Document and Entity Information
Document and Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Mar. 21, 2024 | Jun. 30, 2023 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2023 | ||
Document Fiscal Period Focus | FY | ||
Document Fiscal Year Focus | 2023 | ||
Entity Registrant Name | PRECISION BIOSCIENCES INC | ||
Entity Central Index Key | 0001357874 | ||
Trading Symbol | DTIL | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Small Business | true | ||
Entity Emerging Growth Company | true | ||
Entity Common Stock, Shares Outstanding | 6,916,239 | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
ICFR Auditor Attestation Flag | false | ||
Document Financial Statement Error Correction [Flag] | false | ||
Entity Shell Company | false | ||
Entity Ex Transition Period | false | ||
Entity File Number | 001-38841 | ||
Entity Tax Identification Number | 20-4206017 | ||
Entity Address, Address Line One | 302 East Pettigrew St. | ||
Entity Address, Address Line Two | Suite A-100 | ||
Entity Address, City or Town | Durham | ||
Entity Address, State or Province | NC | ||
Entity Address, Postal Zip Code | 27701 | ||
City Area Code | 919 | ||
Local Phone Number | 314-5512 | ||
Title of 12(b) Security | Common Stock, par value $0.000005 per share | ||
Security Exchange Name | NASDAQ | ||
Entity Incorporation, State or Country Code | DE | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Entity Voluntary Filers | No | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Public Float | $ 59.1 | ||
Documents Incorporated by Reference | DOCUMENTS INCORPORATED BY REFERENCE Portions of the registrant’s definitive proxy statement for its 2023 annual stockholders’ meeting, which is to be filed within 120 days of the registrant’s fiscal year ended December 31, 2023, are incorporated by reference into Part III of this Annual Report on Form 10-K. | ||
Auditor Name | Deloitte & Touche LLP | ||
Auditor Firm ID | 34 | ||
Auditor Location | Raleigh, North Carolina |
BALANCE SHEETS
BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Current assets: | ||
Cash and cash equivalents | $ 116,678 | $ 189,576 |
Accounts receivable | 901 | 720 |
Prepaid expenses | 5,977 | 6,025 |
Convertible note receivable | 11,897 | |
Other current assets | 419 | 1,228 |
Assets held for sale | 487 | |
Current assets of discontinued operations | 1,556 | |
Total current assets | 136,359 | 199,105 |
Property, equipment, and software—net | 6,338 | 11,815 |
Intangible assets—net | 400 | 731 |
Right-of-use assets—net | 8,263 | 1,964 |
Investment in equity securities | 3,206 | 2,576 |
Equity method investment | 2,172 | |
Note receivable—net | 4,990 | 7,234 |
Other assets | 225 | 226 |
Noncurrent assets of discontinued operations | 12,346 | |
Total assets | 159,781 | 238,169 |
Current liabilities: | ||
Accounts payable | 2,968 | 653 |
Accrued compensation | 4,978 | 5,104 |
Accrued research and development expenses | 1,557 | 1,827 |
Deferred revenue | 12,035 | 46,192 |
Lease liabilities | 1,133 | 1,678 |
Loan payable-net | 22,412 | |
Other current liabilities | 2,391 | 745 |
Current liabilities of discontinued operations | 2,513 | 3,465 |
Total current liabilities | 49,987 | 59,664 |
Deferred revenue | 73,082 | 82,872 |
Lease liabilities | 7,723 | 1,059 |
Long term debt—net | 22,223 | |
Other liabilities | 201 | |
Contract liabilities | 10,000 | 10,000 |
Noncurrent liabilities of discontinued operations | 128 | 1,717 |
Total liabilities | 140,920 | 177,736 |
Commitments and contingencies (Note 13) | ||
Stockholders’ equity: | ||
Preferred stock, $0.0001 par value- 10,000,000 shares authorized as of December 31, 2023 and December 31, 2022; no shares issued and outstanding as of December 31, 2023 and December 31, 2022 | ||
Common stock; $0.000005 par value- 200,000,000 shares authorized, 4,191,053 shares issued and 4,164,038 shares outstanding as of December 31, 2023; 3,725,689 shares issued and 3,698,674 shares outstanding as of December 31, 2022 | 1 | 1 |
Additional paid-in capital | 509,443 | 489,696 |
Accumulated deficit | (489,631) | (428,312) |
Treasury stock | (952) | (952) |
Total stockholders’ equity | 18,861 | 60,433 |
Total liabilities and stockholders’ equity | $ 159,781 | $ 238,169 |
BALANCE SHEETS (Parenthetical)
BALANCE SHEETS (Parenthetical) - $ / shares | Dec. 31, 2023 | Dec. 31, 2022 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value | $ 0.0001 | $ 0.0001 |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value | $ 0.000005 | $ 0.000005 |
Common stock, shares authorized | 200,000,000 | 200,000,000 |
Common stock, shares issued | 4,191,053 | 3,725,689 |
Common stock, shares outstanding | 4,164,038 | 3,698,674 |
STATEMENTS OF OPERATIONS
STATEMENTS OF OPERATIONS - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Income Statement [Abstract] | ||
Revenue | $ 48,727 | $ 25,098 |
Operating expenses | ||
Research and development | 53,375 | 46,122 |
General and administrative | 39,088 | 41,284 |
Total operating expenses | 92,463 | 87,406 |
Operating Loss | (43,736) | (62,308) |
Other income (expense), net: | ||
Impairment charges | (10,844) | |
Loss on disposal of assets | (461) | (30) |
Gain (loss) on changes in fair value | 1,145 | (510) |
Loss from equity method investment | (4,931) | (1,579) |
Interest expense | (2,230) | (1,111) |
Interest income | 7,686 | 3,473 |
Total other income (expense), net | 1,209 | (10,601) |
Loss from continuing operations | (42,527) | (72,909) |
Loss from discontinued operations (including gain on disposal of $8,446 during the year ended December 31, 2023) | (18,792) | (38,728) |
Net loss | $ (61,319) | $ (111,637) |
Net loss per share - basic | $ (15.96) | $ (38.1) |
Net loss per share - diluted | $ (15.96) | $ (38.1) |
Weighted average shares of common stock outstanding - basic | 3,841,405 | 2,929,873 |
Weighted average shares of common stock outstanding - diluted | 3,841,405 | 2,929,873 |
STATEMENTS OF OPERATIONS (Paren
STATEMENTS OF OPERATIONS (Parenthetical) $ in Thousands | 12 Months Ended |
Dec. 31, 2023 USD ($) | |
Income Statement [Abstract] | |
Gain on disposal | $ 8,446 |
STATEMENTS OF CHANGES IN STOCKH
STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (DEFICIT) - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Accumulated Deficit | Treasury Stock |
Beginning balance at Dec. 31, 2021 | $ 91,168 | $ 408,795 | $ (316,675) | $ (952) | |
Beginning balance, Shares at Dec. 31, 2021 | 2,057,085 | ||||
Stock option exercises | $ 392 | 392 | |||
Stock option exercises, Shares | 11,186 | 11,186 | |||
Issuance of common stock under employee stock purchase plan | $ 443 | $ 1 | 442 | ||
Issuance of common stock under employee stock purchase plan, Shares | 6,419 | ||||
Share-based compensation expense | 19,197 | 19,197 | |||
Restricted stock units vested, Shares | 9,556 | ||||
Issuance of common stock to collaboration partners | 11,553 | 11,553 | |||
Issuance of common stock to collaboration partners, Shares | 28,822 | ||||
Net proceeds from issuance of common stock | 49,317 | 49,317 | |||
Net proceeds from issuance of common stock, Shares | 1,612,621 | ||||
Net loss | (111,637) | (111,637) | |||
Ending balance at Dec. 31, 2022 | $ 60,433 | $ 1 | 489,696 | (428,312) | (952) |
Ending balance, Shares at Dec. 31, 2022 | 3,725,689 | 3,725,689 | |||
Stock option exercises | $ 31 | 31 | |||
Stock option exercises, Shares | 3,196 | 3,196 | |||
Issuance of common stock under employee stock purchase plan | $ 370 | 370 | |||
Issuance of common stock under employee stock purchase plan, Shares | 18,101 | ||||
Share-based compensation expense | 14,040 | 14,040 | |||
Restricted stock units vested, Shares | 46,893 | ||||
Net proceeds from issuance of common stock | 5,306 | 5,306 | |||
Net proceeds from issuance of common stock, Shares | 397,174 | ||||
Net loss | (61,319) | (61,319) | |||
Ending balance at Dec. 31, 2023 | $ 18,861 | $ 1 | $ 509,443 | $ (489,631) | $ (952) |
Ending balance, Shares at Dec. 31, 2023 | 4,191,053 | 4,191,053 |
STATEMENTS OF CASH FLOWS
STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Cash flows from operating activities: | ||
Net loss | $ (61,319) | $ (111,637) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation and amortization | 6,817 | 7,798 |
Share-based compensation | 14,040 | 19,197 |
Loss on disposal of assets | 563 | 106 |
Gain on disposal of business | (8,446) | |
Non-cash interest expense | 368 | 295 |
Amortization of right-of-use assets | 1,438 | 1,206 |
(Gain) Loss on changes in fair value | (1,145) | 510 |
Loss from equity method investment | 4,931 | 1,579 |
Amortization of discount on note receivable | (515) | (355) |
Impairment charges | 641 | 11,438 |
Changes in operating assets and liabilities: | ||
Prepaid expenses | 1,051 | (962) |
Accounts receivable | (181) | (232) |
Other assets and other current assets | 1,752 | 1,431 |
Accounts payable | 1,508 | 153 |
Other liabilities and other current liabilities | (724) | (1,816) |
Deferred revenue | (43,947) | 27,358 |
Lease liabilities | (946) | (1,822) |
Net cash used in operating activities | (84,114) | (45,753) |
Cash flows from investing activities: | ||
Proceeds from disposal of business | 8,000 | |
Proceeds from sale of equipment | 107 | |
Purchases of property, equipment and software | (1,957) | (3,319) |
Purchases of intangibles assets | (321) | |
Net cash provided by (used in) investing activities | 5,829 | (3,319) |
Cash flows from financing activities: | ||
Proceeds from stock option exercises | 31 | 392 |
Proceeds from employee stock purchase plan | 370 | 443 |
Proceeds from offering of common stock, net of issuance costs | 4,986 | 49,345 |
Proceeds from offering of common stock to collaboration partners | 25,000 | |
Borrowings from revolving credit facility, net of issuance costs paid to lender | 19,805 | |
