Better Therapeutics (BTTX) 10-K 30 Mar 23 2022 FY Annual report Financial data

Cover Page

Cover Page - USD ($)	12 Months Ended
	Dec. 31, 2022	Mar. 08, 2023	Jun. 30, 2022
Cover [Abstract]
Document Type	10-K
Document Annual Report	true
Document Transition Report	false
Document Period End Date	Dec. 31, 2022
Entity File Number	001-39864
Entity Registrant Name	BETTER THERAPEUTICS, INC.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	85-3472546
Entity Address, Address Line One	548 Market Street #49404
Entity Address, City or Town	San Francisco
Entity Address, State or Province	CA
Entity Address, Postal Zip Code	94104
City Area Code	415
Local Phone Number	887-2311
Current Fiscal Year End Date	--12-31
Amendment Flag	false
Entity Filer Category	Non-accelerated Filer
Document Fiscal Year Focus	2022
Document Fiscal Period Focus	FY
Entity Central Index Key	0001832415
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Small Business	true
Entity Emerging Growth Company	true
Entity Shell Company	false
Entity Ex Transition Period	false
ICFR Auditor Attestation Flag	false
Title of 12(b) Security	Common Stock, par value $0.0001 per share
Trading Symbol	BTTX
Security Exchange Name	NASDAQ
Entity Public Float			$ 15,314,200
Entity Common Stock, Shares Outstanding		23,852,272
Documents Incorporated by Reference	DOCUMENTS INCORPORATED BY REFERENCE None.
Auditor Firm ID	149
Auditor Name	Elliott Davis, LLC
Auditor Location	Greenville, South Carolina

BALANCE SHEETS

BALANCE SHEETS - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Current assets:
Cash and cash equivalents	$ 15,740	$ 40,566
Prepaid expenses	2,496	4,409
Other current assets	210	276
Total current assets	18,446	45,251
Capitalized software development costs, net	3,888	5,077
Property and equipment, net	121	82
Other long-term assets	488	548
Total Assets	22,943	50,958
Current liabilities:
Accounts payable	3,035	1,523
Accrued payroll	2,301	1,352
Other accrued expenses	3,626	1,858
Current portion of long-term debt	4,532
Total current liabilities	13,494	4,733
Long-term debt, net of debt issuance costs	10,348	9,505
Total liabilities	23,842	14,238
Commitments and contingencies (Note 14)
Stockholders' equity (deficit)
Common stock, $0.0001 par value per share, 200,000,000 shares authorized as of December 31, 2022 and 2021, respectively and 23,851,022 and 23,602,718 shares issued and outstanding as of December 31, 2022 and 2021, respectively	2	2
Additional paid-in capital	110,602	108,461
Accumulated deficit	(111,503)	(71,743)
Total Stockholders' Equity (Deficit)	(899)	36,720
Total Liabilities and Stockholders' Equity (Deficit)	$ 22,943	$ 50,958

BALANCE SHEETS (Parenthetical)

BALANCE SHEETS (Parenthetical) - $ / shares	Dec. 31, 2022	Dec. 31, 2021
Statement of Financial Position [Abstract]
Common stock par or stated value per share	$ 0.0001	$ 0.0001
Common stock shares authorized	200,000,000	200,000,000
Common stock shares issued	23,851,022	23,602,718
Common stock shares outstanding	23,851,022	23,602,718

STATEMENTS OF OPERATIONS AND CO

STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Operating expenses:
Research and development	$ 16,440	$ 19,436
Sales and marketing	6,979	2,336
General and administrative	14,843	8,788
Total operating expenses	38,262	30,560
Loss from operations	(38,262)	(30,560)
Interest expense, net	(1,491)	(185)
Gain on Loan Forgiveness		647
Change in fair value of SAFEs		(10,390)
Loss before provision for (benefit from) income taxes	(39,753)	(40,488)
Provision for (benefit from) income taxes	7	(153)
Net loss	$ (39,760)	$ (40,335)
Net loss per share, basic	$ (1.69)	$ (3.11)
Net loss per share, diluted	$ (1.69)	$ (3.11)
Weighted-average number of shares outstanding, basic	23,557,846	12,982,472
Weighted-average number of shares outstanding, diluted	23,557,846	12,982,472

STATEMENTS OF STOCKHOLDERS' EQU

STATEMENTS OF STOCKHOLDERS' EQUITY (DEFICIT) - USD ($) $ in Thousands	Total	Common Stock	Additional Paid-in Capital	Accumulated Deficit
Beginning Balance at Dec. 31, 2020	$ (6,758)	$ 1	$ 24,649	$ (31,408)
Beginning Balance (in shares) at Dec. 31, 2020		11,146,510
Net Loss	(40,335)			(40,335)
Forfeiture of restricted stock (in shares)		(52,263)
Issuance of common stock in connection with business combination, net of issuance costs	83,126	$ 1	83,125
Issuance of common stock in connection with business combination, net of issuance costs (in shares)		12,505,471
Issuance of common stock under equity incentive plans	1		1
Issuance of common stock under equity incentive plans (in shares)		3,000
Share based compensation	686		686
Ending Balance at Dec. 31, 2021	36,720	$ 2	108,461	(71,743)
Ending Balance (in shares) at Dec. 31, 2021		23,602,718
Net Loss	(39,760)			(39,760)
Issuance of common stock under equity incentive plans	284		284
Issuance of common stock under equity incentive plans (in shares)		248,304
Share based compensation	1,857		1,857
Ending Balance at Dec. 31, 2022	$ (899)	$ 2	$ 110,602	$ (111,503)
Ending Balance (in shares) at Dec. 31, 2022		23,851,022

STATEMENTS OF STOCKHOLDERS' E_2

STATEMENTS OF STOCKHOLDERS' EQUITY (DEFICIT) (Parenthetical) $ in Thousands	12 Months Ended
	Dec. 31, 2021 USD ($)
Common Stock
Issuance costs	$ 16,724

STATEMENTS OF CASH FLOWS

STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss	$ (39,760)	$ (40,335)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	2,729	1,619
Change in fair value of SAFEs		10,390
Loss on write-off of property and equipment	9
Share-based compensation expense	1,824	646
Deferred income taxes	0	(152)
Gain on loan forgiveness		(647)
Changes in operating assets and liabilities:
Prepaid expenses and other assets	2,039	(4,613)
Accounts payable	1,512	1,009
Accrued expenses and other liabilities	2,717	1,265
Net cash used in operating activities	(28,930)	(30,818)
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of property and equipment	(106)	(55)
Capitalized internal-use software costs	(1,074)	(1,016)
Net cash used in investing activities	(1,180)	(1,071)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from issuance of SAFE notes		18,675
Proceeds from business combination and PIPE Investment		59,045
Payment of costs directly attributable to the issuance of common stock in connection with business combination and PIPE investment		(14,871)
Proceeds from issuance of long-term debt	5,000	10,000
Debt issuance costs		(518)
Proceeds from the issuance of shares under the employee stock purchase plan	257
Proceeds from exercise of stock options	27	1
Net cash provided by financing activities	5,284	72,332
Net change in cash and cash equivalents	(24,826)	40,443
Cash and cash equivalents, beginning of period	40,566	123
Cash and cash equivalents, end of period	15,740	40,566
Supplemental disclosures of cash flow information:
Cash paid for Interest	$ 1,325	$ 85

Organization and Description of

Organization and Description of Business	12 Months Ended
	Dec. 31, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Organization and Description of Business	1. Organization and Description of Business Better Therapeutics, Inc. (the "Company" or "Better"), a Delaware corporation, is a prescription digital therapeutics company developing a clinically validated, software-based novel form of cognitive behavioral therapy ("CBT") to address the root causes of cardiometabolic diseases ("CMDx"). The Company’s mission is to advance human health through the power of behavior change. The Company is developing a proprietary platform of U.S. Food and Drug Administration ("FDA)" regulated, software-based prescription digital therapeutics ("PDTs") for the treatment of cardiometabolic diseases by addressing the underlying causes of the diseases. The Company’s initial development efforts are focused on type 2 diabetes ("T2D"), hypertension, hyperlipidemia, non-alcoholic fatty liver disease ("NAFLD"), non-alcoholic steatohepatitis ("NASH") and chronic kidney disease ("CKD"). Founded in 2015, the Company is led by executives that have track records of building multi-billion dollar businesses and extensive industry experience in developing and commercializing therapeutics. The Company’s lead product candidate, BT-001, completed a first-in-class open label, randomized, controlled, parallel group clinical trial for the treatment of patients with T2D in July 2022 and successfully met its primary and secondary endpoints as well as a host of exploratory endpoints. The Company submitted a de novo classification request to the FDA in September 2022, seeking marketing authorization of BT-001 for the treatment of adult patients with T2D and in October 2022, the FDA notified the Company that its de novo classification request was accepted for substantive review. A portion of the Company’s data was published in the peer reviewed journal Diabetes Care in October 2022. As part of the typical de novo review process as expected by the Company, in February 2023, the Company received a Request for Additional Information from the FDA notifying it that, after review of the Company’s submission, the FDA determined that additional information is required and placed the review on hold. The letter outlined the FDA’s view that the Company’s submission has a number of deficiencies, classified into major and minor deficiencies. The Company requested a meeting with the FDA to clarify several of the major deficiencies noted as well as to seek guidance on its options to address them. That meeting also took place in February. During the meeting the FDA provided helpful context, clarifications and guidance, and the Company is now compiling its response to address the FDA’s comments. The Company believes it can address the FDA’s questions, and its previously provided guidance that it anticipates the FDA’s decision by the middle of 2023 remains unchanged. If the Company is unable to resolve the deficiencies, it may need to amend the indications for use for which it is seeking authorization and/or conduct another clinical trial, and the authorization and commercial launch of BT-001 could be significantly delayed or the authorization could be denied. The Company also achieved positive top-line results in its LivVita study, a first-ever clinical study evaluating the feasibility of its digitally delivered CBT to reduce liver fat and improve liver disease biomarkers as a potential treatment for NAFLD and NASH. Currently, there is no FDA approved treatment for these conditions, which affect one in four Americans and cause approximately $ 100 billion in direct medical costs annually. Because of the significant unmet medical need, the Company intends to apply for breakthrough device designation from the FDA for its investigational CBT-based treatment platform for these indications in the first half of 2023. The Company also plans to use data from this study and the exploratory endpoints from the BT-001 pivotal trial to inform the potential initiation of additional pivotal trials in support of seeking FDA authorization in CMDx indications beyond T2D. The Company also initiated real world evidence studies to evaluate the long-term effectiveness and healthcare utilization changes associated with the use of BT-001 for the treatment of T2D. The randomized, controlled, multi-site studies are expected to enroll patients for a treatment period of at least 12 months. Change in A1c and healthcare resource utilization will be evaluated and compared to usual care. Interim study results are expected to be reported in the fourth quarter of 2023, once a sufficient number of patients have completed an incremental 180 days of treatment. The study seeks to provide payers and providers with long-term data related to usage and outcomes in a real-world setting. We are a remote, "fully distributed" company, and do not have offices. Liquidity and Capital Resources The Company is in the development stage and its activities have consisted principally of raising capital and performing research and development. Since inception the Company has incurred significant losses from operations. As of December 31, 2022, the Company had cash of $ 15.7 million and an accumulated deficit of $ 111.5 million . The Company incurred a net loss of $ 39.8 million and used $ 28.9 million of cash in operating activities during the year ended December 31, 2022. The Company incurred a net loss of $ 40.3 million and used $ 30.8 million of cash in operating activities during the year ended December 31, 2021. The Company's primary use of cash is to fund operating expenses, which consist predominantly of research and development expenses related to its lead product candidate, BT-001, real world evidence programs and general and administrative expenses. Cash used to fund operating expenses is impacted by the timing of when the Company pays these expenses, as reflected in the change in its outstanding accounts payable and accrued expenses. The Company has incurred negative cash flows from operating activities and investing activities and significant losses from operations in the past. The Company expects to incur substantial expenses in the foreseeable future for the development and potential commercialization of its product candidates, ongoing internal research and development programs and general and administrative activities. At this time, the Company cannot reasonably estimate the nature, timing or aggregate amount of costs for its development, potential commercialization, internal research and development programs and general and administrative activities. However, in order to complete its planned product development, and to complete the process of obtaining regulatory authorization or clearance for its product candidates, as well as to build the sales, marketing and distribution infrastructure that it believes will be necessary to commercialize its product candidates, if approved, the Company will require substantial additional funding in the future. Under its current operating plan, the Company believes it has sufficient capital to fund its operations through the first quarter of 2023. These factors raise substantial doubt regarding the Company’s ability to continue as a going concern. The Company plans to seek additional funding through various financing sources, including the sale of our equity and/or debt securities, and it is exploring other non-dilutive options. If the Company is unable to obtain additional funding, or if it is unable to raise additional capital in sufficient amounts or on terms acceptable to it, the Company may have to significantly delay, reduce or terminate its product development programs or plans for commercialization. The Company could also be required to limit or terminate its operations, make reductions in its workforce, discontinue its development programs, liquidate all or portion of its assets or pursue other strategic alternatives. Significant Risks and Uncertainties The Company is subject to those risks common in its industry and also those risks common to early-stage companies including, but not limited to, the possibility of not being able to successfully develop or market its products, technological obsolescence, competition, dependence on key personnel, the successful protection of its proprietary technologies, compliance with government regulations, and the possibility of not being able to obtain additional financing when needed. At this time, there remains uncertainty relating to the COVID-19 pandemic and economic and political developments, including the conflict in Ukraine, rising interest and high inflation, and the impact of related responses. Any impact on the Company's business, results of operations and financial condition will largely depend on future developments, which are highly uncertain and cannot be predicted with confidence, such as the duration of the pandemic, business disruptions and the ultimate impact of COVID-19 and economic and political developments on financial markets and the global economy.

