to the U.S. Treasury yield curve in effect at the time of grant of the award for time periods approximately equal to the expected term of the award. Expected dividend yield is none based on the fact that the Company has never paid cash dividends on ordinary shares and does not expect to pay any cash dividends in the foreseeable future. The Company classifies share-based compensation expense in its consolidated statement of operations and comprehensive loss in the same manner in which the award recipient’s payroll costs are classified or in which the award recipient’s service payments are classified. |
Income taxes | Income taxes Income taxes are accounted for under the asset and liability method as required by FASB ASC Topic 740, Income Taxes (ASC 740). Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. A reduction in the carrying value of the deferred tax assets is required when it is not more likely than not that such deferred tax assets are realizable. FASB ASC Subtopic 740-10, Accounting for Uncertainty of Income Taxes (ASC 740-10), defines the criterion an individual tax position must meet for any part of the benefit of the tax position to be recognized in financial statements prepared in conformity with U.S. GAAP. The Company may recognize the tax benefit from an uncertain tax position only if it is more likely than not such tax position will be sustained on examination by the taxing authorities, based solely on the technical merits of the respective tax position. The tax benefits recognized in the financial statements from such a tax position should be measured based on the largest benefit having a greater than 50% likelihood of being realized upon ultimate settlement with the tax authority. In accordance with disclosure requirements of ASC 740-10, the Company’s policy on income statement classification of interest and penalties related to income tax obligations is to include such items as part of income tax expense. The Company recorded an immaterial provision for income taxes for the three and six months ended December 31, 2023. The Company did not record a provision for income taxes for the three and six months ended December 31, 2022, as the Company has generated losses for such periods. The Company periodically evaluates the realizability of its deferred tax assets based on all available evidence, both positive and negative. The realization of deferred tax assets is dependent on the Company’s ability to generate sufficient future taxable income during periods prior to the expiration of tax attributes to fully utilize these assets. The Company weighed both positive and negative evidence and determined that there is a continued need for a full valuation allowance on its deferred tax assets as of December 31, 2023. Should the Company determine that it would be able to realize its remaining deferred tax assets in the foreseeable future, an adjustment to its remaining deferred tax assets would cause a material increase to income in the period such determination is made. |
Comprehensive loss | Comprehensive loss Comprehensive loss includes net loss as well as other changes in shareholders’ equity that result from transactions and economic events other than those with shareholders. For the periods presented, changes in shareholders’ equity includes foreign currency translation as well as changes in fair value of the convertible note due to changes in instrument specific credit risk. The change in instrument specific credit risk was calculated as the change in the risk yield from the convertible debt issuance date to the valuation date. The instrument specific credit risk at issuance date was calibrated such that the fair value of the convertible bond was equal to the issue price as of the issuance date. The risk yield was adjusted to reflect the change in credit spreads between the issuance date and the valuation date. |
Net loss per ordinary share | Net loss per ordinary share Basic net loss per ordinary share is computed by dividing net loss by the weighted average number of ordinary shares outstanding during each period. Diluted net loss per ordinary share includes the effect, if any, from the potential exercise or conversion of securities, such as options and convertible debt which would result in the issuance of incremental ordinary shares. The dilutive effect of convertible securities is calculated using the if-converted method. Under the if-converted method, interest charges applicable to the convertible debt as well as nondiscretionary adjustments which include any expenses or charges that are determined based on the income (loss) for the period are added back to net income. The convertible debt is assumed to have been converted at the beginning of the period (or at time of issuance, if later). For the three and six months ended December 31, 2023, under the if-converted method, the add back of nondiscretionary adjustments and inclusion of potentially converted shares would be anti-dilutive. |