Net cash provided by financing activities | 5,387 | 94,985 |
Net (decrease) increase in cash and cash equivalents | (72,898) | 45,913 |
Cash and cash equivalents—beginning of period | 189,576 | 143,663 |
Cash and cash equivalents —end of period | 116,678 | 189,576 |
Supplemental disclosures of noncash financing and investing activities: | ||
Property, equipment and software additions included in accounts payable, accrued expenses and other current liabilities | 14 | 103 |
Cash paid for interest | 2,018 | $ 824 |
Unsettled at-the-market issuances of common stock included in other current assets | $ 320 |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Pay vs Performance Disclosure | ||
Net Income (Loss) | $ (61,319) | $ (111,637) |
Insider Trading Policies and Pr
Insider Trading Policies and Procedures | 12 Months Ended |
Dec. 31, 2023 | |
Insider Trading Policies and Procedures [Line Items] | |
Insider Trading Policies and Procedures Adopted | true |
Description of Business and Sum
Description of Business and Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
DESCRIPTION OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NOTE 1: DESCRIPTION OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Description of Business Precision BioSciences, Inc. (the “Company”) was incorporated on January 26, 2006 under the laws of the State of Delaware and is based in Durham, North Carolina. The Company is a gene editing company dedicated to improving life by developing in vivo therapies for genetic and infectious diseases with the application of the Company’s wholly-owned proprietary ARCUS genome editing platform. Since its inception, the Company has devoted substantially all of its efforts to research and development activities, recruiting skilled personnel, establishing its intellectual property portfolio and providing general and administrative support for these operations. The Company is subject to a number of risks similar to those of other companies conducting early-stage research and development of product candidates. Principal among these risks are dependence on key individuals and intellectual property, competition from other products and companies, and the technical risks associated with the successful research, development and clinical manufacturing of its product candidates. The Company’s success is dependent upon its ability to continue to raise additional capital in order to fund ongoing research and development, obtain regulatory approval of its products, successfully commercialize its products, generate revenue, meet its obligations, and, ultimately, attain profitable operations. Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect the amounts reported in the financial statements and disclosures made in the accompanying notes to the financial statements. Actual results could differ from those estimates. Significant estimates include recording revenue for performance obligations recognized over time, determination of the fair value of share-based compensation grants, estimating services expended by third-party service providers used to recognize research and development expense and determination of the fair value of investments. Basis of Presentation These financial statements have been prepared in accordance with GAAP. Additionally, the accompanying financial statements have been prepared on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. The accompanying financial statements have been recast for all periods presented to reflect the assets, liabilities and expenses related to discontinued operations (discussed below). The accompanying financial statements are generally presented in conformity with the Company's historical format. Reverse Stock Split On February 13, 2024, the Company amended its amended and restated certificate of incorporation in order to effect a 1-for- 30 reverse stock split of its outstanding shares of capital stock (the “Reverse Stock Split”). As a result of the Reverse Stock Split, every 30 shares of the Company’s common stock issued or outstanding were automatically reclassified into one new share of common stock, subject to the treatment of fractional shares as described below, without any action on the part of the holders. All historical share and per-share amounts reflected throughout the accompanying consolidated financial statements and other financial information in this Annual Report on Form 10-K have been retroactively adjusted to reflect the 2024 Reverse Stock Split as if the split occurred as of the earliest period presented. The Reverse Stock Split did not affect the number of authorized shares of common stock or the par value of the common stock. No fractional shares were issued in connection with the Reverse Stock Split. Stockholders who would otherwise have been entitled to receive fractional shares as a result of the Reverse Stock Split were entitled to a cash payment in lieu thereof at a price equal to the fraction to which the stockholder would otherwise be entitled multiplied by the closing sales price per share of the common stock (as adjusted to give effect to the Reverse Stock Split) on The Nasdaq Capital Market on February 13, 2024, the last trading day immediately preceding the effective time of the Reverse Stock Split. Summary of Significant Accounting Policies Cash and Cash Equivalents As of December 31, 2023, the Company held cash equivalents which are composed of money market funds. As of December 31, 2022, the Company held cash equivalents which were composed of money market funds and repurchase agreements that were purchased through repurchase intermediary banks and collateralized by deposits in the form of government securities and obligations. Concentrations of Credit Risk Financial instruments that potentially subject the Company to concentrations of credit risk consist principally of cash, cash equivalents, and notes receivable. All of the Company’s cash and cash equivalents are held at financial institutions that management believes to be of high credit quality. The Company may maintain cash deposits in financial institutions in excess of government insured limits. The Company regularly invests excess cash deposits in money market funds and repurchase agreements. The Company believes that the credit risk arising from the holdings of these financial instruments is mitigated by the fact that these securities are of short duration, government backed and of high credit rating. The Company has not experienced any losses on cash and cash equivalents to date. Revenue from Prevail and Novartis accounted for 53 % and 47 % of revenue during the year ended December 31, 2023 , respectively. Revenue from Prevail and Novartis accounted for 62 % and 38 % of revenue during the year ended December 31, 2022, respectively. Prevail and Novartis accounted for 62 % and 38 % of deferred revenue as of December 31, 2023, respectively. In addition, the Company currently holds a $ 10.0 million promissory note payable from Elo (defined below) and a $ 13.0 million convertible note from Imugene US (defined below), which exposes the Company to potential losses in the event of default. Counterparty credit risk is monitored through periodic reviews of financial records. As of December 31, 2023, the Company considers the risk of counterparty default to be minimal. Property, Equipment and Software Property, equipment and software (“PP&E”) are stated at cost, net of depreciation and amortization. Depreciation and amortization are calculated using the straight-line method over the estimated useful lives of the assets ranging from three to seven years. Leasehold improvements are amortized on a straight-line basis over the shorter of the lease term or estimated useful life of the asset. The depreciation and amortization periods for the Company’s significant PP&E categories are as follows: Laboratory equipment 5 to 7 years Furniture and fixtures and office equipment 3 to 5 years Leasehold improvements Lesser of remaining lease term or useful life Repairs and maintenance are charged to operations as incurred, and expenditures for additions and improvements that extend the useful life of the asset are capitalized. Intangible Assets Intangible assets primarily include in-licenses and capitalized patent costs. The Company capitalizes license fees paid to acquire access to proprietary technology if the technology is expected to have alternative future use in multiple research and development projects. The cost of licensed technology rights is amortized using the straight-line method over the estimated useful life of the technology. If the access to use the technology rights is one year or less, the cost is recorded as a prepaid expense and amortized over the period identified in the agreement. Amortization expense for licensed technology and capitalized patent costs is included in research and development expenses within the accompanying statement of operations. Impairment Charges Long-lived assets, such as PP&E, intangible assets, and long-term prepaid assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. An impairment loss is assessed when future undiscounted cash flows are less than the assets’ carrying value and recognized when the carrying value of the asset exceeds fair value. Fair value is calculated by estimating the discounted future cash flows expected to be generated by the asset as well as other valuation techniques. An impairment charge is recognized for the amount by which the carrying amount exceeds the fair value of the asset. Fair Value Measurements Fair value is defined 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. When determining the fair value measurements for assets and liabilities, which are required to be recorded at fair value, we consider the principal