Summary of Significant Accounti

Summary of Significant Accounting Policies	12 Months Ended
	Dec. 31, 2022
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	2. Summary of Significant Accounting Policies Basis of Presentation The financial statements and accompanying notes have been prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP"). Amounts are presented in thousands except share and per share information. Comprehensive Loss For the years ended December 31, 2022 and 2021 , there was no difference between comprehensive loss and net loss. Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make certain estimates, judgments, and assumptions that affect the reported amounts of assets and liabilities and the related disclosures at the date of the financial statements, as well as the reported amounts of revenue and expenses during the periods presented. The estimates and assumptions used in the accompanying financial statements are based upon management’s evaluation of the relevant facts and circumstances. Such estimates, judgments, and assumptions include estimated costs for capitalized internal-use software, fair values of stock-based awards, valuation allowance for deferred tax assets and fair value of SAFEs. Actual results could be different from these estimates. To the extent there are material differences between these estimates, judgments, or assumptions and actual results, the Company's financial statements will be affected. Emerging Growth Company Status The Company is an emerging growth company, as defined in the Jumpstart Our Business Startups Act of 2012 (the "JOBS Act"). The JOBS Act provides that an emerging growth company can take advantage of the extended transition period for complying with new or revised accounting standards. Thus, an emerging growth company can delay the adoption of certain accounting standards until those standards would otherwise apply to private companies. The Company has elected to avail itself of this extended transition period and, as a result, it does not adopt new or revised accounting standards on the relevant dates on which adoption of such standards is required for other public companies until required by private company accounting standards. Concentration of Risk Financial instruments that potentially subject the Company to credit risk consist principally of cash and cash equivalents. The Company maintains its cash primarily with domestic financial institutions of high credit quality, which may exceed federal deposit insurance corporation limits. The Company invest its cash equivalents in highly rated money market funds. The Company has not experienced any losses in such accounts. The Company believes it is not exposed to any significant credit risk on cash and cash equivalents and perform periodic evaluations of the credit standing of such institutions. Fair Value Measurements The carrying value of the Company's financial instruments, including cash equivalents, accounts payable, accrued liabilities and notes payable approximates fair value due to their short-term nature. The Company’s investment portfolio consists of money market funds, which are carried at fair value. The Company has determined the carrying value to be equal to the fair value and has classified these investments as Level 1 financial instruments. The Company measures financial assets and liabilities at fair value at each reporting period using a fair value hierarchy that requires the use of observable inputs and minimizes the use of unobservable inputs. The Company defines fair value as the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Fair value is estimated by applying the following hierarchy, which prioritizes the inputs used to measure fair value into three levels and bases the categorization within the hierarchy upon the lowest level of input that is available and significant to the fair value measurement: • Level 1 — Quoted prices in active markets for identical assets or liabilities. • Level 2 — Observable inputs other than quoted prices in active markets for identical assets and liabilities, quoted prices for identical or similar assets or liabilities in inactive markets, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. • Level 3 — Inputs that are generally unobservable and typically reflect management’s estimate of assumptions that market participants would use in pricing the asset or liability. Property and Equipment, Net Property and equipment, net, which include computer equipment and software are stated at cost, less accumulated depreciation. Depreciation is calculated using the straight-line method over the estimated useful life of 3 years . Expenditures for repairs and maintenance are expensed in the period incurred. Capitalized Internal-Use Software Costs Costs incurred to develop software and our platform for internal use consist primarily of direct employee-related and third-party contractor costs and are accounted for pursuant to ASC 350-40, Internal Use Software . Costs incurred during the preliminary planning and evaluation stage of the project are expensed as incurred. Costs incurred during the application development stage of the project are capitalized and amortized over an estimated useful life of 3 years . Impairment of Long-Lived Assets The Company reviews long-lived assets for impairment when circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of these assets is measured by a comparison of the carrying amounts to the sum of the future undiscounted cash flows the assets are expected to generate over the remaining useful lives of the assets. If a long-lived asset fails a recoverability test, the Company measures the amount by which the carrying value of the asset exceeds its fair value. There were no events or changes in business circumstances during the twelve months ended December 31, 2022 and 2021 that indicated the carrying amounts of any long-lived assets were not fully recoverable. Advertising Expense The Company recognizes advertising expenses as they are incurred, and such costs are included in sales and marketing expense in the statements of operations. During the twelve months ended December 31, 2022 and 2021, advertising expense totaled $ 4 thousand and $ 2 thousand, respectively. Equity-Based Compensation Expense The Company accounts for equity-based compensation arrangements granted to employees in accordance with ASC 718, "Compensation: Stock Compensation", by measuring the grant date fair value of the award and recognizing the resulting expense over the period during which the employee is required to perform service in exchange for the award. Equity-based compensation expense is only recognized for awards subject to performance conditions if it is probable that the performance condition will be achieved. The Company accounts for equity-based compensation arrangements issued to non-employees using the fair value approach prescribed by ASU 2018-07, "Compensation-Stock Compensation (ASC 718): Improvements to Non-employee Share-Based Payment Accounting". The value of non-employee equity-based compensation is measured at the grant date using a fair value-based measure. The fair value of each option award granted is estimated on the grant date. The grant date fair value of options with service based vesting conditions is determined using the Black-Scholes option pricing model. The Black-Scholes option pricing model requires the input of subjective assumptions, including the fair value of the underlying common stock, the expected term of the option, the expected volatility of the price of the Company's common stock, risk-free interest rates, and the dividend yield of the Company's common stock. The grant date fair value of options with performance-based market conditions is determined using a Monte-Carlo valuation simulation. • Fair Value of Common Stock — The Company determines the fair value of common stock based on the closing price of our common stock on the date of the grant. • Expected term — The expected term represents the period that the equity-based awards are expected to be outstanding. The Company determines the expected term using the simplified method. The simplified method deems the term to be the average of the time-to-vesting and the contractual life of the options. For stock options granted to non-employees, the expected term equals the remaining contractual term of the option from the vesting date. • Expected volatility — As the Company had no trading history for its common stock when we granted our option awards prior to the Business Combination (as defined below), the expected volatility was estimated by taking the average historic price volatility for industry peers, consisting of several public companies in our industry that are either similar in size, stage, or financial leverage, over a period equivalent to the expected term of the awards. Due to its limited trading history, the Company will continue to determine expected volatility using estimates of industry peers. • Risk-free interest rate — The risk-free interest rate is calculated using the average of the published interest rates of U.S. Treasury zero-coupon issues with maturities that are commensurate with the expected term. • Expected dividend yield — The dividend yield assumption is zero as the Company has no history of or plans to make dividend payments. The grant date fair value of options with performance-based market conditions is determined using a Monte-Carlo valuation simulation. For awards that vest based on service conditions and market conditions, the Company uses the straight-line method to recognize compensation expense over the respective service period. For awards that contain performance conditions, the Company determines the appropriate amount to expense based on the anticipated achievement of performance targets, which requires judgment, including forecasting the achievement of future specified targets. At the date performance conditions are determined to be probable of achievement, the Company records a cumulative expense catch-up, with remaining expense amortized over the remaining service period. Throughout the performance period, the Company re-assesses the estimated performance and updates the number of performance-based awards that the Company believes will ultimately vest. Discounted stock purchases under the Better Therapeutics, Inc. 2021 Employee Stock Purchase Plan (the "ESPP") are valued on the first date of the offering period using the Black-Scholes option-pricing model to compute the fair value of the lookback provision plus the purchase discount. Discounted stock purchases under the ESPP are recognized over the offering period. The Company accounts for forfeitures when they occur. For awards forfeited before completion of the requisite service period, previously recognized compensation cost is reversed in the period the award is forfeited. Income Taxes The Company accounts for income taxes using the asset and liability method under which deferred tax assets and liabilities are determined based on the differences between the financial reporting and tax bases of assets and liabilities with consideration given to net operating losses and tax credit carryforwards. Deferred tax assets and liabilities are measured using the enacted tax rates that are expected to be in effect when the differences are expected to reverse. The Company assesses the likelihood that deferred tax assets will be recovered from future taxable income and a valuation allowance is established when necessary to reduce deferred tax assets to the amounts more likely than not expected to be realized. The Company adopted Accounting Standards Update ("ASU") No. 2015-17, Income Taxes — Balance Sheet Classification of Deferred Taxes, and classified its deferred income taxes as non-current in the balance sheets. The Company recognizes and measures uncertain tax positions using a two-step approach. The first step is to evaluate the tax position taken or expected to be taken by determining if the weight of available evidence indicates that it is more likely than not that the tax position will be sustained in an audit, after resolution of any related appeals or litigation processes. The second step is to measure the tax benefit as the largest amount that is more than 50% likely to be realized upon ultimate settlement. Significant judgment is required to evaluate uncertain tax positions. The Company evaluates its uncertain tax positions on a regular basis. The Company's evaluations are based on a number of factors, including changes in facts and circumstances, changes in tax law, correspondence with tax authorities during the course of the audit, and effective settlement of audit issues. Net Loss Per Share Attributable to Common Stockholders Basic and diluted net loss per share calculations are presented in accordance with Financial Accounting Standards Board ("FASB") ASC Topic No. 260 Earnings per Share and are calculated on the basis of the weighted average number of common shares outstanding during the period. Diluted per share calculations includes the dilutive effect of common stock equivalents in years with net income. As the Company has reported net losses for all periods presented, all potentially dilutive securities are antidilutive and, accordingly, basic net loss per share equals diluted net loss per share. Revenue Recognition On January 1, 2020, the Company adopted the requirements of Accounting Standards Update ("ASU") No. 2014-09, Revenue from Contracts with Customers (Topic 606) ("ASC 606"). ASC 606 establishes a principle for recognizing revenue upon the transfer of promised goods or services to customers, in an amount that reflects the expected consideration received in exchange for those goods or services. The adoption of ASC 606 also requires the adoption of ASC Subtopic 340-40, Other Assets and Deferred Costs-Contracts with Customers, which provides for the deferral of certain incremental costs of obtaining a contract with a customer. Collectively, references to ASC 606 used herein refer to both ASC 606 and Subtopic 340-40. The core principle of ASC 606 is to recognize revenue to depict the transfer of promised goods or services to clients in an amount that reflects the consideration the entity expects to be entitled in exchange for those goods or services. This principle is achieved through applying the following five-step approach: • Identification of the contract, or contracts, with a client. • Identification of the performance obligations in the contract. • Determination of the transaction price. • Allocation of the transaction price to the performance obligations in the contract • Recognition of revenue when, or as, the Company satisfies a performance obligation. Segment Reporting The Company operates as one operating segment as it only reports financial information on an aggregate basis to the Chief Executive Officer, its chief operating decision maker, who regularly reviews financial operating results for purposes of allocating resources and evaluating financial performance. There are no segment managers who are held accountable for operations, operating results, and plans for components or types of products or services below the unit level. As of December 31, 2022 , all long-lived assets were in the United States. Recent Accounting Pronouncements In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842), which modifies lease accounting for lessees to increase transparency and comparability by recording lease assets and liabilities for operating leases and disclosing key information about leasing arrangements. In July 2018, the FASB issued ASU No. 2018-10, Codification Improvements to Topic 842, Leases, and ASU No. 2018-11, Leases (Topic 842), Targeted Improvements, which affect certain aspects of the previously issued guidance. In December 2018, the FASB issued ASU No. 2018-20, Narrow-Scope Improvements for Lessor, Leases (Topic 842), which provides guidance on sales tax and other taxes collected from lessees. In December 2019, the FASB issued ASU No. 2019-01, Codification Improvements to Topic 842, Leases, which affect certain aspects of the previously issued guidance. Amendments include an additional transition method that allows entities to apply the new standard on the adoption date and recognize a cumulative effect adjustment to the opening balance of retained earnings, as well as a new practical expedient for lessors. The Company's adoption of this new standard on January 1, 2021 did no t have a material impact on our financial statements. In December 2019, the FASB issued ASU No. 2019-12, Simplifying the Accounting for Income Taxes (Topic 740). This ASU simplifies the accounting for income taxes by, among other things, eliminating certain existing exceptions related to the general approach in ASC 740 relating to franchise taxes, reducing complexity in the interim-period accounting for year-to-date loss limitations and changes in tax laws, and clarifying the accounting for transactions outside of business combination that result in a step-up in the tax basis of goodwill. The transition requirements are primarily prospective, and the effective date is January 1, 2021. The Company's adoption of this new standard on January 1, 2021 did no t have a material impact on our financial statements. In August 2020, the FASB issued ASU 2020-06, Debt — Debt with Conversion and Other Options (ASC 470-20) and Derivatives and Hedging — Contracts in Entity’s Own Equity (ASC 815-40) . ASU 2020-06 simplifies the accounting for certain financial instruments with characteristics of liabilities and equity, including convertible instruments and contracts on an entity’s own equity. The ASU 2020-06 is part of the FASB’s simplification initiative, which aims to reduce unnecessary complexity in GAAP. This ASU’s amendments are effective for fiscal years beginning after December 15, 2023, and interim periods within those fiscal years. The Company is currently evaluating the impact ASU 2020-06 will have on its financial statements. The Company has implemented all new accounting pronouncements that are in effect and that may impact its financial statements and does not believe that there are any other new accounting pronouncements that have been issued that might have a material impact on its financial position or results of operations.