Emerging growth company | Emerging growth company The Company is an emerging growth company as defined in the Jumpstart Our Business Startups Act of 2012, as amended (the “JOBS Act”). Under the JOBS Act, companies have extended transition periods available for complying with new or revised accounting standards. The Company has elected to avail itself of this exemption and, therefore, while the Company is an emerging growth company it will not be subject to new or revised accounting standards at the same time that they become applicable to other public emerging growth companies that have not elected to avail themselves of this exemption. |
Recently issued accounting pronouncements | Recently issued accounting pronouncements In June 2016, the FASB issued ASU 2016-13, Financial Instruments—Credit Losses: Measurement of Credit Losses on Financial Instruments , which requires measurement and recognition of expected credit losses for financial assets held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. This is different from the previous guidance as this will require immediate recognition of estimated credit losses expected to occur over the remaining life of many financial assets. The Company implemented ASU 2016-13 in the fiscal year beginning July 1, 2023 and evaluated the impact of ASU 2016-13 and it did not have a material impact on the consolidated financial statements. In August 2020, the FASB issued ASU 2020-06, Debt - Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging - Contracts in Entity’s Own Equity (Subtopic 815-40), Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity (“ ASU 2020 - 06 ”). ASU 2020-06 eliminates two of the three models in ASC 470-20 that require issuers to separately account for embedded conversion features and eliminates some of the requirements for equity classification in ASC 815-40-25 for contracts in an entity’s own equity. The guidance also requires entities to use the if-converted method for all convertible instruments in the diluted earnings per share calculation and generally requires them to include the effect of potential share settlement for instruments that may be settled in cash or shares. It is effective for annual periods beginning after December 15, 2023, and interim periods therein. The Company evaluated the effect of ASU 2020-06 and it is not expected to have a material impact on the consolidated financial statements. |
Fair value measurements and t_2
Fair value measurements and the fair value option (Tables) | 6 Months Ended |
Dec. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value of Assets Measured on Recurring Basis | The following fair value hierarchy table presents information about the Company’s assets measured at fair value on a recurring basis: Fair value measurement at reporting date using (in thousands) (Level 1) (Level 2) (Level 3) December 31, 2023 Assets: Equity Securities $ 1,220 $ — $ — Liabilities: Convertible notes $ — $ — $ 8,373 June 30, 2023 Assets: Equity Securities $ 1,460 $ — $ — Liabilities: Convertible notes $ — $ — $ 11,948 |
Schedule of Fair Value Movements of the Notes | The following table shows the fair value movements of the Notes for the six months ended December 31, 2023: (in thousands) Balance at July 1, 2023 $ 11,948 Change due to payment of principal and interest ( 4,911 ) Fair value adjustments 1,321 Change in credit risk ( 75 ) FX Impact 90 Balance at December 31, 2023 $ 8,373 |
Property and equipment, net a_2
Property and equipment, net and intangibles (Tables) | 6 Months Ended |
Dec. 31, 2023 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property Plant and Equipment | Property and equipment consists of (in thousands): (in thousands) December 31, 2023 June 30, 2023 Lab equipment $ 873 $ 1,142 Office equipment 124 124 Office furniture 1 35 Leasehold improvements — 576 Total 998 1,877 Less accumulated depreciation ( 422 ) ( 850 ) $ 576 $ 1,027 |
Schedule of Intangible Assets | Software consists of (in thousands): (in thousands) December 31, 2023 June 30, 2023 Software (Included in Other Assets) $ 1,535 $ 1,526 Less accumulated amortization ( 570 ) ( 476 ) $ 965 $ 1,050 |
Schedule of Expected Amortization Expense for the Next Five Years and Thereafter | As of December 31, 2023, the expected amortization expense for the next five years and thereafter is as follows: (in thousands) 2024 $ 92 2025 184 2026 141 2027 126 2028 126 Thereafter 296 $ 965 |
Accrued expenses and other cu_2
Accrued expenses and other current liabilities (Tables) | 6 Months Ended |
Dec. 31, 2023 | |
Accounts Payable and Accrued Liabilities, Current [Abstract] | |
Schedule of Accrued Expenses and Other Current Liabilities | Accrued expenses and other current liabilities consisted of (in thousands): December 31, 2023 June 30, 2023 Consulting and professional fees $ 909 $ 442 Research and development 1,180 1,657 Payroll and related benefits 1,212 3,866 License and Royalty Expense 737 669 Other 221 10 $ 4,259 $ 6,644 |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Dec. 31, 2023 | |
Lessee Disclosure [Abstract] | |
Schedule of Balance Sheets Classification of Leases | The following table shows the lease balance sheet classification of leases for the six months ended December 31, 2023 (in thousands): (in thousands) December 31, 2023 June 30, 2023 Assets Operating lease right-of-use assets, net of accumulated amortization $ 102 $ 159 Liabilities Current Operating lease liabilities, current $ 111 $ 130 Non-current Operating lease liabilities, non-current $ — $ 41 Total lease liabilities $ 111 $ 171 |