or most advantageous market in which we would transact and the market-based risk measurements or assumptions that market participants would use in pricing the asset or liability, such as risks inherent in valuation techniques, transfer restrictions and credit risk. ASC 820, Fair Value Measurement , establishes a fair value hierarchy for instruments measured at fair value that distinguishes between assumptions based on market data (observable inputs) and the Company’s assumptions (unobservable inputs). Observable inputs are inputs that market participants would use in pricing the asset or liability based on market data obtained from our independent sources. Unobservable inputs are inputs that reflect the Company’s assumptions about the inputs that market participants would use in pricing the asset or liability, and are developed based on the best information available in the circumstances. The following fair value hierarchy is used to classify assets and liabilities based on the observable inputs and unobservable inputs used to value the assets and liabilities: • Level 1 - Observable inputs based on unadjusted quoted prices in active markets for identical assets or liabilities • Level 2 - Inputs, other than quoted prices in active markets, that are observable either directly or indirectly • Level 3 - Unobservable inputs for which there is little or no market date, which require the Company to develop its own assumptions To the extent that the valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires more judgment. A financial instrument’s level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. Investments in Equity Securities The Company carries investments in equity securities for which it does not possess the ability to exercise significant influence or control at fair value in the balance sheets and records changes in fair value in the statements of operations as a component of other income or expense. As of December 31, 2023 and December 31, 2022 the Company held common stock in iECURE (defined below) with a fair value of $ 3.2 million and $ 2.6 million, respectively. Investments under the Equity Method The Company utilizes the equity method to account for investments when it is determined that the Company possess the ability to exercise significant influence, but not control, over the operating and financial policies of the investee. The ability to exercise significant influence is presumed when the investor possesses more than 20 % of the voting interests of the investee. This presumption may be overcome based on specific facts and circumstances that demonstrate that the ability to exercise significant influence is restricted. In applying the equity method, the Company subsequently increases or decreases the carrying amount of the investment by the Company’s proportionate share of the net earnings or losses and other comprehensive income of the investee. In the event that net losses of the investee reduce the carrying amount to zero , additional net losses are recorded if other investments in the investee are at-risk, even if the Company has not committed to provide financial support to the investee. Leases At the inception of an arrangement, the Company determines whether the arrangement is or contains a lease based on the unique facts and circumstances present. Leases with a term greater than one year are recognized on the balance sheet as right-of-use assets and lease liabilities. The Company has elected not to recognize on the balance sheet leases with terms of one year or less. Lease liabilities and corresponding right-of-use assets are recorded based on the present value of lease payments over the expected remaining lease term. As the rate implicit in the Company's leases are not readily determinable, the Company utilizes its incremental borrowing rates, which are the rates incurred to borrow on a collateralized basis over a similar term an amount equal to the lease payments in a similar economic environment. Revenue Recognition for Contracts with Customers The Company’s revenues are generated primarily through collaborative research, license, development and commercialization agreements. ASC 606 applies to all contracts with customers, except for contracts that are within the scope of other standards. Under ASC 606, an entity recognizes revenue when its customer obtains control of promised goods or services, in an amount that reflects the consideration which the entity expects to receive in exchange for those goods or services. To determine revenue recognition for arrangements that an entity determines are within the scope of ASC 606, the entity performs the following five steps: (i) identify the contract(s) with a customer; (ii) identify the performance obligations in the contract; (iii) determine the transaction price; (iv) allocate the transaction price to the performance obligations in the contract; and (v) recognize revenue when (or as) the entity satisfies a performance obligation. At contract inception, once the contract is determined to be within the scope of ASC 606, the Company evaluates the performance obligations promised in the contract that are based on goods and services that will be transferred to the customer and determines whether those obligations are both (i) capable of being distinct and (ii) distinct in the context of the contract. Goods or services that meet these criteria are considered distinct performance obligations. If both these criteria are not met, the goods and services are combined into a single performance obligation. The Company then recognizes as revenue the amount of the transaction price that is allocated to the respective performance obligation when (or as) the performance obligation is satisfied. Arrangements that include rights to additional goods or services that are exercisable at a customer’s discretion are generally considered options. The Company assesses if these options provide a material right to the customer and if so, these options are considered performance obligations. The exercise of a material right is accounted for as a contract modification for accounting purposes. The Company recognizes as revenue the amount of the transaction price that is allocated to the respective performance obligation when (or as) each performance obligation is satisfied at a point in time or over time, and if over time this is based on the use of an output or input method. For the year ended December 31, 2023 , the Company recorded cumulative catch up adjustments on its contracts with partners that increased revenue recognition by $ 1.6 million; the cumulative catch-up adjustments resulted from a change in total estimated effort required to satisfy performance obligations and changes in variable consideration included in the transaction price related to estimated fees to be received from partners. During the year ended December 31, 2023 , the Company recorded $ 48.7 million in revenue that was included in deferred revenue as of December 31, 2022. Invoices issued as stipulated in contracts prior to revenue recognition are recorded as deferred revenue. Amounts expected to be recognized as revenue within the 12 months following the balance sheet date are classified as deferred revenue within current liabilities in the accompanying balance sheets. Amounts not expected to be recognized as revenue within the 12 months following the balance sheet date are classified as noncurrent deferred revenue. Amounts recognized as revenue, but not yet invoiced are generally recognized as contract assets in the other current assets line item in the accompanying balance sheets. Milestone Payments – If an arrangement includes development and regulatory milestone payments, the Company evaluates whether the milestones are considered probable of being reached and estimates the amount to be included in the transaction price using the most likely amount method. If it is probable that a significant revenue reversal would not occur, the associated milestone value is included in the transaction price. Milestone payments that are not within the Company’s or the licensee’s control, such as regulatory approvals, are not considered probable of being achieved until those approvals are received and therefore revenue recognized is constrained as management is unable to assert that a reversal of revenue would not be probable. The transaction price is then allocated to each performance obligation on a relative standalone selling price basis, for which the Company recognizes revenue as or when the performance obligations under the contract are satisfied. At the end of each subsequent reporting period, the Company re-evaluates the probability of achievement of such development milestones and any related constraint, and, if necessary, adjusts its estimate of the overall transaction price. Any such adjustments are recorded on a cumulative catch-up basis, which would affect collaboration revenues and earnings in the period of adjustment. Royalties – For arrangements that include sales-based royalties, including milestone payments based on a level of sales, which are the result of a customer-vendor relationship and for which the license is deemed to be the predominant item to which the royalties relate, the Company recognizes revenue at the later of (i) when the related sales occur, or (ii) when the performance obligation linked to some or all of the royalty has been satisfied or partially satisfied. To date, the Company has not recognized any royalty revenue resulting from any of its licensing arrangements. Significant Financing Component – In determining the transaction price, the Company adjusts consideration for the effects of the time value of money if the timing of payments provides the Company with a