Business Combination

Business Combination	12 Months Ended
	Dec. 31, 2022
Business Combinations [Abstract]
Business Combination	3. Business Combination On April 6, 2021, the Company entered into a merger agreement (the "Merger Agreement") with Mountain Crest Acquisition Corp. II, ("MCAD"), a special purpose acquisition company. In connection with the merger agreement, MCAD entered into subscription agreements (the "Subscription Agreements") dated as of April 6, 2021 , with certain institutional and accredited investors (the "PIPE Investors"), pursuant to which, among other things, MCAD agreed to issue and sell, in a private placement immediately prior to the closing of the Business Combination, an aggregate of 5.0 million shares of Common Stock for $ 10.00 per share (the "PIPE Shares"). On October 28, 2021, pursuant to the terms of the Merger Agreement, MCAD merged with and into former Better Therapeutics, Inc, ("Legacy BTX"), with Legacy BTX surviving as a wholly owned subsidiary of MCAD with the new name Better Therapeutics, Inc. (the "Business Combination"). The Company raised $ 59 million in funding upon the completion of the merger with MCAD. Under the merger Agreement, MCAD acquired all of the outstanding shares of Legacy BTX in exchange for 15.2 million shares of MCAD. In connection with the merger, MCAD was renamed Better Therapeutics, Inc. The Company accounted for the Business Combination as a reverse recapitalization, which is the equivalent of Legacy BTX issuing stock for the net assets of MCAD, accompanied by a recapitalization, with MCAD treated as the acquired company for accounting purposes. The determination of MCAD as the "acquired" company for accounting purposes was primarily based on the fact that subsequent to the Business Combination, Legacy BTX had a majority of the voting power of the combined company, Legacy BTX would comprise all of the ongoing operations of the combined entity, a majority of the governing body of the combined company and Legacy BTXs' senior management would comprise all of the senior management of the combined company. The net assets of MCAD were stated at historical cost with no goodwill or other intangible assets recorded. Reported results from operations included herein prior to the Business Combination are those of Legacy BTX. The shares and corresponding capital amounts and loss per share related to Legacy BTX's outstanding redeemable convertible preferred stock, redeemable convertible common stock and common stock prior to the Business Combination have been retroactively restated to reflect the exchange ratio established in the Business Combination of 0.9475 . In connection with the Business Combination, the Company incurred underwriting fees and other costs considered direct and incremental to the transaction totaling $ 16.7 million consisting of legal, accounting, financial advisory and other professional fees. PIPE Financing (Private Placement) Concurrent with the execution of the Business Combination Agreement, The Company entered into subscription agreements with MCAD. Pursuant to the Subscription Agreements, each PIPE Investor subscribed for and purchased, and MCAD issued and sold to such investors, an aggregate of 5,000,000 shares of MCAD's common stock for a purchase price of $ 10.00 per share, for aggregate gross proceeds of $ 50.0 million (the "PIPE Financing"). The Compan y received $ 9.5 million of MCAD cash and cash held in trust for net proceeds of $ 42.8 million. In addition, the Company also assumed $ 43 thousand of prep aid assets and $ 245 thousand of accrued liabilities upon the closing of the Business Combination.

Property and Equipment, Net

Property and Equipment, Net	12 Months Ended
	Dec. 31, 2022
Property, Plant and Equipment [Abstract]
Property and Equipment, Net	4. Property and Equipment, net Property and equipment consisted of the follow: December 31, 2022 2021 Computer, equipment and software $ 178 $ 155 Furniture and fixtures — 155 Property and equipment 178 310 Less: accumulated depreciation ( 57 ) ( 228 ) Property and equipment, net $ 121 $ 82 Depreciation expense for the twelve months ended December 31, 2022 and 2021 was $ 58 thousand and $ 62 thousand, respectively. All of the Company’s long-lived assets are located in the United States.

Capitalized Internal Use Softwa

Capitalized Internal Use Software	12 Months Ended
	Dec. 31, 2022
Research and Development [Abstract]
Capitalized Internal Use Software	5. Capitalized Internal Use Software Capitalized internal use software and accumulated amortization were as follows: December 31, 2022 2021 Gross carrying amount $ 7,718 $ 6,611 Accumulated amortization ( 3,830 ) ( 1,534 ) Capitalized internal-use software, net $ 3,888 $ 5,077 The Company has recorded amortization expense related to capitalized internal-use software of $ 2.3 million and $ 1.5 million for the twelve months ended December 31, 2022 and 2021 , respectively.

Research and Development Payrol

Research and Development Payroll Tax Credits	12 Months Ended
	Dec. 31, 2022
Research and Development [Abstract]
Research and Development Payroll Tax Credits	6. Research and Development Payroll Tax Credits As of December 31, 2022 and 2021 , the Company had research and development payroll tax credit receivables of $ 45 thousand and $ 351 thousand, respectively reflected in other current assets.

Accrued Liabilities

Accrued Liabilities	12 Months Ended
	Dec. 31, 2022
Payables and Accruals [Abstract]
Accrued Liabilities	7. Accrued Liabilities December 31, 2022 2021 Due to service providers $ 1,335 $ 878 Due to professionals 506 542 Financed insurance 963 361 Accrued interest 168 77 Other 654 - Other accrued liabilities $ 3,626 $ 1,858