Schedule of Lease Cost | The following table shows the lease costs for the six months ended December 31, 2023 (in thousands): Lease costs (in thousands) Statement of operations classification December 31, 2023 December 31, 2022 Operating lease costs Operating expenses: research and development $ 64 $ 64 Short term lease costs Operating expenses: research and development $ 48 $ 24 Short term lease costs Operating expenses: general and administrative $ 51 $ 72 Short term lease costs Cost of goods sold $ 173 $ 183 Total lease costs $ 336 $ 343 Other information December 31, 2023 December 31, 2022 Cash paid for amounts included in the measurement of lease liabilities (in thousands) $ 64 $ 64 Remaining lease term - operating leases (in years) 0.9 1.9 Discount rate - operating leases 10 % 10 % The following table shows the lease costs for the three months ended December 31, 2023 (in thousands): Lease costs (in thousands) Statement of operations classification December 31, 2023 December 31, 2022 Operating lease costs Operating expenses: research and development $ 32 $ 33 Short term lease costs Operating expenses: research and development $ 17 $ 11 Short term lease costs Operating expenses: general and administrative $ 25 $ 34 Short term lease costs Cost of goods sold $ 92 $ 92 Total lease costs $ 166 $ 170 Other information December 31, 2023 Year Ended June 30, 2022 Cash paid for amounts included in the measurement of lease liabilities (in thousands) $ 32 $ 33 Remaining lease term - operating leases (in years) 0.9 1.9 Discount rate - operating leases 10 % 10 % |
Schedule of Payments for Noncancelable Leases | The future minimum payments for noncancelable leases with terms in excess of one year as of December 31, 2023 are payable as follows (in thousands): (in thousands) 2024 $ 116 2025 — 2026 — Total minimum lease payments $ 116 Less amounts representing interest $ ( 5 ) Present value of lease liabilities $ 111 |
Share-based compensation (Table
Share-based compensation (Tables) | 6 Months Ended |
Dec. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Summary of Total Stock-Based Compensation Expenses | The Company recorded share-based compensation expense in the following expense categories in the consolidated statements of operations for the three and six months ended December 31, 2023 and 2022 (in thousands): For the Three Months Ended December 31, For the Six Months Ended December 31, 2023 2022 2023 2022 Research and development $ 80 $ 113 $ 177 $ 180 General and administrative $ 302 700 $ 726 1,396 Cost of revenue $ 3 2 $ 6 2 $ 385 $ 815 $ 909 $ 1,578 |
Summary of Stock Option Pricing Model Assumption | For the six months ended December 31, 2023 and 2022, the grant date fair value of all option grants was estimated at the time of grant using the Black-Scholes option-pricing model using the following weighted average assumptions: For the Six Months Ended December 31, 2023 2022 Expected term (in years) 6.4 6.1 Expected volatility 74.3 % 66.9 % Risk-free rate 4.3 % 3.2 % Dividend yield — % — % |
Summary of Option Activity | The following table summarizes the stock option granted to employees and non-employees for the six months ended December 31, 2023: Number of Weighted- Weighted- Outstanding at June 30, 2023 4,968,576 $ 4.50 6.7 Granted 2,673,296 $ 1.32 Exercised — $ - Forfeited ( 380,568 ) $ 5.48 Expired ( 1,563 ) $ 6.68 Outstanding at December 31, 2023 7,259,741 $ 3.29 7.3 Exercisable at December 31, 2023 4,452,018 $ 4.29 6.0 Vested and expected to vest at December 31, 2023 7,259,741 $ 3.29 7.3 |
Summary of Restricted Stock Units | Activity for restricted stock units for the six months ended December 31, 2023 is as follows: Number of Weighted- Non-vested balance at June 30, 2023 40,340 $ 1.72 Granted — $ - Vested ( 20,150 ) $ 2.10 Forfeited ( 9,045 ) $ 1.69 Non-vested balance at December 31, 2023 11,145 $ 0.63 |
Net loss per ordinary share (Ta
Net loss per ordinary share (Tables) | 6 Months Ended |
Dec. 31, 2023 | |
Earnings Per Share [Abstract] | |
Schedule of Potentially Dilutive Securities | The following potentially dilutive securities have been excluded from the computation of diluted weighted-average shares of ordinary shares outstanding as they would be anti-dilutive: For the Six Months Ended December 31, 2023 2022 Stock options to purchase ordinary shares 7,259,741 4,977,699 Restricted stock units 22,290 179,960 Conversion of convertible note 4,625,019 2,071,264 11,907,050 7,228,923 |
Liquidity and Going Concern - A
Liquidity and Going Concern - Additional Information (Detail) - USD ($) $ in Thousands | Dec. 31, 2023 | Jun. 30, 2023 |
Going Concern [Line Items] | ||
Retained earnings surplus deficit | $ (196,964) | $ (178,325) |
Basis of presentation and sum_3
Basis of presentation and summary of significant accounting policies- Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | Jun. 30, 2023 | |
Accounting Policies [Line Items] | |||||
Cash and cash equivalents | $ 5,619 | $ 5,619 | $ 24,682 | ||
Accounts receivable reserves recorded amount | 100 | 100 | 100 | ||
Impairment of property and equipment | 306 | $ 0 | $ 306 | $ 0 | |
Service [Member] | Accounts Receivable [Member] | Customer Concentration Risk [Member] | |||||
Accounting Policies [Line Items] | |||||
Concentration risk, percentage | 92% | ||||