significant benefit of financing. The Company does not assess whether a contract has a significant financing component if the expectation at contract inception is such that the period between payment by the licensees and the transfer of the promised goods or services to the licensees will be one year or less. The Company assessed each of its revenue arrangements in order to determine whether a significant financing component exists and concluded that a significant financing component does not exist in any of its arrangements. Collaborative Arrangements – The Company has entered into collaboration agreements, which are within the scope of ASC 606, to discover, develop, manufacture and commercialize product candidates. The terms of these agreements typically contain multiple promises or obligations, which may include: (1) licenses, or options to obtain licenses, to use the Company’s technology, (2) research and development activities to be performed on behalf of the collaboration partner, and (3) in certain cases, services in connection with the manufacturing of preclinical and clinical material. Payments the Company receives under these arrangements typically include one or more of the following: non-refundable, upfront license fees; option exercise fees; funding of research and/or development efforts; clinical and development, regulatory, and sales milestone payments; and royalties on future product sales. The Company analyzes its collaboration arrangements to assess whether the collaboration agreements are within the scope of ASC 808, Collaborative Arrangements (“ASC 808”) to determine whether such arrangements involve joint operating activities performed by parties that are both active participants in the activities and exposed to significant risks and rewards dependent on the commercial success of such activities. This assessment is performed throughout the life of the arrangement based on changes in the responsibilities of all parties in the arrangement. For collaboration arrangements within the scope of ASC 808 that contain multiple elements, the Company first determines which elements of the collaboration are deemed to be within the scope of ASC 808 and those that are more reflective of a vendor-customer relationship and, therefore, are within the scope of ASC 606. For elements of collaboration arrangements that are accounted for pursuant to ASC 808, an appropriate recognition method is determined and applied consistently, generally by analogy to ASC 606. For those elements of the arrangement that are accounted for pursuant to ASC 606, the Company applies the five-step model described above. For additional discussion of accounting for collaboration revenues, see Note 10, Collaboration and License Agreements . Research and Development Research and development costs are expensed as incurred. Research and development expenses are comprised of costs incurred in performing research and development activities including salaries, benefits, share-based compensation, allocations for rent and facility costs, depreciation, preclinical manufacturing expenses, costs of services provided by contract research organizations (“CROs”) in connection with clinical trials and contract manufacturing organizations (“CMOs”) engaged to manufacture clinical trial material, costs of licensing technology, and costs of services provided by research and development service providers. Upfront payments and milestone payments made for the licensing of technology are expensed as research and development in the period in which they are incurred if the technology is not expected to have any alternative future uses other than the specific research and development project for which it was intended. Nonrefundable advance payments for goods or services to be received in the future for use in research and development activities are recorded as prepaid expenses. The prepaid amounts are expensed as the related goods are delivered or the services are performed rather than when the payment is made. The Company is required to estimate accrued research and development expenses resulting from its obligations under contracts with CROs, CMOs, research organizations, service providers, vendors and consultants in connection with research and development activities. The financial terms of these contracts are subject to negotiations and vary from contract to contract and may result in payment flows that do not match the periods over which materials or services are provided to the Company under such contracts. The Company’s objective is to reflect the appropriate research and development expenses in its statements of operations by matching those expenses with the period in which the services and efforts are expended. There may be instances in which payments made to the Company’s vendors will exceed the level of services provided and result in a prepayment of the expense. In accruing fees, the Company estimates the time period over which services will be performed and the level of effort to be expended in each period. If the actual timing of the performance of services or the level of effort varies from the Company’s estimate, the Company adjusts the accrual or amount of prepaid expense accordingly. Discontinued Operations The Company determined that its decision to no longer internally develop ex vivo allogeneic chimeric antigen receptor (“CAR T”) immunotherapies and related sale of our CAR T infrastructure to Imugene (defined below) met the criteria for classification as a discontinued operation in accordance with ASC Subtopic 205-20, Discontinued Operations . Accordingly, the accompanying financial statements for all periods have been updated to present the assets and liabilities associated with the development of ex vivo allogeneic CAR T immunotherapies separately as discontinued operations on the balance sheets and the results of all discontinued operations are reported as a separate component in the statements of operations. For additional information related to discontinued operations, refer to Note 6, Discontinued Operations. Comprehensive Loss Comprehensive loss includes net loss as well as other changes in stockholders’ equity that result from transactions and economic events other than those with stockholders. For the years ended December 31, 2023 and December 31, 2022 , there was no difference between net loss and comprehensive loss in the accompanying statements of operations. Net Loss Per Share Basic net loss per share is computed by dividing net loss attributable to common stockholders by the weighted-average number of shares of common stock outstanding during the period. Diluted net loss per share is computed using the weighted-average number of shares of common stock outstanding during the period and, if dilutive, the weighted-average number of potential shares of common stock. The Company’s diluted net loss per share is the same as basic net loss per share for the years ended December 31, 2023 and December 31, 2022 , given all potential shares of common stock are anti-dilutive as a result of the net loss. Share-Based Compensation The Company accounts for all share-based compensation awards, including stock options, restricted stock units and its employee stock purchase plan, at fair value. Compensation expense is recognized for the Company’s share-based compensation awards, net of actual forfeitures, over the requisite service period, which is the vesting period of the respective award. The fair value of each stock option grant is estimated on the date of grant using the Black-Scholes option-pricing model, which uses as inputs the fair value of the Company’s common stock and assumptions the Company makes for the expected volatility of its common stock, the expected term of the stock options, the risk-free interest rate for a period that approximates the expected term of the stock options and the Company’s expected dividend yield. Expected volatility is estimated based on the historical volatility of the Company and other comparable publicly traded peer companies. The expected term of the options has been determined utilizing a weighted average value considering actual exercise history and estimated expected term based on the midpoint of final vest date and expiration date. The risk-free interest rate is determined by reference to the U.S. Treasury yield curve in effect at the time of grant of the award for time periods approximately equal to the expected term of the award. Expected dividend yield is based on the fact that the Company has never paid cash dividends and does not expect to pay any cash dividends in the foreseeable future. The fair value of each restricted stock unit is determined based on the closing market price of the Company’s common stock on the date of grant. Income Taxes Deferred tax assets and liabilities are determined based on the temporary differences between the financial statement carrying amounts and the tax basis of assets and liabilities using the enacted tax rates in effect in the years in which the differences are expected to reverse. In estimating future tax consequences, all expected future events are considered other than the enactment of changes in the tax law or rates. Changes in deferred tax assets and liabilities are recorded in the provision for income taxes. The Company may recognize the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities based on the technical merits of the position. The tax benefits recognized in the financial statements from such a position is measured based on the largest benefit that has a greater than 50% likelihood of being realized upon ultimate settlement. The Company assesses the likelihood that its deferred tax assets will be recovered from future taxable income and, to the extent it believes, based upon the weight of available evidence, that it is more likely than not that all or a portion of the deferred tax assets will not be realized, a valuation allowance is established through a charge to income tax expense. Potential for recovery of deferred tax assets is evaluated by estimating the future taxable profits expected and considering prudent and feasible tax planning strategies. Accounting Standards Updates Accounting standards updates issued, but not effective until after December 31, 2023 , are not expected to have a material effect on the Company’s financial position, statements of operations or cash flows. |