Debt

Debt	12 Months Ended
	Dec. 31, 2022
Debt Disclosure [Abstract]
Debt	8. Debt On May 9, 2020 (the "Origination Date"), the Company received $ 640 in aggregate loan proceeds (the "PPP Loan") from Celtic Bank Corporation (the "Lender") pursuant to the Paycheck Protection Program established under the Coronavirus Aid, Relief, and Economic Security Act of 2020 (the "CARES Act"). Payments of principal and interest were deferred for the first ten months following the Origination Date, and the PPP Loan would mature in two years after the Origination Date. The PPP Loan bore interest at 1 %. On December 30, 2020, the Company applied for loan forgiveness under the CARES Act and received approval of loan forgiveness in May 2021. As a result, the Company has recorded a gain on loan forgiveness on the statements of operations and comprehensive loss and removed the balance from long-term debt on the balance sheet. The gain recognized totaled $ 647 , represented the principal balance and accrued interest at the date of forgiveness. On August 18, 2021, the Company entered into a secured term loan agreement (the "Loan Agreement") with Hercules Capital, Inc. ("Hercules Capital") providing for an up to $ 50 million senior secured term loan facility (the "Term Loan Facility"). The Term Loan Facility has a maturity date of August 1, 2025 , which can be extended to February 1, 2026 , and is secured by substantially all of the Company's assets. Payments due for the term loan are interest-only until March 1, 2023 (subject to extension to September 1, 2023 or September 1, 2024 upon the achievement of certain milestones), after which principal shall be repaid in equal monthly installments. Interest is payable monthly in arrears. The outstanding principal bears interest at the greater of (a) 8.95 % or (b) 8.95 % plus the prime rate minus 3.25 %. Prepayment of the outstanding principal is permitted under the Loan Agreement and subject to certain prepayment fees. The Company incurred $ 518 thousand of debt issuance costs related to the borrowings under the Loan Agreement. Debt issuance costs are being amortized through the maturity date of the Term Loan Facility and are reported as a direct reduction of long-term debt on the balance sheets. In addition, the Company will be required to pay an end of term charge of the greater of (a) $ 893 and (b) 5.95 % of the aggregate outstanding principal upon repayment of the loan. The Company is accruing this end of term charge over the term of the Term Loan Facility and the accrued balance is reported as a direct addition to the long-term balance on the balance sheets. Amortization expense related to the debt issuance costs and accretion of the end of term charge, are both included in interest expense, net on the accompanying statements of operations and comprehensive loss and totaled $ 376 thousand and $ 23 thousand for the twelve months ended December 31, 2022 and 2021 , respectively. The Company is permitted to borrow the loans in four tranches based on the completion of certain milestones which include, as set forth more fully in the Loan Agreement: (i) $ 15.0 million upon the closing of the Business Combination, (ii) $ 10.0 million when the Company achieves certain positive clinical trial results sufficient to submit a de-novo classification request with respect to BT-001 and has initiated a second pivotal trial prior to September 15, 2022, (iii) $ 10.0 million when the Company has received FDA approval for the marketing of BT-001 for the improvement of glycemic control and initiated a pivotal trial for a new indication in people with type 2 diabetes and received, prior to March 15, 2023, net cash proceeds of at least $ 40.0 million from equity financings, and (iv) $ 15.0 million on or before June 15, 2023, subject to Hercules Capital's approval. In October 2021, the Company borrowed $ 10.0 million under the Loan Agreement. In May 2022, the Company borrowed $ 5.0 million under the Loan Agreement. The Company did not initiate a second pivotal trial prior to September 15, 2022 that was required under the Loan Agreement, and as a result the associated borrowing is no longer available to the Company. As of December 31, 2022 and 2021, the outstanding debt balance, net of unamortized debt issuance costs and including the accrued end of term charge was $ 10.3 million and $ 9.5 million, respectively. The interest rate was 13.2 % and 8.95 % as of December 31, 2022 and 2021, and there was $ 168 thousand and $ 77 thousand of accrued interest included in other liabilities on the accompanying balance sheets as of December 31, 2022 and 2021, respectively. The Loan Agreement contains customary representations, warranties, financial and non-financial covenants, and events of default. The Loan Agreement also contains subjective acceleration clauses. In the event a subjective acceleration clause is invoked, the outstanding principal, interest, end of term charge and prepayment penalty would become payable on demand by the lender. The lender has not invoked any of the subjective acceleration clauses as of the date of issuance of these financial statements. As disclosed in Note 1, the Company's liquidity and capital resource issues could lead to the failure of a financial covenant in the year ending December 31, 2023 without additional funding. Future payments on long-term debt as of December 31, 2022 are as follows: Fiscal year ending December 31, Amount 2023 4,532 2024 6,023 2025 4,445 Total debt 15,000 Less current portion long-term debt ( 4,532 ) Less unamortized debt issuance costs ( 360 ) Accrued end of term charge 240 Total long-term debt, net of current portion and debt issuance costs $ 10,348

SAFE Agreements

SAFE Agreements	12 Months Ended
	Dec. 31, 2022
Simple Agreements For Future Equity Disclosure [Abstract]
SAFE Agreements	9. SAFE Agreements Beginning in 2020, the Company issued Simple Agreements for Future Equity ("SAFEs") to fund its operations. The SAFEs included a provision allowing for cash redemption upon the occurrence of a change of control, the occurrence of which is outside the control of the Company. Therefore, the SAFEs were classified as marked-to-market liabilities, pursuant to ASC 480, in other long-term liabilities. The fair value of the Company's SAFE agreements was based on significant inputs not observable in the market which caused the instruments to be classified as Level 3 measurement within the fair value hierarchy. During the year ended December 31, 2021, the SAFEs were marked to fair value resulting in a change in fair value reported as a loss of $ 10.4 million. On October 28, 2021, in connection with the Business Combination all SAFEs were converted to common stock.

Shareholders_ Deficit

Shareholders’ Deficit	12 Months Ended
	Dec. 31, 2022
Stockholders' Equity Note [Abstract]
Shareholders’ Deficit	10. Shareholders’ Deficit Common Stock On October 28, 2021 in connection with the Business Combination all existing outstanding shares of common stock of Legacy BTX were exchanged for new shares of common stock of the Company at a conversion ratio of 0.9475 % with a par value of $ 0.0001 per share. The Company accounted for the Business Combination as a reverse capitalization, and as a result the conversion of common shares was presented as of the earliest period presented with 11,146,510 shares of common stock issued and outstanding as of December 31, 2020. The number of shares of common stock issued and outstanding as of December 31, 2022 and 2021 was 23,851,022 and 23,602,718 , respectively.

Net Loss Per Share Attributable

Net Loss Per Share Attributable to Common Shareholders	12 Months Ended
	Dec. 31, 2022
Earnings Per Share [Abstract]
Net Loss Per Share Attributable to Common Shareholders	11. Net Loss Per Share Attributable to Common Stockholders The following table sets forth the computation of basic and diluted loss (in thousands, except for share and per share amounts): Year Ended December 31, 2022 2021 Net Loss $ ( 39,760 ) $ ( 40,335 ) Weighted-average number of shares of common stock outstanding 23,695,503 13,351,866 Less: weighted-average shares of common stock subject to vesting ( 137,657 ) ( 369,394 ) Weighted-average shares of common stock outstanding used in the calculation of basic and diluted net loss per share attributable to shareholders 23,557,846 12,982,472 Net Loss per share, basic and diluted $ ( 1.69 ) $ ( 3.11 ) As of December 31, 2022 and 2021 3,999,223 and 1,476,475 potentially dilutive stock options have been excluded from the computation of diluted weighted average shares outstanding, as they would be antidilutive.

Share-Based Compensation

Share-Based Compensation	12 Months Ended
	Dec. 31, 2022
Share-Based Payment Arrangement [Abstract]
Share-Based Compensation	12. Share-Based Compensation In August 2020, the Company adopted the Better Therapeutics, Inc. 2020 Stock Option and Grant Plan (the "2020 Plan") to grant equity-based incentives to officers, directors, consultants and employees. The equity-based incentives include Incentive Stock Options, Non-Qualified Stock Options, Restricted Stock Awards, Unrestricted Stock Awards, and Restricted Stock Units. A total of 807 thousand shares of the Company's common stock have been reserved for issuance pursuant to the plan. Upon the close of the Business Combination, no further shares will be issued out of the 2020 Plan. In October 2021, the Company adopted the Better Therapeutics OpCo. Inc., 2021 Stock Option and Incentive Plan (the "2021 Plan") to grant equity based incentive to officers, directors, consultants and employees. The equity-based incentives include, Incentive Stock Options, Non-Qualified Stock Options, Stock appreciation rights, Restricted Stock Awards, Restricted Stock Units, Unrestricted Stock Awards, Cash-based Awards and Dividend Equivalent Rights. A total of 3.6 million shares of common stock have been initially reserved for issuance. Additionally, on January 1, 2022 and each January 1 thereafter, the number of shares of common stock reserved and available for issuance under the 2021 Plan shall be cumulatively increased by five percent ( 5 %) of the number of shares of common stock issued and outstanding on the immediately preceding December 31, or such lesser number of shares as approved by the Administrator of the 2021 Plan (the "Annual Increase"). On January 1, 2023 the Company added 1.2 million shares to the plan for a total reserved for issuance of 3.0 million shares. In October 2021, the Company adopted the ESPP to provide eligible employees with opportunities to purchase shares of the Company's common stock. A total of 280 thousand shares of common stock were initially reserved for issuance. Additionally, on January 1, 2022 and each January 1 thereafter, the number of shares of common stock reserved for issuance under the ESPP shall be cumulatively increased by the lesser of (i) 560,000 shares of common stock, (ii) one percent ( 1 %) of the number of shares of common stock issued and outstanding on the immediately preceding December 31, or (iii) such lesser number of shares of common stock as determined by the Administrator of the ESPP. On January 1, 2023 the Company added 238,510 shares to the plan for a total reserved for issuance of 566,753 shares. In November 2022, the Company adopted the Better Therapeutics, Inc 2022 Inducement Plan (the "Inducement Plan") to grant equity awards to prospective officers and employees who are not currently employed by the Company. The equity-based incentives include non-qualified stock options, stock appreciation rights, restricted stock awards, restricted stock units, unrestricted stock awards and dividend equivalent rights. A total of 600,000 shares of common stock have been initially reserved for issuance under the Inducement Plan. Stock Options Stock options are exercisable for periods not to exceed 10 years, and vest and contain such other terms and conditions as specified in the applicable award document. Stock options granted with service conditions generally vest over four year s with 25 % of the option shares vesting one year from the vesting commencement date and then ratably on a monthly basis over the following 36 months . The Company has also issued optio ns with performance-based and market-based vesting conditions. Stock option activity for the periods presented is as follows: Options Outstanding Weighted Shares Weighted- Average Subject to Average Remaining Aggregate Options Exercise Contractual Intrinsic Outstanding Price Life (Years) Value Balance as of December 31, 2021 1,476,475 $ 9.35 9.4 $ 884 Granted 3,595,838 1.88 Exercised ( 60,520 ) 0.50 Forfeited ( 1,012,570 ) 4.66 Balance as of December 31, 2022 3,999,223 $ 3.95 9.3 $ 64 Aggregate intrinsic value represents the difference between the exercise price and the fair value of the shares underlying common stock. The weighted-average grant date fair value of stock options granted to employees during the twelve months ended December 31, 2022 and 2021 was $ 0.73 and $ 3.60 per share, respectively. As of December 31, 2022, total unrecognized compensation expense related to unvested stock options was $ 3.4 million, which is expected to be recognized over a weighted-average period of 2.92 years. The fair value of each option award granted to employees is estimated on the grant date using the Black- Scholes option pricing model. The Black-Scholes option pricing model requires the input of subjective assumptions, including the fair value of the underlying common stock, the expected term of the option, the expected volatility of the price of our common stock, risk-free interest rates, and the dividend yield of the Company's common stock. The assumptions used to determine the fair value of the option awards represent our best estimates. These estimates involve inherent uncertainties and the application of the Company's judgment. The related stock-based compensation expense is recognized on a straight-line basis over the requisite service period of the awards, which is generally four years . The Black-Scholes option pricing model assumptions used in evaluating our awards to employees are as follows: Year Ended Year Ended December 31, December 31, 2022 2021 Expected Term (Years) 6.09 6.02 Expected Volatility 41.0 % 42.0 % Risk-free interest rate 2.74 % 1.22 % Dividend Yield — — In July 2022, the Company granted options with performance-based vesting conditions to the Company's new Chief Executive Officer ("CEO"), which entitle the CEO with the right to purchase shares of common stock upon achievement of the Company's common stock reaching specified market prices for consecutive 90 day periods, the achievement of certain revenue and/or other targets as defined in the award agreements. The performance-based market awards consist of two separate specified award values that vest upon achievement of applicable performance goals, which can result in a vesting range of up to 1,850,000 shares in the aggregate. As of December 31, 2022, the performance-based conditions for the awards to the CEO have not been met. The related stock-based compensation expense is being recognized over a period of 8.0 years. The total grant date fair value of performance-based market condition share awards granted during the twelve months ended December 31, 2022 was $ 31 thousand. The estimated fair values of these awards was determined using a Monte-Carlo valuation simulation, with the following most significant assumptions: Year Ended December 31, 2022 Valuation date stock price 1.68 Valuation date to end of performance period (Years) 10.00 Expected Volatility 38.8 % Risk-free interest rate 2.80 % Dividend Yield — Restricted Stock During the twelve months ended December 31, 2022 , 172 thousand shares of common stock vested and converted into unrestricted common stock. During the twelve months ended December 31, 2021 52,263 shares were forfeited and 235,634 shares vested and were converted into unrestricted common stock. As of December 31, 2022 there were 30 thousand shares of restricted stock outstanding. Total stock-based compensation expense for time-based restricted stock of $ 13 thousand is expected to be recognized on a straight-line basis over approximately the next 0.5 years for the unvested restricted stock outstanding as of December 31, 2022. Employee Stock Purchase Plan The ESPP enables eligible employees to purchase the Company's common stock at a price per share equal to the lesser of 85 % of the fair market value of the common stock at the beginning or end of each 24 month offering period. Each offering period will be divided into four purchase periods. The first offering period commenced on February 15, 2022 . During the twelve months ended December 31, 2022 the Company issued 187,784 shares and recorded $ 134 thousand of expense in connection with the ESPP. Equity-Based Compensation Expense Equity-based compensation expense in the statement of operations is summarized as follows: Year Ended December 31, 2022 2021 Research and development $ 555 $ 250 Sales and marketing ( 7 ) 6 General and administrative 1,276 390 Total equity-based compensation expense $ 1,824 $ 646 For the twelve months ended December 31, 2022 and 2021 , $ 33 thousand and $ 40 thousand of stock based compensation expense was included as part of capitalized internal-use software costs, respectively.