Kidney Intelx [Member] | Service [Member] | Sales Revenue Net [Member] | Customer Concentration Risk [Member] | |||||
Accounting Policies [Line Items] | |||||
Concentration risk, percentage | 91% | ||||
Other Party Payors [Member] | Service [Member] | Sales Revenue Net [Member] | Customer Concentration Risk [Member] | |||||
Accounting Policies [Line Items] | |||||
Concentration risk, percentage | 9% | ||||
Third Party Payors [Member] | Service [Member] | Accounts Receivable [Member] | Customer Concentration Risk [Member] | |||||
Accounting Policies [Line Items] | |||||
Concentration risk, percentage | 8% | ||||
Verici Dx Limited [Member] | |||||
Accounting Policies [Line Items] | |||||
Equity method investments fair value disclosure | 1,200 | $ 1,200 | $ 1,500 | ||
Fair value adjustment of investments | $ (200) | 300 | $ 200 | $ 1,200 | |
Percentage owned in the ordinary shares | 5.80% | 5.80% | |||
Software and Software Development Costs [Member] | |||||
Accounting Policies [Line Items] | |||||
Estimated useful life | 10 years | 10 years | |||
Research and development expense | $ 0 | $ 0 | $ 0 | $ 0 |
Revenue - Additional Informatio
Revenue - Additional Information (Detail) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | |
Pharmaceutical Services Revenue [Member] | ||||
Revenue From Contract With Customer [Line Items] | ||||
Potential revenue | $ 0 | $ 0 | ||
Transferred at Point in Time [Member] | Testing Services Revenue [Member] | ||||
Revenue From Contract With Customer [Line Items] | ||||
Potential revenue | $ 700,000 | $ 1,000,000 | $ 1,200,000 | $ 2,000,000 |
Transferred at Point in Time [Member] | Pharmaceutical Services Revenue [Member] | ||||
Revenue From Contract With Customer [Line Items] | ||||
Potential revenue | $ 200,000 | $ 200,000 |
Fair value measurements and t_3
Fair value measurements and the fair value option - Schedule of Fair Value of Assets Measured on Recurring Basis (Detail) - Fair Value, Recurring [Member] - USD ($) $ in Thousands | Dec. 31, 2023 | Jun. 30, 2023 |
Level 1 [Member] | ||
Assets, Fair Value Disclosure [Abstract] | ||
Equity Securities | $ 1,220 | $ 1,460 |
Convertible notes | 0 | 0 |
Level 2 [Member] | ||
Assets, Fair Value Disclosure [Abstract] | ||
Equity Securities | 0 | 0 |
Convertible notes | 0 | 0 |
Level 3 [Member] | ||
Assets, Fair Value Disclosure [Abstract] | ||
Equity Securities | 0 | 0 |
Convertible notes | $ 8,373 | $ 11,948 |
Fair value measurements and t_4
Fair value measurements and the fair value option - Schedule of Fair Value Movements of the Notes (Detail) $ in Thousands | 6 Months Ended |
Dec. 31, 2023 USD ($) | |
Fair Value Disclosures [Abstract] | |
Balance at July 1, 2023 | $ 11,948 |
Change due to payment of principal and interest | (4,911) |
Fair value adjustments | 1,321 |
Change in credit risk | (75) |
FX Impact | 90 |
Balance at September 30, 2023 | $ 8,373 |
Fair value measurements and t_5
Fair value measurements and the fair value option - Additional Information (Detail) - Verici Dx Limited [Member] - USD ($) $ in Millions | 6 Months Ended | |
Dec. 31, 2023 | Jun. 30, 2023 | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Owned share of VericiDx | 9,831,681 | |
Equity method investments fair value disclosure | $ 1.2 | $ 1.5 |
Property and equipment, net a_3
Property and equipment, net and intangibles - Schedule of Property Plant and Equipment (Detail) - USD ($) $ in Thousands | Dec. 31, 2023 | Jun. 30, 2023 |
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 998 | $ 1,877 |
Less accumulated depreciation | (422) | (850) |
Property, plant and equipment, net | 576 | 1,027 |
Lab equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 873 | 1,142 |
Office Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 124 | 124 |
Office Furniture [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 1 | 35 |
Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 0 | $ 576 |
Property and equipment, net a_4
Property and equipment, net and intangibles - Schedule of Intangible Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Jun. 30, 2023 |
Finite-Lived Intangible Assets, Net [Abstract] | ||
Software (Included in Other Assets) | $ 1,535 | $ 1,526 |
Less accumulated amortization | (570) | (476) |
Intangible assets, net | $ 965 | $ 1,050 |
Property and equipment, net a_5
Property and equipment, net and intangibles - Schedule of Expected Amortization Expense for the Next Five Years and Thereafter (Detail) $ in Thousands | Dec. 31, 2023 USD ($) |
Property, Plant and Equipment [Abstract] | |
2024 | $ 92 |
2025 | 184 |
2026 | 141 |
2027 | 126 |
2028 | 126 |
Thereafter | 296 |
Amortization expense | $ 965 |
Property and equipment, net a_6
Property and equipment, net and intangibles - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | |
Depreciation Expense | $ 0.1 | $ 0.1 | $ 0.2 | $ 0.2 |
Accrued expenses and other cu_3
Accrued expenses and other current liabilities - Schedule of Accrued Expenses and Other Current Liabilities (Detail) - USD ($) $ in Thousands | Dec. 31, 2023 | Jun. 30, 2023 |
Consulting and professional fees | $ 909 | $ 442 |
Research and development | 1,180 | 1,657 |
Payroll and related benefits | 1,212 | 3,866 |
License and Royalty Expense | 737 | 669 |
Other | 221 | 10 |
Accrued expenses and other current liabilities | $ 4,259 | $ 6,644 |
Debt - Additional Information (