Collaboration and License Agree
Collaboration and License Agreements | 12 Months Ended |
Dec. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
COLLABORATION AND LICENSE AGREEMENTS | NOTE 2: COLLABORATION AND LICENSE AGREEMENTS TG Therapeutics On January 7, 2024, the Company entered into a license agreement (the “TG License Agreement”) with TG Cell Therapy, Inc. (“TG Subsidiary”) and its parent company TG Therapeutics, Inc. (“TG Parent” and, together with TG Subsidiary, “TG Therapeutics”), pursuant to which the Company granted TG Subsidiary certain exclusive and non-exclusive license rights to develop, manufacture, and commercialize the Company’s allogeneic CAR T therapy azer-cel for autoimmune diseases and other indications outside of cancer (collectively referred to as licensed products). Under the TG License Agreement, the Company is entitled to receive an upfront cash payment of $ 10.0 million (the “TG Upfront Payment”), an additional cash payment of $ 7.5 million in the event that TG Therapeutics achieves a certain clinical milestone that is expected to be achieved in the near-term (the “Initial Milestone Payment”), and additional payments upon the achievement of additional specified milestones of up to $ 288.6 million (the “Additional TG Milestone Payments”). As described below, up to $ 10.0 million of the cash payments potentially payable to the Company are payable in exchange for the issuance to TG Subsidiary by the Company of shares of the Company’s common stock (the “Company Stock Issuances”). The TG Upfront Payment of $ 10.0 million is comprised of (i) a $ 5.25 million cash payment that was paid to the Company on February 5, 2024 , (ii) a $ 2.25 million cash payment that was paid to the Company on February 4, 2024 , in exchange for 97,360 shares of the Company’s common stock, based on a price per share equal to 200 % of the volume-weighted-average-price (“VWAP”) of the Company’s common stock for the 30 trading days prior to the date of the TG License Agreement, and (iii) a deferred cash payment of $ 2.5 million due within 12 months following the date of the TG License Agreement, payable in exchange for such number of shares of the Company’s common stock determined based on a price per share equal to the greater of (A) 200 % of the VWAP of the Company’s common stock for the 30 trading days prior to the date of payment or (B) a minimum price of $ 11.1660 determined in accordance with Nasdaq Listing Rule 5635(d) (the “Minimum Price”). The Initial Milestone Payment of $ 7.5 million, if payable, will consist of (i) a $ 5.25 million cash milestone payment and (ii) a $ 2.25 million cash payment payable in exchange for such number of shares of the Company’s common stock determined based on a price per share equal to the greater of (A) 200 % of the VWAP of the Company’s common stock for the 30 trading days prior to the achievement of such milestone or (B) the Minimum Price. The Additional TG Milestone Payments become due upon the achievement of certain milestones as specified in the TG License Agreement. Included within the Additional TG Milestone Payments is a potential payment of $ 3.0 million in connection with achievement of a milestone specified in the TG License Agreement, payable in exchange for such number of shares of the Company’s common stock determined based on a price per share equal to the greater of (A) 200 % of the VWAP of the Company’s common stock for the 30 trading days prior to the achievement of such milestone or (B) the Minimum Price. Subject to the terms and conditions of the TG License Agreement, TG Therapeutics is permitted to pay up to 50 % of the value of each Additional Milestone Payment (other than the Additional Milestone Payment described above that would, upon achievement, involve the issuance of $ 3.0 million of Shares by Precision) in freely tradable shares of common stock of TG Parent, valued based on the VWAP of the TG Parent shares of common stock on Nasdaq for the 30 trading days prior to the achievement of the applicable milestone. If a licensed product under the TG License Agreement is approved and sold, TG Therapeutics is also required to pay the Company tiered royalties ranging from high-single-digit to low-double-digit percentages on net sales of the licensed product. TG Therapeutics’ obligation to pay royalties to the Company expires on a country-by-country and licensed product-by-licensed product basis, upon the latest to occur of (i) the expiration of the last-to-expire valid claim in such country covering such licensed product; (ii) the expiration of any period of data, regulatory, or market exclusivity, or supplemental protection certificates (other than patents) covering the licensed product in such country; and (iii) a period of ten years following the first commercial sale of the respective licensed product in such country. Unless earlier terminated, the TG License Agreement will remain in effect on a licensed product-by-licensed product and country-by-country basis until the expiration of a defined royalty term for each licensed product and country. The Company may terminate the TG License Agreement if TG Therapeutics fails to initiate certain development activities with respect to the licensed product by a specified date or ceases active development of the licensed product for a specified period of time. In addition, the Company may terminate the TG License Agreement if TG Therapeutics or any of its affiliates or sublicensees challenges the validity of any patents controlled by the Company. Each of the Company and TG Therapeutics may terminate the TG License Agreement (i) for material breach by the other party and a failure to cure such breach within the time period specified in the TG License Agreement or (ii) the other party’s insolvency. Sale of Azer-cel CAR T Platform to Imugene On August 15, 2023, the Company entered into an asset purchase agreement (the “Imugene Purchase Agreement”) with Imugene Limited, and its wholly-owned subsidiary Imugene (USA) Inc. (“Imugene US” and together with Imugene Limited, “Imugene”). Pursuant to and simultaneously with the execution of the Imugene Purchase Agreement, on August 15, 2023 (the “Closing Date”), Imugene US acquired the Company’s manufacturing infrastructure used in the development and manufacture of azer-cel, including assuming the lease to the Company’s manufacturing facility and certain contracts of the Company with respect to the Company’s manufacturing facility, and related equipment, supplies, azer-cel clinical trial inventory and other assets related to the Company’s CAR T cell therapy platform. As part of the Imugene Purchase Agreement, Imugene US hired a number of employees of the Company who were associated with the Company’s historical CAR T cell therapy operations. In consideration for the assets acquired under the Imugene Purchase Agreement, Imugene US assumed certain liabilities of the Company, paid the Company $ 8 million in cash, and issued to the Company convertible notes pursuant to the terms and conditions set forth in a convertible note subscription deed (collectively, the “Imugene Convertible Note”) in an aggregate principal amount of $ 13 million. The Imugene Convertible Note is non-interest bearing and matures on the first anniversary of the Closing Date (the “Maturity Date”). On the Maturity Date, the Imugene Convertible Note will be redeemed with cash, converted into ordinary shares of Imugene Limited at a conversion price based on the 10-day volume weighted average price of Imugene Limited’s ordinary shares prior to the date of conversion, or partially redeemed with cash and partially converted into shares, at Imugene's discretion. Additionally, the Company and Imugene US entered into a license agreement (the “Imugene License Agreement”) on the Closing Date, pursuant to which the Company granted Imugene US certain exclusive and non-exclusive license rights to develop, manufacture, and commercialize oncological applications of the Company’s allogeneic CAR T therapy, azer-cel, and up to three additional research product candidates directed to targets that Imugene US may nominate prior to the fifth anniversary of the effective date of the Imugene License Agreement, pursuant to the terms of the Imugene License Agreement. In addition, under the Imugene License Agreement, the Company is eligible to receive milestone payments of up to an aggregate of $ 206 million for azer-cel, inclusive of a payment of $ 8 million in cash and equity upon successful completion of the Phase 1b dosing in the CAR T relapsed large B cell lymphoma (“LBCL”) patient population. For azer-cel, the Company is eligible to receive double-digit royalties on net sales. For up to three additional research programs to be developed by Imugene, the Company is eligible for up to $ 145 million in milestone payments and, if licensed products are approved and sold, tiered royalties ranging from the mid-single digit to low-double digit percentages on net sales of such licensed products. In addition, the Company is eligible to receive mid-single digit percentage-based fees for certain change of control