Income Taxes

Income Taxes	12 Months Ended
	Dec. 31, 2022
Income Tax Disclosure [Abstract]
Income Taxes	13. Income Taxes The Company recorded an income tax provision of $ 7 thousand for the period ended December 31, 2022 . The Company recorded an income tax benefit of $ 153 thousand for period ended December 31, 2021 . The Company's provision for (benefit from) income taxes consisted of the following: December 31, 2022 2021 Current: Federal $ — $ — State 7 ( 1 ) Total current 7 ( 1 ) Deferred: Federal — ( 152 ) State — — Total deferred — ( 152 ) Total provision for (benefit from) income taxes $ 7 $ ( 153 ) The reconciliation of federal statutory income tax rate to the Company's effective income tax rate is as follows: Year Ended December 31, 2022 2021 Expected income tax benefit at the federal statutory rate $ ( 8,421 ) $ ( 8,502 ) State taxes, net of federal benefit ( 80 ) ( 42 ) Research and development credit, net — — Deferred tax true up 14 — Non-deductible items 135 2,129 Change in valuation allowance 8,359 6,262 Total $ 7 $ ( 153 ) Significant components of the Company's deferred tax assets are summarized as follows: December 31, 2022 2021 Deferred tax assets: Federal and state new operating loss carryforwards $ 12,025 $ 6,844 Research and development tax credits 207 207 Depreciation and amortization 12 25 Stock based compensation 277 55 Section 174 costs 2,613 — Accruals and reserves 394 284 Gross deferred tax assets $ 15,528 7,415 Less Valuation allowance ( 14,706 ) ( 6,347 ) Net deferred tax assets $ 822 $ 1,068 Deferred tax liabilities: Capitalized internal use software ( 822 ) ( 1,068 ) Net deferred tax liabilities ( 822 ) ( 1,068 ) Net deferred tax liability $ — $ — As of December 31, 2022 , the Company had $ 56.8 million of federal and $ 3.0 million of state net operating loss carryforwards available to offset future taxable income. Carryforwards for the current period and future years do not expire for federal purposes and begin to expire in 2035 for state purposes. As of December 31, 2022 , the Company had federal and state research credit carryforwards of $ 122 thousand and $ 85 thousand, respectively, net of any reserve for uncertain tax positions under ASC 740-10. The federal research credits begin to expire in 2040 while the California research credits carry forward have an indefinite life. Management regularly assesses the ability to realize deferred tax assets recorded based upon the weight of available evidence, including such factors as recent earnings history and expected future taxable income on a jurisdiction-by-jurisdiction basis. In the event that the Company changes its determination as to the amount of realizable deferred tax assets, the Company will adjust its valuation allowance with a corresponding impact to the provision for income taxes in the period in which such determination is made. The Company’s management believes that, based on a number of factors, it is more likely than not, that all or some portion of the deferred tax assets will not be realized; and accordingly, for the year ended December 31, 2022, the Company has provided a valuation allowance against the Company’s U.S. net deferred tax assets. The net change in the valuation allowance for the year ended December 31, 2022 was an increase of $ 8.4 million. The Internal Revenue Code of 1986, as amended (the "Code"), imposes restrictions on the utilization of net operating losses in the event of an "ownership change" of a corporation. Accordingly, a company’s ability to use net operating losses may be limited as prescribed under Section 382 of the Code ("IRC Section 382"). Events which may cause limitations in the amount of the net operating losses that the Company may use in any one year include, but are not limited to, a cumulative ownership change of more than 50 % over a three-year period. Utilization of the federal and state net operating losses may be subject to substantial annual limitation due to the ownership change limitations provided by the IRC Section 382 and similar state provisions. The Company has not completed a Section 382 analysis; however, based on a preliminary review of information available, other than the NOL attributes that were carried forward from the Business Combination, which are approximately $ 77 thousand at December 31, 2022, the Company does not believe it has experienced an ownership change and therefore none of its tax attributes are currently limited by IRC Section 382 or 383. On March 27, 2020, the CARES Act was passed into law. The CARES Act includes several significant business tax provisions including modification to the taxable income limitation for utilization of net operating losses incurred in 2019 and 2020, an increase to the limitation on deductibility of certain business interest expense, bonus depreciation for purchases of qualified improvement property and special deductions on certain corporate charitable contributions. The Company analyzed the provisions of the CARES Act and determined there was no impact to its income tax provision for the year ended December 31, 2020. Uncertain Tax Positions The Company is required to inventory, evaluate, and measure all uncertain tax positions taken or to be taken on tax returns and to record liabilities for the amount of such positions that may not be sustained, or may only partially be sustained, upon examination by the relevant taxing authorities. The following is a summary of the changes in the Company’s gross unrecognized tax benefits: Balance as of December 31, 2021 $ 77 Increase related to tax position taken — Balance as of December 31, 2022 $ 77 As of December 31, 2021, the total amount of gross unrecognized tax benefits was $ 77 thousand, which, if recognized, would not have an impact on the Company’s effective tax rate, due to the valuation allowance. The Company estimates that there will be no material changes in its uncertain tax positions in the next 12 months. The Company's policy is to include interest and penalties related to unrecognized tax benefits as a component of income tax expense. There are no interest and penalties recognized in the statement of operations for the year ended December 31, 2022. The Company files federal and state income tax returns in the U.S. For U.S. federal and state income tax purposes, the statute of limitations currently remains open for all years due to our NOL carryforwards. The Company is not currently under examination in any jurisdiction.

Commitments and Contingencies

Commitments and Contingencies	12 Months Ended
	Dec. 31, 2022
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	14. Commitments and Contingencies From time to time, the Company becomes involved in claims, vendor disputes and other legal matters arising in the ordinary course of business. The Company investigates these claims as they arise. Although claims are inherently unpredictable, the Company is currently not aware of any matters that, if determined adversely to it, would individually or taken together have a material adverse effect on our business, results of operations, financial position or cash flows. The Company records liabilities for legal and other contingencies when losses are probable and estimable. During the twelve months ended December 31, 2022 the Company recorded an estimated accrued liability of $ 1.1 million related to a disputed change order with one of its vendors. The Company enters into agreements in the normal course of business with various vendors, which are generally cancelable upon notice. Payments due upon cancellation consist only of payments for services provided or expenses incurred, including non-cancellable obligations of service providers, up to the date of cancellation.

Related Party Transactions

Related Party Transactions	12 Months Ended
	Dec. 31, 2022
Related Party Transactions [Abstract]
Related Party Transactions	15. Related Party Transactions In March 2021, Andy Armanino, the former chief executive of officer of Armanino LLP and close relative to the current chief executive officer of Armanino LLP joined the Company's board of directors. The Company used Armanino LLP for tax, valuation, and outsourced accounting services. During the twelve months ended December 31, 2022 and 2021 the Company incurred zero and $ 36 thousand in fees related to these services, respectively.

Subsequent Events

Subsequent Events	12 Months Ended
	Dec. 31, 2022
Subsequent Events [Abstract]
Subsequent Events	16. Subsequent Events On March 23, 2023 Company announced a reduction in workforce of approximately 35% of its employees and other cost saving initiatives as part of a cost reduction initiative to improve its cash runway and focus on the long-term success of the Company. The Company estimates that it will incur approximately $400 thousand in cash-based expenses related to severance and benefits in the second quarter of 2023.