Debt - Additional Information (Detail) - USD ($) $ in Millions | Dec. 31, 2023 | Apr. 07, 2022 | Apr. 05, 2022 |
Debt Instrument [Line Items] | |||
Debt instrument face value | $ 8.5 | $ 16.9 | $ 21.2 |
Convertible Notes - Additional
Convertible Notes - Additional Information (Details) - USD ($) | 1 Months Ended | 3 Months Ended | 6 Months Ended | ||||||||||
Oct. 17, 2023 | Apr. 07, 2022 | Apr. 05, 2022 | Dec. 31, 2023 | Oct. 31, 2023 | Jul. 31, 2023 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | Apr. 07, 2023 | Mar. 31, 2023 | Feb. 09, 2023 | |
Debt Instrument [Line Items] | |||||||||||||
Debt Instrument, Face Amount | $ 16,900,000 | $ 21,200,000 | $ 8,500,000 | $ 8,500,000 | $ 8,500,000 | ||||||||
Senior convertible bond par value percentage | 85% | ||||||||||||
Conversion price per share | $ 7.25 | $ 7.7924 | $ 6.8757 | $ 8.2508 | |||||||||
Convertible bonds, Conversion price percentage | 20% | ||||||||||||
Reset down term one | 12 months | ||||||||||||
Reset down term two | 24 months | ||||||||||||
Reset down term three | 36 months | ||||||||||||
Repayment of deferred amortization percentage | 100% | ||||||||||||
Amount of Cash Amortization Payment | 1,300,000 | $ 1,300,000 | $ 1,400,000 | ||||||||||
Principal of Amount of Cash Amortization | 1,100,000 | 1,100,000 | 1,100,000 | ||||||||||
Amount of Cash Amortization, Interest Payment | 200,000 | $ 200,000 | 300,000 | ||||||||||
Cash payment of amortization | $ 600,000 | ||||||||||||
Principal Amount Outstanding of Cash Amortization | 13,800,000 | ||||||||||||
Proceeds from Notes Payable | 18,000,000 | ||||||||||||
Debt Instrument, Interest Rate, Effective Percentage | 5.50% | ||||||||||||
Debt issuance costs | $ 1,400,000 | ||||||||||||
Fair value adjustment to convertible Debt | 114,000 | $ 440,000 | 1,321,000 | $ 730,000 | |||||||||
Accelerated amount of cash amortization repayment | $ 1,060,000 | ||||||||||||
Ordinary Shares [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Amount of share amortization payment | 150,000 | 2,500,000 | |||||||||||
American Depository Shares [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Conversion price per share | $ 8.7 | ||||||||||||
Accelerated repayment of cash amortization, shares | 2,335,388 | 526,211 | |||||||||||
Amount of share amortization payment | 1,092,694 | ||||||||||||
Instrument Specific Credit Risk [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Fair value adjustment to convertible Debt | 0 | 900,000 | (100,000) | 500,000 | |||||||||
Non Instrument Specific Credit Risk [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Fair value adjustment to convertible Debt | $ 100,000 | $ 400,000 | $ 1,300,000 | $ 700,000 |
Leases - Additional Information
Leases - Additional Information (Detail) | 6 Months Ended |
Dec. 31, 2023 | |
Line of Credit Facility [Line Items] | |
Incremental borrowing rate of average commercial real estate loans | 10% |
Lab Space, Salt Lake City, UT [Member] | |
Line of Credit Facility [Line Items] | |
Lease term | 5 years |
Lease expiration date | 2024-10 |
Lab Space, New York City, NY [Member] | |
Line of Credit Facility [Line Items] | |
Lease term | 3 months |
Lab Space, St. Petersburg, FL [Member] | |
Line of Credit Facility [Line Items] | |
Lease term | 1 year |
Maximum [Member] | |
Line of Credit Facility [Line Items] | |
Lease term | 12 months |
Leases - Schedule of balance sh
Leases - Schedule of balance sheets classification of leases (Detail) - USD ($) $ in Thousands | Dec. 31, 2023 | Jun. 30, 2023 |
Lessee Disclosure [Abstract] | ||
Operating lease right-of-use assets, net of accumulated amortization | $ 102 | $ 159 |
Operating lease liabilities, current | $ 111 | $ 130 |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration] | Liabilities, Current | Liabilities, Current |
Operating lease liabilities, non-current | $ 0 | $ 41 |
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible Enumeration] | Operating lease liabilities, non-current | Operating lease liabilities, non-current |
Total lease liabilities | $ 111 | $ 171 |
Leases - Schedule of lease cost
Leases - Schedule of lease cost (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | Jun. 30, 2022 | |
Lessee, Lease, Description [Line Items] | |||||
Short-term lease cost | $ 92 | $ 92 | $ 173 | $ 183 | |
Total lease costs | 166 | $ 170 | 336 | 343 | |
Cash paid for amounts included in the measurement of lease liabilities | $ 32 | $ 64 | $ 64 | $ 33 | |
Remaining lease term - operating leases | 10 months 24 days | 1 year 10 months 24 days | 10 months 24 days | 1 year 10 months 24 days | 1 year 10 months 24 days |
Discount rate - operating leases | 10% | 10% | 10% | 10% | 10% |
Research and Development [Member] | |||||
Lessee, Lease, Description [Line Items] | |||||
Operating lease cost | $ 32 | $ 33 | $ 64 | $ 64 | |
Short-term lease cost | 17 | 11 | 48 | 24 | |
General and Administrative [Member] | |||||
Lessee, Lease, Description [Line Items] | |||||
Short-term lease cost | $ 25 | $ 34 | $ 51 | $ 72 |
Leases - Schedule of payments f
Leases - Schedule of payments for noncancelable leases (Detail) - USD ($) $ in Thousands | Dec. 31, 2023 | Jun. 30, 2023 |
Lessee Disclosure [Abstract] | ||
2024 | $ 116 | |
2025 | 0 | |
2026 | 0 | |
Total minimum lease payments | 116 | |
Less amounts representing interest | (5) | |