transactions involving Imugene and for partnering transactions involving a licensed product. Imugene’s obligation to pay royalties to the Company expires on a country-by-country and licensed product-by-licensed product basis, upon the latest to occur of certain events related to expiration of patents, regulatory exclusivity or a period of ten years following the first commercial sale of the respective licensed product. Unless earlier terminated, the Imugene License Agreement will remain in effect on a licensed product-by-licensed product and country-by-country basis until the expiration of a defined royalty term for each licensed product and country. The Company may terminate the entire Imugene License Agreement due to a challenge to its patents brought by Imugene and a breach by Imugene in any material respect of the Imugene License Agreement, the Imugene Purchase Agreement or any related transaction documents. The Company may also terminate the Imugene License Agreement with respect to azer-cel if Imugene fails to initiate certain development activities with respect to azer-cel by a specified date, if Imugene fails to expend certain amounts on the development of azer-cel or if Imugene ceases active development of azer-cel for a specified period of time. Either party may terminate the License Agreement (i) for material breach by the other party and a failure to cure such breach within the time period specified in the agreement or (ii) the other party’s insolvency. The Company assessed the Imugene License Agreement in accordance with ASC 606 and concluded that the promises in the Imugene License represent a transaction with a customer. The Company has concluded that the Imugene License Agreement contains the following promises: (i) the license to develop, manufacture, and commercialize oncological applications of the azer-cel and up to three additional research product candidates and (ii) JSC (“Joint Steering Committee”) Participation. The JSC participation was determined to be an immaterial promise as the time commitment and related cost associated with performance of JSC participation is expected to be inconsequential to the total consideration in the contract. Accordingly, the Company concluded that the promise of the license is a single performance obligation. The Company concluded the Imugene License Agreement represents functional intellectual property in accordance with ASC 606 given the Company will not be providing any additional services to Imugene outside of the right to use the licensed intellectual property. As of December 31, 2023, management has constrained all variable consideration related to milestone payments in the Imugene License given the level of uncertainty associated with achievement of the milestone payments. Accordingly, no revenue was recognized under the Imugene License Agreement during the year ended December 31, 2023. Collaboration and License Agreement with Novartis On June 14, 2022, the Company entered into a collaboration and license agreement (the “Novartis Agreement”) with Novartis Pharma AG (“Novartis”), which became effective on June 15, 2022 (the “Novartis Effective Date”), to collaborate to discover and develop in vivo gene editing products incorporating our custom ARCUS nucleases for the purpose of seeking to research and develop potential treatments for certain diseases (collectively referred to as licensed products). Any initial licensed products under the Novartis Agreement will be developed for the potential treatment of certain hemoglobinopathies, including sickle cell disease and beta thalassemia. Pursuant to the terms of the Novartis Agreement, the Company will develop an ARCUS nuclease and conduct in vitro characterization for the licensed products, with Novartis then assuming responsibility for all subsequent development, manufacturing and commercialization activities. Novartis will receive an exclusive license for, and be required to use commercially reasonable efforts to conduct all subsequent research, development, manufacture and commercialization activities with respect to the licensed products. The Company will initially develop a single, custom ARCUS nuclease for a defined “safe harbor” target site for insertion of specified therapeutic payloads in the patient’s genome (the “Initial Nuclease”) for Novartis to further develop as a potential in vivo treatment option for certain hemoglobinopathies, including sickle cell disease and beta thalassemia. Pursuant to the terms of the Novartis Agreement, Novartis may elect, subject to payment of a fee to the Company, to replace licensed products based on the Initial Nuclease with licensed products based on a second custom ARCUS nuclease the Company designs for gene editing of a specified human gene target associated with hemoglobinopathies (the “Replacement Nuclease”). Additionally, Novartis has the option, upon payment of a fee to the Company for each exercise of the option, to include licensed products utilizing the Initial Nuclease for insertion of up to three additional specified therapeutic payloads at the “safe harbor” target site, each intended to treat a particular genetic disease. The exercise period for such option ends on the earlier of (a) the fourth anniversary of the Novartis Effective Date and (b) the replacement of the Initial Nuclease with the Replacement Nuclease as described above. In July 2022, the Company received a $ 50.0 million upfront cash payment under the Novartis Agreement. Additionally, on the Novartis Effective Date, Novartis made an equity investment in the Company’s common stock pursuant to a stock purchase agreement (the “Novartis Stock Purchase Agreement”) pursuant to which, on the Novartis Effective Date, the Company issued and sold to Novartis 413,581 shares of the Company’s common stock (the “Novartis Shares”) in a private placement transaction for an aggregate purchase price of $ 25.0 million, or approximately $ 60.30 per share. The price per share of the Company’s common stock under the Novartis Stock Purchase Agreement represented a 20 % premium over the volume-weighted-average-price of the Company’s common stock over the 10 trading days preceding the execution date of the Novartis Stock Purchase Agreement. Management concluded that the Novartis Stock Purchase Agreement was to be combined with the Novartis Agreement for accounting purposes. Of the total $ 75.0 million upfront compensation, the Company applied equity accounting guidance to measure the $ 11.6 million recorded in equity upon the issuance of the shares, and $ 63.4 million was identified as transaction price allocated to the revenue arrangement. Pursuant to the Novartis Stock Purchase Agreement, subject to certain exceptions, Novartis may not sell the Novartis Shares without the Company’s approval for a period of two years following the Novartis Effective Date. In addition, for a period of two years following the Novartis Effective Date, Novartis and its affiliates may not (a) effect or otherwise participate in, directly or indirectly, any acquisition of any of our securities or material assets, any tender offer or exchange offer, merger or other business combination or change of control involving the Company, any recapitalization, restructuring, liquidation, dissolution or other extraordinary transaction with respect to the Company, or any solicitation of proxies or consents to vote any of the Company’s securities or (b) act with any other person, or publicly disclose any intention, to do any of the foregoing. The Novartis Stock Purchase Agreement also contains customary representations, warranties, and covenants of both parties. On the Novartis Effective Date, the Company and Novartis also entered into a registration rights agreement (the “Registration Rights Agreement”) pursuant to which the Company has agreed, within the time periods specified in the Registration Rights Agreement, to register the resale of the Novartis Shares on a registration statement to be filed with the SEC. The Registration Rights Agreement contains customary indemnification provisions, and all registration rights terminate in their entirety effective on the first date on which there cease to be any Registrable Securities (as defined in the Registration Rights Agreement) outstanding. The Company will also be eligible to receive milestone payments of up to an aggregate of approximately $ 1.4 billion as well as certain research funding. If licensed products resulting from the collaboration are approved and sold, the Company will also be entitled to receive tiered royalties ranging from the mid-single digit to low-double digit percentages on net sales of licensed products, subject to customary potential reductions. Novartis’s obligation to pay royalties to us expires on a country-by-country and licensed product-by-licensed product basis, upon the latest to occur of certain events related to expiration of patents, regulatory exclusivity or a period of ten years following the first commercial sale of the licensed product. Unless earlier terminated, the Novartis Agreement will remain in effect on a licensed product-by-licensed product and country-by-country basis until the expiration of a defined royalty term for each licensed product and country. Novartis has the right to terminate the Novartis Agreement without cause by providing advance notice to the Company. Either party may terminate the Novartis Agreement for material breach by the other party and a failure to cure such breach within the time period specified in the Novartis Agreement. The Company may also terminate the Novartis Agreement in the event that Novartis brings a challenge to our patents. The Company assessed the Novartis Agreement in accordance with ASC 606 and concluded that the promises in