Summary of Significant Accoun_2

Summary of Significant Accounting Policies (Policies)	12 Months Ended
	Dec. 31, 2022
Accounting Policies [Abstract]
Basis of Presentation	Basis of Presentation The financial statements and accompanying notes have been prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP"). Amounts are presented in thousands except share and per share information.
Comprehensive Loss	Comprehensive Loss For the years ended December 31, 2022 and 2021 , there was no difference between comprehensive loss and net loss.
Use of Estimates	Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make certain estimates, judgments, and assumptions that affect the reported amounts of assets and liabilities and the related disclosures at the date of the financial statements, as well as the reported amounts of revenue and expenses during the periods presented. The estimates and assumptions used in the accompanying financial statements are based upon management’s evaluation of the relevant facts and circumstances. Such estimates, judgments, and assumptions include estimated costs for capitalized internal-use software, fair values of stock-based awards, valuation allowance for deferred tax assets and fair value of SAFEs. Actual results could be different from these estimates. To the extent there are material differences between these estimates, judgments, or assumptions and actual results, the Company's financial statements will be affected.
Emerging Growth Company Status	Emerging Growth Company Status The Company is an emerging growth company, as defined in the Jumpstart Our Business Startups Act of 2012 (the "JOBS Act"). The JOBS Act provides that an emerging growth company can take advantage of the extended transition period for complying with new or revised accounting standards. Thus, an emerging growth company can delay the adoption of certain accounting standards until those standards would otherwise apply to private companies. The Company has elected to avail itself of this extended transition period and, as a result, it does not adopt new or revised accounting standards on the relevant dates on which adoption of such standards is required for other public companies until required by private company accounting standards.
Concentration of Risk	Concentration of Risk Financial instruments that potentially subject the Company to credit risk consist principally of cash and cash equivalents. The Company maintains its cash primarily with domestic financial institutions of high credit quality, which may exceed federal deposit insurance corporation limits. The Company invest its cash equivalents in highly rated money market funds. The Company has not experienced any losses in such accounts. The Company believes it is not exposed to any significant credit risk on cash and cash equivalents and perform periodic evaluations of the credit standing of such institutions.
Fair Value Measurements	Fair Value Measurements The carrying value of the Company's financial instruments, including cash equivalents, accounts payable, accrued liabilities and notes payable approximates fair value due to their short-term nature. The Company’s investment portfolio consists of money market funds, which are carried at fair value. The Company has determined the carrying value to be equal to the fair value and has classified these investments as Level 1 financial instruments. The Company measures financial assets and liabilities at fair value at each reporting period using a fair value hierarchy that requires the use of observable inputs and minimizes the use of unobservable inputs. The Company defines fair value as the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Fair value is estimated by applying the following hierarchy, which prioritizes the inputs used to measure fair value into three levels and bases the categorization within the hierarchy upon the lowest level of input that is available and significant to the fair value measurement: • Level 1 — Quoted prices in active markets for identical assets or liabilities. • Level 2 — Observable inputs other than quoted prices in active markets for identical assets and liabilities, quoted prices for identical or similar assets or liabilities in inactive markets, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. • Level 3 — Inputs that are generally unobservable and typically reflect management’s estimate of assumptions that market participants would use in pricing the asset or liability.
Property and Equipment, Net	Property and Equipment, Net Property and equipment, net, which include computer equipment and software are stated at cost, less accumulated depreciation. Depreciation is calculated using the straight-line method over the estimated useful life of 3 years . Expenditures for repairs and maintenance are expensed in the period incurred.
Capitalized Internal-Use Software Costs	Capitalized Internal-Use Software Costs Costs incurred to develop software and our platform for internal use consist primarily of direct employee-related and third-party contractor costs and are accounted for pursuant to ASC 350-40, Internal Use Software . Costs incurred during the preliminary planning and evaluation stage of the project are expensed as incurred. Costs incurred during the application development stage of the project are capitalized and amortized over an estimated useful life of 3 years .
Impairment of Long-Lived Assets	Impairment of Long-Lived Assets The Company reviews long-lived assets for impairment when circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of these assets is measured by a comparison of the carrying amounts to the sum of the future undiscounted cash flows the assets are expected to generate over the remaining useful lives of the assets. If a long-lived asset fails a recoverability test, the Company measures the amount by which the carrying value of the asset exceeds its fair value. There were no events or changes in business circumstances during the twelve months ended December 31, 2022 and 2021 that indicated the carrying amounts of any long-lived assets were not fully recoverable.
Advertising Expense	Advertising Expense The Company recognizes advertising expenses as they are incurred, and such costs are included in sales and marketing expense in the statements of operations. During the twelve months ended December 31, 2022 and 2021, advertising expense totaled $ 4 thousand and $ 2 thousand, respectively.
Equity-Based Compensation	Equity-Based Compensation Expense The Company accounts for equity-based compensation arrangements granted to employees in accordance with ASC 718, "Compensation: Stock Compensation", by measuring the grant date fair value of the award and recognizing the resulting expense over the period during which the employee is required to perform service in exchange for the award. Equity-based compensation expense is only recognized for awards subject to performance conditions if it is probable that the performance condition will be achieved. The Company accounts for equity-based compensation arrangements issued to non-employees using the fair value approach prescribed by ASU 2018-07, "Compensation-Stock Compensation (ASC 718): Improvements to Non-employee Share-Based Payment Accounting". The value of non-employee equity-based compensation is measured at the grant date using a fair value-based measure. The fair value of each option award granted is estimated on the grant date. The grant date fair value of options with service based vesting conditions is determined using the Black-Scholes option pricing model. The Black-Scholes option pricing model requires the input of subjective assumptions, including the fair value of the underlying common stock, the expected term of the option, the expected volatility of the price of the Company's common stock, risk-free interest rates, and the dividend yield of the Company's common stock. The grant date fair value of options with performance-based market conditions is determined using a Monte-Carlo valuation simulation. • Fair Value of Common Stock — The Company determines the fair value of common stock based on the closing price of our common stock on the date of the grant. • Expected term — The expected term represents the period that the equity-based awards are expected to be outstanding. The Company determines the expected term using the simplified method. The simplified method deems the term to be the average of the time-to-vesting and the contractual life of the options. For stock options granted to non-employees, the expected term equals the remaining contractual term of the option from the vesting date. • Expected volatility — As the Company had no trading history for its common stock when we granted our option awards prior to the Business Combination (as defined below), the expected volatility was estimated by taking the average historic price volatility for industry peers, consisting of several public companies in our industry that are either similar in size, stage, or financial leverage, over a period equivalent to the expected term of the awards. Due to its limited trading history, the Company will continue to determine expected volatility using estimates of industry peers. • Risk-free interest rate — The risk-free interest rate is calculated using the average of the published interest rates of U.S. Treasury zero-coupon issues with maturities that are commensurate with the expected term. • Expected dividend yield — The dividend yield assumption is zero as the Company has no history of or plans to make dividend payments. The grant date fair value of options with performance-based market conditions is determined using a Monte-Carlo valuation simulation. For awards that vest based on service conditions and market conditions, the Company uses the straight-line method to recognize compensation expense over the respective service period. For awards that contain performance conditions, the Company determines the appropriate amount to expense based on the anticipated achievement of performance targets, which requires judgment, including forecasting the achievement of future specified targets. At the date performance conditions are determined to be probable of achievement, the Company records a cumulative expense catch-up, with remaining expense amortized over the remaining service period. Throughout the performance period, the Company re-assesses the estimated performance and updates the number of performance-based awards that the Company believes will ultimately vest. Discounted stock purchases under the Better Therapeutics, Inc. 2021 Employee Stock Purchase Plan (the "ESPP") are valued on the first date of the offering period using the Black-Scholes option-pricing model to compute the fair value of the lookback provision plus the purchase discount. Discounted stock purchases under the ESPP are recognized over the offering period. The Company accounts for forfeitures when they occur. For awards forfeited before completion of the requisite service period, previously recognized compensation cost is reversed in the period the award is forfeited.
Income Taxes	Income Taxes The Company accounts for income taxes using the asset and liability method under which deferred tax assets and liabilities are determined based on the differences between the financial reporting and tax bases of assets and liabilities with consideration given to net operating losses and tax credit carryforwards. Deferred tax assets and liabilities are measured using the enacted tax rates that are expected to be in effect when the differences are expected to reverse. The Company assesses the likelihood that deferred tax assets will be recovered from future taxable income and a valuation allowance is established when necessary to reduce deferred tax assets to the amounts more likely than not expected to be realized. The Company adopted Accounting Standards Update ("ASU") No. 2015-17, Income Taxes — Balance Sheet Classification of Deferred Taxes, and classified its deferred income taxes as non-current in the balance sheets. The Company recognizes and measures uncertain tax positions using a two-step approach. The first step is to evaluate the tax position taken or expected to be taken by determining if the weight of available evidence indicates that it is more likely than not that the tax position will be sustained in an audit, after resolution of any related appeals or litigation processes. The second step is to measure the tax benefit as the largest amount that is more than 50% likely to be realized upon ultimate settlement. Significant judgment is required to evaluate uncertain tax positions. The Company evaluates its uncertain tax positions on a regular basis. The Company's evaluations are based on a number of factors, including changes in facts and circumstances, changes in tax law, correspondence with tax authorities during the course of the audit, and effective settlement of audit issues.
Net Loss Per Share Attributable to Common Stockholders	Net Loss Per Share Attributable to Common Stockholders Basic and diluted net loss per share calculations are presented in accordance with Financial Accounting Standards Board ("FASB") ASC Topic No. 260 Earnings per Share and are calculated on the basis of the weighted average number of common shares outstanding during the period. Diluted per share calculations includes the dilutive effect of common stock equivalents in years with net income. As the Company has reported net losses for all periods presented, all potentially dilutive securities are antidilutive and, accordingly, basic net loss per share equals diluted net loss per share.
Revenue Recognition	Revenue Recognition On January 1, 2020, the Company adopted the requirements of Accounting Standards Update ("ASU") No. 2014-09, Revenue from Contracts with Customers (Topic 606) ("ASC 606"). ASC 606 establishes a principle for recognizing revenue upon the transfer of promised goods or services to customers, in an amount that reflects the expected consideration received in exchange for those goods or services. The adoption of ASC 606 also requires the adoption of ASC Subtopic 340-40, Other Assets and Deferred Costs-Contracts with Customers, which provides for the deferral of certain incremental costs of obtaining a contract with a customer. Collectively, references to ASC 606 used herein refer to both ASC 606 and Subtopic 340-40. The core principle of ASC 606 is to recognize revenue to depict the transfer of promised goods or services to clients in an amount that reflects the consideration the entity expects to be entitled in exchange for those goods or services. This principle is achieved through applying the following five-step approach: • Identification of the contract, or contracts, with a client. • Identification of the performance obligations in the contract. • Determination of the transaction price. • Allocation of the transaction price to the performance obligations in the contract • Recognition of revenue when, or as, the Company satisfies a performance obligation.
Segment Reporting	Segment Reporting The Company operates as one operating segment as it only reports financial information on an aggregate basis to the Chief Executive Officer, its chief operating decision maker, who regularly reviews financial operating results for purposes of allocating resources and evaluating financial performance. There are no segment managers who are held accountable for operations, operating results, and plans for components or types of products or services below the unit level. As of December 31, 2022 , all long-lived assets were in the United States.
Recent Accounting Pronouncements	Recent Accounting Pronouncements In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842), which modifies lease accounting for lessees to increase transparency and comparability by recording lease assets and liabilities for operating leases and disclosing key information about leasing arrangements. In July 2018, the FASB issued ASU No. 2018-10, Codification Improvements to Topic 842, Leases, and ASU No. 2018-11, Leases (Topic 842), Targeted Improvements, which affect certain aspects of the previously issued guidance. In December 2018, the FASB issued ASU No. 2018-20, Narrow-Scope Improvements for Lessor, Leases (Topic 842), which provides guidance on sales tax and other taxes collected from lessees. In December 2019, the FASB issued ASU No. 2019-01, Codification Improvements to Topic 842, Leases, which affect certain aspects of the previously issued guidance. Amendments include an additional transition method that allows entities to apply the new standard on the adoption date and recognize a cumulative effect adjustment to the opening balance of retained earnings, as well as a new practical expedient for lessors. The Company's adoption of this new standard on January 1, 2021 did no t have a material impact on our financial statements. In December 2019, the FASB issued ASU No. 2019-12, Simplifying the Accounting for Income Taxes (Topic 740). This ASU simplifies the accounting for income taxes by, among other things, eliminating certain existing exceptions related to the general approach in ASC 740 relating to franchise taxes, reducing complexity in the interim-period accounting for year-to-date loss limitations and changes in tax laws, and clarifying the accounting for transactions outside of business combination that result in a step-up in the tax basis of goodwill. The transition requirements are primarily prospective, and the effective date is January 1, 2021. The Company's adoption of this new standard on January 1, 2021 did no t have a material impact on our financial statements. In August 2020, the FASB issued ASU 2020-06, Debt — Debt with Conversion and Other Options (ASC 470-20) and Derivatives and Hedging — Contracts in Entity’s Own Equity (ASC 815-40) . ASU 2020-06 simplifies the accounting for certain financial instruments with characteristics of liabilities and equity, including convertible instruments and contracts on an entity’s own equity. The ASU 2020-06 is part of the FASB’s simplification initiative, which aims to reduce unnecessary complexity in GAAP. This ASU’s amendments are effective for fiscal years beginning after December 15, 2023, and interim periods within those fiscal years. The Company is currently evaluating the impact ASU 2020-06 will have on its financial statements. The Company has implemented all new accounting pronouncements that are in effect and that may impact its financial statements and does not believe that there are any other new accounting pronouncements that have been issued that might have a material impact on its financial position or results of operations.