Present value of lease liabilities | $ 111 | $ 171 |
Commitments and contingencies -
Commitments and contingencies - Additional Information (Detail) - Safe Harbor Plan [Member] - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | |
Defined benefit contribution percentage | 5% | |||
Defined benefit contribution amount | $ 0.1 | $ 0.1 | $ 0.3 | $ 0.2 |
License and services agreemen_2
License and services agreements - Additional Information (Detail) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 6 Months Ended | ||
Jul. 31, 2021 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | |
Disclosure Of License Agreements [Line Items] | |||||
Revenue | $ 709 | $ 1,192 | $ 1,168 | $ 2,161 | |
Research and development expenses | 3,225 | 3,326 | $ 6,012 | 7,083 | |
Joslin License [Member] | |||||
Disclosure Of License Agreements [Line Items] | |||||
Royalty as a percentage of net sales | 5% | ||||
Date of expiry of license agreement | Jul. 31, 2025 | ||||
License agreement period of extension | 5 years | ||||
License agreement period of notice to be given for termination of agreement | 180 days | ||||
Accrued Royalties | 400 | 300 | $ 400 | 300 | |
Milestone Three [Member] | Joslin License [Member] | |||||
Disclosure Of License Agreements [Line Items] | |||||
Percentage of obligation on sublicense consideration received | 25% | ||||
Milestone One [Member] | Joslin License [Member] | |||||
Disclosure Of License Agreements [Line Items] | |||||
Milestone payment payable | 300 | $ 300 | |||
Milestone One [Member] | Licensed Products [Member] | Joslin License [Member] | |||||
Disclosure Of License Agreements [Line Items] | |||||
Revenue | 2,000 | ||||
Milestone Two [Member] | Joslin License [Member] | |||||
Disclosure Of License Agreements [Line Items] | |||||
Milestone payment payable | 1,000 | 1,000 | |||
Milestone Two [Member] | Licensed Products [Member] | Joslin License [Member] | |||||
Disclosure Of License Agreements [Line Items] | |||||
Revenue | 10,000 | ||||
First Sales Milestone [Member] | |||||
Disclosure Of License Agreements [Line Items] | |||||
Accrued Royalties | 300 | 300 | |||
Mount Sinai [Member] | ISSMS And SRA [Member] | |||||
Disclosure Of License Agreements [Line Items] | |||||
Research and development expenses | 800 | 0 | 1,800 | 800 | |
Mount Sinai [Member] | Milestone One [Member] | ISSMS And SRA [Member] | |||||
Disclosure Of License Agreements [Line Items] | |||||
Milestone payment payable | 1,500 | 1,500 | |||
Mount Sinai [Member] | Milestone Two [Member] | ISSMS And SRA [Member] | |||||
Disclosure Of License Agreements [Line Items] | |||||
Milestone payment payable | 7,500 | $ 7,500 | |||
Mount Sinai [Member] | Maximum [Member] | ISSMS And SRA [Member] | |||||
Disclosure Of License Agreements [Line Items] | |||||
Royalty as a percentage of net sales | 5% | ||||
Expiration period from first commercial sale of product | 12 years | ||||
Mount Sinai [Member] | Maximum [Member] | Milestone Three [Member] | ISSMS And SRA [Member] | |||||
Disclosure Of License Agreements [Line Items] | |||||
Percentage of obligation on sublicense consideration received | 25% | ||||
Mount Sinai [Member] | Minimum [Member] | ISSMS And SRA [Member] | |||||
Disclosure Of License Agreements [Line Items] | |||||
Royalty as a percentage of net sales | 4% | ||||
Mount Sinai [Member] | Minimum [Member] | Milestone Three [Member] | ISSMS And SRA [Member] | |||||
Disclosure Of License Agreements [Line Items] | |||||
Percentage of obligation on sublicense consideration received | 15% | ||||
Kidney Intelx [Member] | Milestone One [Member] | ISSMS And SRA [Member] | |||||
Disclosure Of License Agreements [Line Items] | |||||
Revenue | $ 50,000 | ||||
Kidney Intelx [Member] | Milestone Two [Member] | ISSMS And SRA [Member] | |||||
Disclosure Of License Agreements [Line Items] | |||||
Revenue | 300,000 | ||||
Mount Sinai Clinical Trial Agreement [Member] | ISMMS [Member] | |||||
Disclosure Of License Agreements [Line Items] | |||||
Estimated budget cost for the agreement | $ 3,200 | ||||
Related party transaction, amount due to related party | 200 | 1,000 | 200 | ||
Expense related to the agreement | 300 | 0 | 600 | 100 | |
Wake Forest/Atrium Health [Member] | |||||
Disclosure Of License Agreements [Line Items] | |||||
Estimated budget cost for the agreement | 6,900 | ||||
Expense related to the agreement | 4,300 | ||||
Wake Forest/Atrium Health [Member] | Clinical Trial Agreement [Member] | |||||
Disclosure Of License Agreements [Line Items] | |||||
Accrued Royalties | 1,100 | 500 | $ 1,100 | $ 500 | |
Expense related to the agreement | $ 500 | $ 400 |
Shareholders' equity - Addition
Shareholders' equity - Additional Information (Detail) - USD ($) | 6 Months Ended | |
Dec. 31, 2023 | Jun. 30, 2023 | |
Class of Stock [Line Items] | ||
Common stock shares authorized | 107,189,897 | 107,189,897 |
Cash dividends | $ 0 |
Share-based compensation - Addi
Share-based compensation - Additional Information (Detail) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | Jun. 30, 2023 | |
Share based Compensation options outstanding | 7,259,741 | 7,259,741 | 4,968,576 | ||
Share based compensation weighted average fair value of the options granted | $ 1.32 | ||||
Share-based compensation expense | $ 385,000 | $ 815,000 | $ 909,000 | $ 1,578,000 | |