the agreement represent transactions with a customer. The Company has determined that the promises associated with the research and development activities for each of the targets are not distinct because they are all based on the ARCUS proprietary genome editing platform. The Company has concluded that the agreement with Novartis contains the following promises: (i) license of intellectual property; (ii) performance of research and development (“R&D”) services, and (iii) Joint Steering Committee (“JSC”) participation. The Company determined that the license of intellectual property and R&D services were not distinct from each other, as the license and R&D services are highly interdependent upon one another. The JSC participation was determined to be an immaterial promise as the time commitment and related cost associated with performance of JSC participation is expected to be inconsequential to the total consideration in the contract. As such, the Company determined that these promises should be combined into a single performance obligation. The Company recognizes revenue from the $ 50.0 million upfront cash payment, $ 13.4 million allocated to the transaction price from the Novartis Stock Purchase Agreement, and variable consideration on an input method in the form of research effort relative to expected research effort at the completion of the performance obligation, which is based on the actual hours of research work performed relative to expected hours of research work to be incurred in the future to satisfy the performance obligation. Management will evaluate and adjust the total expected research effort for the performance obligation on a quarterly basis based upon actual research hours incurred to date relative to research hour forecasts. The transfer of control occurs over this time period and, in management’s judgment, is the best measure of progress towards satisfying the performance obligation. During the years ended December 31, 2023 and 2022, the Company recognized revenue under the Novartis Agreement of $ 22.7 million and $ 9.5 million, respectively. Deferred revenue related to the Novartis Agreement amounted to $ 32.4 million and $ 54.2 million as of December 31, 2023 and December 31, 2022, respectively, of which $ 7.4 million and $ 27.9 million, respectively, was included in current liabilities within the balance sheets. Development and License Agreement with Prevail On November 19, 2020, the Company entered into a development and license agreement with Eli Lilly and Company (“Lilly”) to collaborate to discover and develop in vivo gene editing products incorporating the Company’s ARCUS nucleases to utilize ARCUS for the research and development of potential in vivo therapies for genetic disorders, which was subsequently assigned to Prevail Therapeutics Inc., a wholly-owned subsidiary of Eli Lilly and Company (“Prevail”), effective November 1, 2022 (the “Original Prevail Agreement”). On June 30, 2023, the Company entered into an amended and restated development and license agreement (the “Prevail Agreement”) with Prevail. The Prevail Agreement amends and restates the Original Prevail Agreement. Pursuant to the terms of the Prevail Agreement, Prevail and the Company will continue to collaborate on developing the Company’s ARCUS nucleases for the research and development of potential in vivo therapies for genetic disorders, including Duchenne muscular dystrophy, a liver-directed target, and a central nervous system directed target. Prevail also continues to have the right to nominate up to three additional gene targets for genetic disorders over the initial nomination period of four years. Prevail may extend the nomination period for an additional two years from the date on which such initial nomination period ends, upon Prevail’s election and payment of an extension fee. Additionally, Prevail has the option to replace up to two gene targets upon Prevail's election and payment of a replacement target fee. The Company will continue to oversee creation, selection, in vitro development, and optimization of ARCUS nucleases with respect to the gene targets subject to the collaboration. Prevail will oversee and fund preclinical research and IND-enabling activities which were previously to be conducted by the Company at the Company's expense. Manufacturing initial clinical trial material for the first licensed product, which was previously the Company’s responsibility to conduct at Prevail’s expense, will instead be Prevail’s responsibility at Prevail’s expense. Prevail will continue to be responsible for, and must use commercially reasonable efforts with respect to, conducting clinical development and commercialization activities for licensed products resulting from the collaboration. In connection with the closing of the Original Prevail Agreement on January 6, 2021, the Company received an upfront cash payment of $ 100.0 million. Under the Prevail Agreement, the Company will also be eligible to receive milestone payments of up to an aggregate of $ 390 million to $ 395 million per licensed product, a decrease from $ 420 million as provided in the Original Prevail Agreement, as well as nomination fees for additional and replacement targets and certain research funding. The terms of potential nomination fees for additional targets and royalties on worldwide net sales of licensed products for which the Company may become eligible, as well as the terms of the Company’s right to elect to co-fund the clinical development of one licensed product under the Original Prevail Agreement, are not modified by the terms of the Prevail Agreement. If licensed products resulting from the collaboration are approved and sold, the Company will also be entitled to receive tiered royalties ranging from the mid-single digit percentages to the low-teens percentages on world-wide net sales of the licensed products, subject to customary potential reductions. Prevail’s obligation to pay royalties to the Company expires on a country-by-country and licensed product-by-licensed product basis, upon the latest to occur of certain events related to expiration of patents, regulatory exclusivity or a period of ten years following first commercial sale of the licensed product. Simultaneously with the entry into the Original Prevail Agreement, the Company and Lilly entered into a Share Purchase Agreement (the “Lilly Share Purchase Agreement”), pursuant to which Lilly purchased 125,406 shares of the Company’s common stock for a purchase price of $ 35.0 million. Management concluded that the Lilly Share Purchase Agreement was to be combined with the Original Prevail Agreement for accounting purposes. Of the total $ 135.0 million upfront compensation, the Company applied equity accounting guidance to measure the $ 27.7 million recorded in equity upon the issuance of the shares, and $ 107.3 million was identified as the transaction price allocated to the revenue arrangement. The Company assessed this arrangement in accordance with ASC 606 and concluded that the promises in the agreement represent transactions with a customer. The Company has determined that the promises associated with the research and development activities for each of the targets are not distinct because they are all based on the ARCUS proprietary genome editing platform. The Company has concluded that the agreement with Prevail contains the following promises: (i) license of intellectual property; (ii) performance of R&D services, (iii) JSC Participation, and (iv) regulatory responsibilities. The Company determined that the license of intellectual property, R&D services, and regulatory responsibilities were not distinct from each other, as the license, R&D services, and regulatory responsibilities are highly interdependent upon one another. The JSC participation was determined to be an immaterial promise as the time commitment and related cost associated with performance of JSC participation is expected to be inconsequential to the total consideration in the contract. As such, the Company determined that these promises should be combined into a single performance obligation. The Company recognizes revenue from the $ 100.0 million upfront cash payment, $ 7.3 million allocated to the transaction price from the Lilly Share Purchase Agreement, and variable consideration on an input method in the form of research effort relative to expected research effort at the completion of the performance obligation, which is based on the actual time of R&D activities performed relative to expected time to be incurred in the future to satisfy the performance obligation. Management evaluates and adjusts the total expected research effort for the performance obligation on a quarterly basis based upon actual research progress to date relative to research progress forecasts. The transfer of control occurs over this time period and, in management’s judgment, is the best measure of progress towards satisfying the performance obligation. During the years ended December 31, 2023 and 2022, the Company recognized revenue under the Prevail Agreement of $ 26 .0 million and $ 15.6 million, respectively. Deferred revenue related to the Prevail Agreement amounted to $ 52.7 million and $ 74.8 million as of December 31, 2023 and December 31, 2022, respectively, of which $ 4.7 million and $ 18.3 million, respectively, was included in current liabilities within the balance sheets. Development and License Agreement with iECURE In August 2021, the Company entered into a development and license agreement with iECURE (the “iECURE DLA”) under which iECURE was to advance the Company’s PBGENE-PCSK9 candidate through preclinical activities as well as a Phase 1 clinical trial in order to gain access to Precision’s PCSK9-directed