Property and Equipment, Net (Ta

Property and Equipment, Net (Tables)	12 Months Ended
	Dec. 31, 2022
Property, Plant and Equipment [Abstract]
Summary of Property and Equipment	Property and equipment consisted of the follow: December 31, 2022 2021 Computer, equipment and software $ 178 $ 155 Furniture and fixtures — 155 Property and equipment 178 310 Less: accumulated depreciation ( 57 ) ( 228 ) Property and equipment, net $ 121 $ 82

Capitalized Internal Use Soft_2

Capitalized Internal Use Software (Tables)	12 Months Ended
	Dec. 31, 2022
Research and Development [Abstract]
Summary of Capitalized Internal Use Software and Accumulated Amortization	Capitalized internal use software and accumulated amortization were as follows: December 31, 2022 2021 Gross carrying amount $ 7,718 $ 6,611 Accumulated amortization ( 3,830 ) ( 1,534 ) Capitalized internal-use software, net $ 3,888 $ 5,077

Accrued Liabilities (Tables)

Accrued Liabilities (Tables)	12 Months Ended
	Dec. 31, 2022
Payables and Accruals [Abstract]
Schedule of Accrued Liabilities	December 31, 2022 2021 Due to service providers $ 1,335 $ 878 Due to professionals 506 542 Financed insurance 963 361 Accrued interest 168 77 Other 654 - Other accrued liabilities $ 3,626 $ 1,858

Debt (Tables)

Debt (Tables)	12 Months Ended
	Dec. 31, 2022
Debt Disclosure [Abstract]
Schedule of Future Payments on Long-term Debt	Future payments on long-term debt as of December 31, 2022 are as follows: Fiscal year ending December 31, Amount 2023 4,532 2024 6,023 2025 4,445 Total debt 15,000 Less current portion long-term debt ( 4,532 ) Less unamortized debt issuance costs ( 360 ) Accrued end of term charge 240 Total long-term debt, net of current portion and debt issuance costs $ 10,348

Net Loss Per Share Attributab_2

Net Loss Per Share Attributable to Common Shareholders (Tables)	12 Months Ended
	Dec. 31, 2022
Earnings Per Share [Abstract]
Summary of Computation of Basic and Diluted Loss	The following table sets forth the computation of basic and diluted loss (in thousands, except for share and per share amounts): Year Ended December 31, 2022 2021 Net Loss $ ( 39,760 ) $ ( 40,335 ) Weighted-average number of shares of common stock outstanding 23,695,503 13,351,866 Less: weighted-average shares of common stock subject to vesting ( 137,657 ) ( 369,394 ) Weighted-average shares of common stock outstanding used in the calculation of basic and diluted net loss per share attributable to shareholders 23,557,846 12,982,472 Net Loss per share, basic and diluted $ ( 1.69 ) $ ( 3.11 )

Share-Based Compensation (Table

Share-Based Compensation (Tables)	12 Months Ended
	Dec. 31, 2022
Share-Based Payment Arrangement [Abstract]
Schedule of Stock Option Activity	Stock option activity for the periods presented is as follows: Options Outstanding Weighted Shares Weighted- Average Subject to Average Remaining Aggregate Options Exercise Contractual Intrinsic Outstanding Price Life (Years) Value Balance as of December 31, 2021 1,476,475 $ 9.35 9.4 $ 884 Granted 3,595,838 1.88 Exercised ( 60,520 ) 0.50 Forfeited ( 1,012,570 ) 4.66 Balance as of December 31, 2022 3,999,223 $ 3.95 9.3 $ 64
Schedule of Stock Options Awards Valuation Assumptions	The Black-Scholes option pricing model assumptions used in evaluating our awards to employees are as follows: Year Ended Year Ended December 31, December 31, 2022 2021 Expected Term (Years) 6.09 6.02 Expected Volatility 41.0 % 42.0 % Risk-free interest rate 2.74 % 1.22 % Dividend Yield — — The estimated fair values of these awards was determined using a Monte-Carlo valuation simulation, with the following most significant assumptions: Year Ended December 31, 2022 Valuation date stock price 1.68 Valuation date to end of performance period (Years) 10.00 Expected Volatility 38.8 % Risk-free interest rate 2.80 % Dividend Yield —
Schedule of Equity-based Compensation Expense	Equity-based compensation expense in the statement of operations is summarized as follows: Year Ended December 31, 2022 2021 Research and development $ 555 $ 250 Sales and marketing ( 7 ) 6 General and administrative 1,276 390 Total equity-based compensation expense $ 1,824 $ 646

Income Taxes (Tables)

Income Taxes (Tables)	12 Months Ended
	Dec. 31, 2022
Income Tax Disclosure [Abstract]
Schedule of Provision for Income Taxes	provision for (benefit from) income taxes consisted of the following: December 31, 2022 2021 Current: Federal $ — $ — State 7 ( 1 ) Total current 7 ( 1 ) Deferred: Federal — ( 152 ) State — — Total deferred — ( 152 ) Total provision for (benefit from) income taxes $ 7 $ ( 153 )
Schedule of Reconciliation of Federal Statutory Income Tax Rate to Effective Income Tax Rate	The reconciliation of federal statutory income tax rate to the Company's effective income tax rate is as follows: Year Ended December 31, 2022 2021 Expected income tax benefit at the federal statutory rate $ ( 8,421 ) $ ( 8,502 ) State taxes, net of federal benefit ( 80 ) ( 42 ) Research and development credit, net — — Deferred tax true up 14 — Non-deductible items 135 2,129 Change in valuation allowance 8,359 6,262 Total $ 7 $ ( 153 )
Summary of Significant Components of Deferred Tax Assets	Significant components of the Company's deferred tax assets are summarized as follows: December 31, 2022 2021 Deferred tax assets: Federal and state new operating loss carryforwards $ 12,025 $ 6,844 Research and development tax credits 207 207 Depreciation and amortization 12 25 Stock based compensation 277 55 Section 174 costs 2,613 — Accruals and reserves 394 284 Gross deferred tax assets $ 15,528 7,415 Less Valuation allowance ( 14,706 ) ( 6,347 ) Net deferred tax assets $ 822 $ 1,068 Deferred tax liabilities: Capitalized internal use software ( 822 ) ( 1,068 ) Net deferred tax liabilities ( 822 ) ( 1,068 ) Net deferred tax liability $ — $ —
Summary of Changes in Gross Unrecognized Tax Benefits	The following is a summary of the changes in the Company’s gross unrecognized tax benefits: Balance as of December 31, 2021 $ 77 Increase related to tax position taken — Balance as of December 31, 2022 $ 77

Organization and Description _2

Organization and Description of Business - Additional Information (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Subsidiary, Sale of Stock [Line Items]
Cash	$ 15,740	$ 40,566
Accumulated deficit	(111,503)	(71,743)
Net loss	(39,760)	(40,335)
Net cash used in operating activities	28,930	$ 30,818
Direct medical costs, annually	$ 100,000,000

Summary of Significant Accoun_3

Summary of Significant Accounting Policies - Additional Information (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2022 USD ($) Segment	Dec. 31, 2021 USD ($)
Research and development expense	$ 16,440	$ 19,436
Property and equipment, estimated useful lives	3 years
Capitalized internal-use software estimated useful life	3 years
Advertising expense	$ 4	$ 2
Dividend yield assumption	0%
Number of operating segments | Segment	1
ASU 2016-02
Change in accounting principle, accounting standards update, adopted	true
Change in accounting principle, accounting standards update, adoption date	Jan. 01, 2021
Change in accounting principle, accounting standards update, immaterial effect	true
ASU 2019-12
Change in accounting principle, accounting standards update, adopted	true
Change in accounting principle, accounting standards update, adoption date	Jan. 01, 2021
Change in accounting principle, accounting standards update, immaterial effect	true

Business Combination - Addition

Business Combination - Additional Information (Details) - USD ($) $ / shares in Units, $ in Thousands			12 Months Ended
	Oct. 28, 2021	Apr. 06, 2021	Dec. 31, 2022
Business Acquisition [Line Items]
Prepaid assets			$ 43
Accrued liabilities			245
Net proceeds from business combination			42,800
Merger Agreement With Mountain Crest Acquisition Corp. II [Member]
Business Acquisition [Line Items]
Date of acquisition agreement		Apr. 06, 2021
Funding upon payments	$ 59,000
Aquired exchange outstanding shares	15,200,000
Exchange ratio	0.9475%
Transaction totaling cost	$ 16,700
Merger Agreement With Mountain Crest Acquisition Corp. II [Member] | PIPE Shares [Member]
Business Acquisition [Line Items]
Aggregate shares		5,000,000
Share price		$ 10
Merger Agreement With Mountain Crest Acquisition Corp. II [Member] | PIPE Financing [Member]
Business Acquisition [Line Items]
Aggregate shares	5,000,000
Share price	$ 10
Aggregate gross proceeds	$ 50,000
MCAD cash and cash held in trust [Member]
Business Acquisition [Line Items]
Cash			$ 9,500

Property and Equipment, Net - S

Property and Equipment, Net - Summary of Property and Equipment (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Property, Plant and Equipment [Line Items]
Property and equipment	$ 178	$ 310
Less: accumulated depreciation	(57)	(228)
Property and equipment, net	121	82
Computer, Equipment and Software
Property, Plant and Equipment [Line Items]
Property and equipment	178	155
Furniture and Fixtures
Property, Plant and Equipment [Line Items]
Property and equipment	$ 0	$ 155

Property and Equipment, Net - A

Property and Equipment, Net - Additional Information (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Property, Plant and Equipment [Abstract]
Depreciation expense	$ 58	$ 62

Capitalized Internal Use Soft_3

Capitalized Internal Use Software - Summary of Capitalized Internal Use Software and Accumulated Amortization (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Research and Development [Abstract]
Gross carrying amount	$ 7,718	$ 6,611
Accumulated amortization	(3,830)	(1,534)
Capitalized internal-use software, net	$ 3,888	$ 5,077

Capitalized Internal Use Soft_4

Capitalized Internal Use Software - Additional Information (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Research and Development [Abstract]
Amortization expense related to capitalized internal-use software	$ 2.3	$ 1.5

Research and Development Payr_2

Research and Development Payroll Tax Credits - Additional Information (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Research And Development Payroll Tax Credit [Member] | Other Current Assets
Tax Credit Carryforward [Line Items]
Research and development payroll tax credit receivables	$ 45	$ 351

Accrued Liabilities - Schedule

Accrued Liabilities - Schedule of Accrued Liabilities (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Payables and Accruals [Abstract]
Due to service providers	$ 1,335	$ 878
Due to professionals	506	542
Financed insurance	963	361
Accrued interest	168	77
Other	654
Other accrued liabilities	$ 3,626	$ 1,858

Debt - Additional Information (

Debt - Additional Information (Details) - USD ($)			12 Months Ended
	Aug. 18, 2021	May 09, 2020	Dec. 31, 2022	Dec. 31, 2021	May 31, 2022	Oct. 31, 2021
Debt Instrument [Line Items]
Interest payable current			$ 168,000	$ 77,000
Debt issuance costs				(518,000)
Debt instrument, extended maturity date	Feb. 01, 2026
Long-term debt, net of debt issuance costs			10,348,000	9,505,000
PPP Loan [Member] | Celtic Bank Corporation [Member]
Debt Instrument [Line Items]
Long term debt stated interest rate percentage		1%
Gain on loan forgiveness		$ 647,000
Proceeds from notes payable		$ 640,000
Long term debt moratorium period		10 months
Long term debt term		2 years
Secured Debt [Member] | Hercules Capital Inc [Member]
Debt Instrument [Line Items]
Debt instrument, interest rate	3.25%
Interest payable current			168,000	77,000
Debt instrument, frequency of principal and interest payment	monthly
Debt issuance costs	$ 518,000
Amortization expense			$ 376,000	23,000
Debt instrument maturity date	Aug. 01, 2025
Debt instrument interest only payments maturity date	Mar. 01, 2023
Debt instrument, interest rate terms			The outstanding principal bears interest at the greater of (a) 8.95% or (b) 8.95% plus the prime rate minus 3.25%.
Repayments of debt	$ 893,000
Percentage of outstanding principal upon repayment of the loan	5.95%
Proceeds from equity financing	$ 40,000,000
Debt instrument, face amount	$ 50,000,000				$ 5,000,000
Long-term debt, net of debt issuance costs			$ 10,300,000	$ 9,500,000
Long term debt variable interest rate percentage	8.95%		13.20%	8.95%
Long term debt base rate percentage	8.95%
Secured Debt [Member] | Hercules Capital Inc [Member] | Tranche One [Member]
Debt Instrument [Line Items]
Debt instrument, face amount	$ 15,000,000
Secured Debt [Member] | Hercules Capital Inc [Member] | Tranche Two [Member]
Debt Instrument [Line Items]
Debt instrument, face amount	10,000,000
Secured Debt [Member] | Hercules Capital Inc [Member] | Tranche Three [Member]
Debt Instrument [Line Items]
Debt instrument, face amount	10,000,000
Secured Debt [Member] | Hercules Capital Inc [Member] | Tranche Four [Member]
Debt Instrument [Line Items]
Debt instrument, face amount	$ 15,000,000
Secured Debt [Member] | Hercules Capital Inc [Member] | Tranche Five [Member]
Debt Instrument [Line Items]
Debt instrument, face amount						$ 10,000,000