Restricted Stock Units [Member] | |||||
Unrecognized compensation expense related to stock options weighted average period | 1 year 3 days | ||||
The total fair value of restricted stock units and performance stock units vested | $ 100,000 | ||||
Total unrecognized compensation expense related to non-vested restricted stock units | $ 10,000 | $ 10,000 | |||
Renalytix AI plc Share Option Plan [Member] | |||||
Share based Compensation options outstanding | 5,968,095 | 5,968,095 | |||
Share based compensation weighted average fair value of the options granted | $ 0.96 | $ 0.96 | $ 1.16 | $ 1.16 | |
Unrecognized compensation expense related to stock options | $ 2,870,000 | $ 2,870,000 | |||
Unrecognized compensation expense related to stock options weighted average period | 2 years 1 month 6 days | ||||
Share based compensation weighted aggregate intrinsic value of the options outstanding | 0 | $ 0 | $ 0 | $ 0 | |
Share based compensation weighted aggregate intrinsic value of the options exercisable | $ 0 | 0 | $ 0 | $ 0 | |
Equity Incentive Plan [Member] | |||||
Common stock reserved for future issuance | 12,179,489 | 12,179,489 | |||
Equity Incentive Plan [Member] | Restricted Stock [Member] | |||||
Share based Compensation options granted | 777,521 | ||||
Share based Compensation options granted percentage | 25% | ||||
Share based Payment terms of award description | With respect to the options outstanding as of December 31, 2023:•5,968,095 options vest equally over twelve quarters following the grant date;•777,521 options vest 25% on the one year anniversary of the grant date and the remaining 75% equally over twelve quarters following the one year anniversary of the grant date; | ||||
Equity Incentive Plan [Member] | Restricted Stock [Member] | 1/12th [Member] | |||||
Share based Payment terms of award description | 301,625 options vest 25% on the one year anniversary of the grant date, 50% on the two year anniversary of the grant date, and 25% on the three year anniversary; •190,000 options vest one third on the one year anniversary of the grant date and the remaining two thirds equally over eight quarters following the one year anniversary of the grant date; •12,500 options vest quarterly over two years following the grant date; and 10,000 options vested on the vesting commencement date. | ||||
Equity Incentive Plan [Member] | Restricted Stock [Member] | Twenty Five Percent Vest On The One Year Anniversary [Member] | |||||
Share based Compensation options granted percentage | 25% | ||||
Equity Incentive Plan [Member] | Restricted Stock [Member] | Seventy Five Percent Vest on the One Year Anniversary [Member] | |||||
Share based Compensation options granted percentage | 75% | ||||
Equity Incentive Plan [Member] | Restricted Stock [Member] | Twenty Five Percent Vest On First And Third Year Anniversary And Fifty Percent Vest On Second Year Anniversary [Member] | |||||
Share based Compensation options granted | 301,625 | ||||
Equity Incentive Plan [Member] | Restricted Stock [Member] | Fifty Percent Vest On Second Year Anniversary [Member] | |||||
Share based Compensation options granted percentage | 50% | ||||
Equity Incentive Plan [Member] | Restricted Stock [Member] | Twenty Five Percent Vest On The Third Year Anniversary [Member] | |||||
Share based Compensation options granted percentage | 25% | ||||
Equity Incentive Plan [Member] | Restricted Stock [Member] | One Third Vest On The One Year Anniversary [Member] | |||||
Share based Compensation options granted | 190,000 | ||||
Equity Incentive Plan [Member] | Restricted Stock [Member] | Vested Quarterly Over Two Years [Member] | |||||
Share based Compensation options granted | 12,500 | ||||
Equity Incentive Plan [Member] | Restricted Stock [Member] | Vested On Vesting Commencement Date [Member] | |||||
Share based Compensation options granted | 10,000 | ||||
Employee Share Purchase Plan Member [Member] | |||||
Share based compensation,number of shares authorized for issuance | 850,000 | 850,000 | |||
Share based compensation,purchase price of common stock at lower of the fair market value on the first day of offering period or purchase date percent | 85% | ||||
Share based compensation,Employees may contribute upto their eligible compensation for purchase of common stock ,Percentage | 15% | 15% | |||
Share Based Compensation Arrangement By Share Based Payment Award Maximum Number Of Shares Per Employees To Be Purchased Value | $ 25,000 | ||||
Share based compensation, number of shares purchased | 75,328 | 131,412 | |||
Share-based compensation expense | $ 0 | $ 20,000 | $ 10,000 | $ 50,000 | |
Employee Share Purchase Plan Member [Member] | Maximum [Member] | |||||
Share based compensation,increase in number of shares for a period | 10 years | ||||
Employee Share Purchase Plan Member [Member] | Minimum [Member] | |||||
Increase in number of shares percentage of the total number of shares common stock outstanding during preceding calendar year End | 1% | ||||
Share based compensation,Minimum number of shares to be added for each preceding calendar year end | 2,000,000 |
Share-based compensation - Summ
Share-based compensation - Summary of Total Stock-based Compensation Expenses (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | |
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Share-based compensation expense | $ 385 | $ 815 | $ 909 | $ 1,578 |
Research and Development [Member] | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Share-based compensation expense | 80 | 113 | 177 | 180 |
General and Administrative [Member] | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Share-based compensation expense | 302 | 700 | 726 | 1,396 |
Cost of Revenue [Member] | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Share-based compensation expense | $ 3 | $ 2 | $ 6 | $ 2 |
Share-based compensation - Su_2
Share-based compensation - Summary of Stock Option Pricing Model Assumption (Detail) | 6 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected term (in years) | 6 years 4 months 24 days | 6 years 1 month 6 days |
Expected volatility | 74.30% | 66.90% |
Risk-free rate | 4.30% | 3.20% |
Dividend yield | 0% | 0% |
Share-based compensation - Su_3
Share-based compensation - Summary of Option Activity (Detail) | 6 Months Ended | 12 Months Ended |
Dec. 31, 2023 $ / shares shares | Jun. 30, 2023 $ / shares shares | |
Share-Based Payment Arrangement [Abstract] | ||
Number of shares under option plan, Beginning balance | shares | 4,968,576 | |
Number of shares under option plan, Granted | shares | 2,673,296 | |
Number of shares under option plan, Exercised | shares | 0 | |
Number of shares under option plan, Forfeited | shares | (380,568) | |
Number of shares under option plan, Expired | shares | (1,563) | |
Number of shares under option plan, Ending balance | shares | 7,259,741 | 4,968,576 |
Number of shares under option plan, Exercisable at September 30, 2023 | shares | 4,452,018 | |
Number of shares under option plan, Vested and expected to vest at September 30, 2023 | shares | 7,259,741 | |
Weighted-average exercise price per option, Beginning balance | $ / shares | $ 4.5 | |
Weighted-average exercise price per option, Granted | $ / shares | 1.32 | |
Weighted-average exercise price per option, Exercised | $ / shares | 0 | |
Weighted-average exercise price per option, Forfeited | $ / shares | 5.48 | |
Weighted-average exercise price per option, Expired | $ / shares | 6.68 | |
Weighted-average exercise price per option, Ending balance | $ / shares | 3.29 | $ 4.5 |
Weighted-average exercise price per option, Exercisable at September 30, 2023 | $ / shares | 4.29 | |
Weighted- average exercise price per option Vested and expected to vest at September 30, 2023 | $ / shares | $ 3.29 | |
Weighted- Average Remaining Contractual Life (years) | 7 years 3 months 18 days | 6 years 8 months 12 days |
Weighted- average remaining contractual life Exercisable at September 30, 2023 | 6 years | |
Weighted- average remaining contractual life Vested and expected to vest at September 30, 2023 | 7 years 3 months 18 days |
Share-based compensation - Su_4
Share-based compensation - Summary of Restricted Stock Units (Detail) - Restricted Stock Units [Member] | 6 Months Ended |
Dec. 31, 2023 $ / shares shares | |
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |
Number of restricted stock units, Beginning Blance | shares | 40,340 |
Number of restricted stock units, Granted | shares | 0 |
Number of restricted stock units, Vested | shares | (20,150) |
Number of restricted stock units, Forfeited | shares | (9,045) |
Number of restricted stock units, Ending balnce | shares | 11,145 |
Weighted-average Grant Date Fair Value | |
Weighted-average grant date fair value, Beginning balance | $ / shares | $ 1.72 |
Weighted-average grant date fair value, Granted | $ / shares | 0 |
Weighted-average grant date fair value, Vested | $ / shares | 2.1 |
Weighted-average grant date fair value, Forfeited | $ / shares | 1.69 |
Weighted-average grant date fair value, Ending Balance | $ / shares | $ 0.63 |
Related-party transactions - Ad
Related-party transactions - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | |
Related Party Transaction [Line Items] | ||||
Research and development expenses | $ 3,225 | $ 3,326 | $ 6,012 | $ 7,083 |
Ekf Diagnostics [Member] | ||||
Related Party Transaction [Line Items] | ||||
Related party transaction expenses | 0 | 30 | 10 | 50 |
Icahn School of Medicine at Mount Sinai [Member] | ||||
Related Party Transaction [Line Items] | ||||
Related party transaction expenses | 1,100 | 2,400 | ||
Research and development expenses | $ 0 | $ 1,400 | ||
Icahn School of Medicine at Mount Sinai [Member] | Accrued Expenses Other Current Liabilities and Accounts Payable [Member] | ||||
Related Party Transaction [Line Items] | ||||
Amount due to related party | $ 4,400 | $ 4,400 |
Net loss per ordinary share - S
Net loss per ordinary share - Schedule of Potentially Dilutive Securities (Details) - shares | 6 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from the computation of earnings per share | 11,907,050 | 7,228,923 |
Stock Options to Purchase Ordinary Shares [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from the computation of earnings per share | 7,259,741 | 4,977,699 |
Restricted Stock Units [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from the computation of earnings per share | 22,290 | 179,960 |
Conversion of Convertible Note [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from the computation of earnings per share | 4,625,019 | 2,071,264 |