Debt - Schedule of Future Payme

Debt - Schedule of Future Payments on Long-term Debt (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Debt Disclosure [Abstract]
2023	$ 4,532
2024	6,023
2023	4,445
Total debt	15,000
Less current portion long-term debt	(4,532)
Unamortized debt issuance costs	(360)
Accrued end of term charge	240
Total long-term debt, net of current portion and debt issuance costs	$ 10,348	$ 9,505

SAFE Agreements - Additional In

SAFE Agreements - Additional Information (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2021 USD ($)
Finite-Lived Intangible Assets [Line Items]
Change in fair value of SAFEs	$ (10,390)

Shareholders' Deficit - Additio

Shareholders' Deficit - Additional Information (Details) - $ / shares		12 Months Ended
	Oct. 28, 2021	Dec. 31, 2020	Dec. 31, 2022	Dec. 31, 2021
Class Of Stock [Line Items]
Common stock par or stated value per share	$ 0.0001		$ 0.0001	$ 0.0001
Conversion of common shares		11,146,510
Common stock shares issued			23,851,022	23,602,718
Common stock shares outstanding			23,851,022	23,602,718
Common stock conversion ratio	0.9475%

Net Loss Per Share Attributab_3

Net Loss Per Share Attributable to Common Shareholders - Summary of Computation of Basic and Diluted Loss (Details) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Earnings Per Share [Abstract]
Net Loss	$ (39,760)	$ (40,335)
Weighted-average common stock outstanding	23,695,503	13,351,866
Less: weighted-average shares of common stock subject to vesting	(137,657)	(369,394)
Weighted-average shares of common stock outstanding used in the calculation of basic net loss per share attributable to shareholders	23,557,846	12,982,472
Weighted-average shares of common stock outstanding used in the calculation of diluted net loss per share attributable to shareholders	23,557,846	12,982,472
Net loss per share, basic	$ (1.69)	$ (3.11)
Net loss per share, diluted	$ (1.69)	$ (3.11)

Net Loss Per Share Attributab_4

Net Loss Per Share Attributable to Common Stockholders - Additional Information (Details) - shares	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Earnings Per Share [Abstract]
Potentially dilutive securities excluded from computation of diluted weighted average shares outstanding	3,999,223	1,476,475

Share-Based Compensation - Addi

Share-Based Compensation - Additional Information (Details) $ / shares in Units, $ in Thousands		1 Months Ended		12 Months Ended
	Oct. 27, 2021 PurchasePeriod	Jul. 31, 2022 shares	Oct. 31, 2021 shares	Dec. 31, 2022 USD ($) $ / shares shares	Dec. 31, 2021 USD ($) $ / shares shares	Jan. 01, 2023 shares	Nov. 30, 2022 shares	Aug. 31, 2020 shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Weighted average grant date fair value of stock options granted to employees | $ / shares				$ 0.73	$ 3.60
Unrecognized compensation expense | $				$ 3,400
Unvested restricted stock period				6 months
Stock-based compensation expense | $				$ 1,824	$ 646
Capitalized Internal-use Software Costs
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense | $				$ 33	$ 40
Stock Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period				4 years
Stock based award vesting description				Stock options granted with service conditions generally vest over four years with 25% of the option shares vesting one year from the vesting commencement date and then ratably on a monthly basis over the following 36 months
Option expire term				10 years
Unrecognized compensation expense, weighted average period for recognize				2 years 11 months 1 day
Requisite service period				4 years
Time-based Restricted Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense | $				$ 13
Performance-Based Restricted stock Award
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total grant date fair value | $				$ 31
Number of consecutive days		90 days
Requisite service period				8 years
Performance-Based Restricted stock Award | Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting of shares		1,850,000
First Year from Commencement Date | Stock Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting rights, percentage				25%
2020 Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common stock shares reserved for future issuance								807,000
2020 Plan | Restricted Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Restricted stock				30,000
2020 Plan | Unrestricted Common Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Restricted stock awards vested and converted				172,000	235,634
Restricted stock, forfeited					52,263
2021 Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common stock shares reserved for future issuance			3,600,000
Percentage of increase in common stock reserved and available for issuance			5%
2021 Plan | Subsequent Event
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common stock shares reserved for future issuance						3,000,000
Common stock shares added to plan						1,200,000
Employee Stock Purchase Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common stock shares reserved for future issuance			280,000
Percentage of increase in common stock reserved and available for issuance	85%		1%
Offering period	24 months
Number of purchase periods | PurchasePeriod	4
Offering period commencement date	Feb. 15, 2022
Number of shares issued during period				187,784
Increase in common stock reserved and available for issuance			560,000
Stock-based compensation expense | $				$ 134
Employee Stock Purchase Plan | Subsequent Event
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common stock shares reserved for future issuance						566,753
Common stock shares added to plan						238,510
2022 Inducement Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common stock shares reserved for future issuance							600,000

Share-Based Compensation - Sche

Share-Based Compensation - Schedule of Stock Option Activity (Details) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Share-Based Payment Arrangement [Abstract]
Subject to Options Outstanding Beginning Balance	1,476,475
Subject to Options Outstanding Granted	3,595,838
Subject to Options Outstanding Exercised	(60,520)
Subject to Options Outstanding Forfeited	(1,012,570)
Subject to Options Outstanding Ending Balance	3,999,223	1,476,475
Weighted Average Exercise Price Beginning Balance	$ 9.35
Weighted Average Exercise Price Granted	1.88
Weighted Average Exercise Price Exercised	0.50
Weighted Average Exercise Price Forfeited	4.66
Weighted Average Exercise Price Ending Balance	$ 3.95	$ 9.35
Weighted Average Remaining Contractual Life (Years)	9 years 3 months 18 days	9 years 4 months 24 days
Aggregate Intrinsic Value	$ 64	$ 884

Share-Based Compensation - Sc_2

Share-Based Compensation - Schedule of Stock Options Awards Valuation Assumptions (Details) - $ / shares	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Dividend Yield	0%
Stock Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected Term (Years)	6 years 1 month 2 days	6 years 7 days
Expected Volatility	41%	42%
Risk-free interest rate	2.74%	1.22%
Dividend Yield	0%	0%
Performance-Based Stock Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected Volatility	38.80%
Risk-free interest rate	2.80%
Dividend Yield	0%
Valuation date stock price	$ 1.68
Valuation date to end of performance period (Years)	10 years

Share-Based Compensation - Sc_3

Share-Based Compensation - Schedule of Equity-based Compensation Expense (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total equity-based compensation expense	$ 1,824	$ 646
Research and Development
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total equity-based compensation expense	555	250
Selling and Marketing
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total equity-based compensation expense	(7)	6
General and Administrative
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total equity-based compensation expense	$ 1,276	$ 390

Income Taxes - Additional Infor

Income Taxes - Additional Information (Details) - USD ($)	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Income Taxes Disclosure [Line Items]
Income tax provision	$ 7,000	$ (153,000)
Net change in valuation allowance, increase amount	8,400,000
NOL attributes carried forward from the business combination of MCAD II	$ 77,000
Threshold percentage of Cumulative ownership change for limitations in the amount of the net operating losses	50%
CARES Act income tax provision			$ 0
Unrecognized tax benefits would have impact on effective tax rate		$ 77,000
Unrecognized tax benefits, interest and penalties	$ 0
Federal | Research Tax Credit Carryforwards
Income Taxes Disclosure [Line Items]
Tax credit carryforwards expiration year	2040
Federal | Indefinite Life
Income Taxes Disclosure [Line Items]
Operating loss carryforwards	$ 56,800,000
Federal | Indefinite Life | Research Tax Credit Carryforwards
Income Taxes Disclosure [Line Items]
Tax credit carryforwards	$ 122,000
State
Income Taxes Disclosure [Line Items]
Operating loss carryforwards expiration year	2035
State | Tax Period Two Thousand and Forty
Income Taxes Disclosure [Line Items]
Operating loss carryforwards	$ 3,000,000
State | Tax Period Two Thousand and Forty | Research Tax Credit Carryforwards
Income Taxes Disclosure [Line Items]
Tax credit carryforwards	$ 85,000

Income Taxes - Schedule of Prov

Income Taxes - Schedule of Provision for Income Taxes (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Current:
Federal	$ 0	$ 0
State	7	(1)
Total current	7	(1)
Deferred:
Federal	0	(152)
State	0	0
Total deferred	0	(152)
Total provision for income taxes	$ 7	$ (153)

Income Taxes - Schedule of Reco

Income Taxes - Schedule of Reconciliation of Federal Statutory Income Tax Rate to Effective Income Tax Rate (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Income Tax Disclosure [Abstract]
Expected income tax benefit at the federal statutory rate	$ (8,421)	$ (8,502)
State taxes, net of federal benefit	(80)	(42)
Research and development credit, net	0
Deferred tax true up	14
Non-deductible items	135	2,129
Change in valuation allowance	8,359	6,262
Total provision for income taxes	$ 7	$ (153)

Income Taxes - Summary of Signi

Income Taxes - Summary of Significant Components of Deferred Tax Assets (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Deferred tax assets :
Federal and state new operating loss carryforwards	$ 12,025	$ 6,844
Research and development tax credits	207	207
Depreciation and amortization	12	25
Stock based compensation	277	55
Section 174 costs	2,613
Accruals and reserves	394	284
Gross deferred tax assets	15,528	7,415
Less Valuation allowance	(14,706)	(6,347)
Net deferred tax assets	822	1,068
Deferred tax liabilities:
Capitalized internal use software	(822)	(1,068)
Net deferred tax liabilities	$ (822)	$ (1,068)

Income Taxes - Summary of Chang

Income Taxes - Summary of Changes in Gross Unrecognized Tax Benefits (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2022 USD ($)
Income Tax Disclosure [Abstract]
Balance as of December 31, 2021	$ 77
Increase related to tax position taken	0
Balance as of December 31, 2022	$ 77

Commitments and Contingencies -

Commitments and Contingencies - Additional Information (Details) $ in Millions	Dec. 31, 2022 USD ($)
Commitments and Contingencies Disclosure [Abstract]
Estimated accrued liability	$ 1.1

Related Party Transactions - Ad

Related Party Transactions - Additional Information (Details) - USD ($)	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Armanino LLP for tax, valuation and outsourced accounting services [Member] | Andrew Armanino [Member]
Related Party Transaction [Line Items]
Related party transaction fees incurred	$ 0	$ 36,000