ARCUS nuclease to develop four other pre-specified gene editing therapies for rare genetic diseases (the “PCSK9 License”), including ornithine transcarbamylase (“OTC”) deficiency, Citrullinemia Type 1 (“CTLN1”), Phenylketonuria, and another program focused on liver disease. Simultaneously with the entry into the iECURE DLA, the Company and iECURE entered into an Equity Issuance Agreement (the “iECURE Equity Agreement”), pursuant to which iECURE issued the Company common stock in iECURE as additional consideration for the PCSK9 license. Management concluded that the iECURE Equity Agreement was to be combined with the iECURE DLA (together, the “iECURE Agreements”) for accounting purposes. Additionally, the Company is eligible to receive milestone and mid-single digit to low double digit royalty payments on sales of iECURE products developed with ARCUS. The Company adjusts the carrying value of the iECURE equity to fair value each reporting period with any changes in fair value recorded to other income (expense). During the year ended December 31, 2023, the Company recorded a $ 0.6 million increase in the carrying value of its iECURE equity to adjust to fair value as iECURE has progressed towards a clinical trial for OTC deficiency . During the year ended December 31, 2022, the Company recorded a $ 0.5 million decrease in the carrying value of its iECURE equity to adjust to fair value as a result of dilution from iECURE’s Series A-1 equity issued in such period. The fair value of the costs to be incurred by iECURE to progress the Company’s PBGENE-PCSK9 candidate through the Phase 1 clinical trial (the “PCSK9 Prepaid”) was recorded to the prepaid expenses and other assets line items of the Company's balance sheets. The PCSK9 Prepaid was amortized to research and development expense on a pro-rata basis as iECURE incurred costs to progress the PBGENE-PCSK9 candidate through a Phase 1 clinical trial. During the year ended December 31, 2022, the Company recognized $ 2.1 million of research and development expense related to amortization of the PCSK9 Prepaid. The remaining unamortized PCSK9 Prepaid was fully impaired during the year ended December 31, 2022 as the Company made the decision to cease pursuit of PBGENE-PCSK9 for familial hypercholesterolemia with iECURE as its partner in December 2022. Accordingly, there was no PCSK9 Prepaid balance as of December 31, 2023 or December 31, 2022. |
Share-Based Compensation
Share-Based Compensation | 12 Months Ended |
Dec. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
SHARE-BASED COMPENSATION | NOTE 3: SHARE-BASED COMPENSATION The Company previously granted stock options under its 2015 Stock Incentive Plan (the “2015 Plan”). As of December 31, 2023 there were 36,552 stock options outstanding under the 2015 Plan and no remaining stock options available to be granted under the 2015 Plan. On March 12, 2019, the Company’s board of directors adopted, and, on March 14, 2019 the Company’s stockholders approved, the Precision BioSciences, Inc. 2019 Incentive Award Plan (“2019 Plan”) and the 2019 Employee Stock Purchase Plan (“2019 ESPP”), both of which became effective on March 27, 2019. The 2019 Plan provides for the grant of incentive stock options, non-qualified stock options, stock appreciation rights, restricted stock, restricted stock units and other share-based awards. The 2019 Plan had 211,303 stock options and 214,857 restricted stock units (“RSUs”) outstanding as of December 31, 2023. The number of shares available for issuance under the 2019 Plan initially equaled 158,333 shares of common stock. The 2019 Plan provides for an annual increase to the number of shares of common stock available for issuance on the first day of each calendar year beginning January 1, 2020 and ending on and including January 1, 2029 by an amount equal to the lesser of (i) 4 % of the aggregate number of shares of common stock outstanding on the final day of the immediately preceding calendar year and (ii) such smaller number of shares of common stock as determined by the board of directors. As of December 31, 2023 , the aggregate number of shares available for issuance under the 2019 Plan has been increased by 367,616 pursuant to this provision. Any shares that are subject to awards outstanding under the Company’s 2006 Plan and 2015 Plan as of the effective date of the 2019 Plan that expire, lapse, or are terminated, exchanged for cash, surrendered, repurchased, or canceled without having been fully exercised or forfeited, to the extent so unused, will become available for award grants under the 2019 Plan. As of December 31, 2023 , 122,630 shares were available to be issued under the 2019 Plan. Up to 17,500 shares of the Company’s common stock were initially reserved for issuance under the 2019 ESPP. The 2019 ESPP provides for an annual increase to the number of shares available for issuance on the first day of each calendar year beginning January 1, 2020 and ending on and including January 1, 2029 by an amount equal to the lesser of (i) 1 % of the shares outstanding on the final day of the immediately preceding calendar year and (ii) such smaller number of shares as is determined by our board of directors. As of December 31, 2023 , the aggregate number of shares available for issuance under the 2019 ESPP has been increased by 91,903 shares pursuant to this provision. The purchase price of the shares under the 2019 ESPP, in the absence of a contrary designation, will be 85 % of the lower of the fair market value of our common stock on the first trading day of the offering period or on the purchase date. As of December 31, 2023 , we had issued 33,080 shares under the 2019 ESPP. As of December 31, 2023 , 76,323 shares were available to be issued under the 2019 ESPP. The Company recognized share-based compensation expense related to the ESPP of $ 0.1 million and $ 0.2 million during the years ended December 31, 2023 and 2022, respectively. On August 9, 2021, the Company’s board of directors approved the adoption of the Precision BioSciences, Inc. 2021 Employment Inducement Incentive Award Plan (as amended, the “Inducement Award Plan”). The Inducement Award Plan provides for the grant of non-qualified stock options, stock appreciation rights, restricted stock, RSUs and other share-based awards to newly hired employees who have not previously been an employee or member of the board, or an employee who is being rehired following a bona fide period of non-employment by the Company. No more than 300,000 shares of the Company’s common stock may be issued under the Inducement Award Plan. As of December 31, 2023 , 190,739 shares were available to be issued under the Inducement Award Plan. The Inducement Award Plan had 101,807 stock options and no RSUs outstanding as of December 31, 2023. The Company recorded employee and nonemployee share-based compensation expense as follows (in thousands): Years Ended December 31, 2023 2022 Employee $ 12,364 $ 15,921 Nonemployee 1,676 3,276 $ 14,040 $ 19,197 Share-based compensation expense is included in the following line items in the statements of operations (in thousands): Years Ended December 31, 2023 2022 Research and development $ 4,355 $ 7,973 General and administrative 9,685 11,224 $ 14,040 $ 19,197 Determining the appropriate fair value model to measure the fair value of the stock option grants on the date of grant and the related assumptions requires judgment. The fair value of each stock option grant is estimated using a Black-Scholes option-pricing model on the date of grant as follows: Years Ended December 31, 2023 2022 Estimated dividend yield 0.00 % 0.00 % Weighted-average expected stock price volatility 87.15 % 79.66 % Weighted-average risk-free interest rate 3.89 % 2.57 % Expected term of options (in years) 5.78 6.07 Weighted-average fair value per option $ 17.41 $ 55.91 The expected volatility rates are estimated based on the actual volatility of a peer group comprising the Company and other comparable public companies over the expected term. The expected term represents the average time that stock options are expected to be outstanding. The Company does not have sufficient history of exercising stock options to estimate the expected term of employee stock options and thus utilizes a weighted value considering actual history and estimated expected term based on the midpoint of final vest date and expiration date. The risk-free rate is based on the United States Treasury yield curve at the time of grant for the expected term of the option. The following table summarizes activity in the Company’s stock option plans for the years ended December 31, 2022 and December 31, 2023 : Outstanding Weighted- Balance as of December 31, 2021 330,386 278.33 Granted 223,670 80.71 Exercised ( 11,186 ) 35.13 Forfeited/canceled ( 85,773 ) 259.72 Balance as of December 31, 2022 457,097 191.07 Granted 20,443 23.61 Exercised ( 3,196 ) 9.59 Forfeited/canceled ( 124,682 ) 221.38 Balance as of December 31, 2023 349,662 172.13 The intrinsic value of stock options exercised was less than $ 0.1 million and $ 0.7 million during the years ended December 31, 2023 and December 31, 2022, respectively. During the year ended December 31, 2023, the Company granted 161,161 RSUs with a grant date fair value of $ 5.6 million. The fair value of the RSUs will be recognized as expense over the requisite vesting period. The following table summarizes the Company’s RSU activity for the years ended December 31, 2022 and December 31, 2023: RSU Awards Weighted-Average Grant Date Fair Value Unvested RSUs as of December 31, 2021 25,668 338.76 Granted 110,842 78.73 Forfeited ( 6,404 ) 214.04 Vested ( 9,556 ) 336.29 Unvested RSUs as of December 31, 2022 120,550 106.49 Granted 161,161 34.49 Forfeited ( 19,961 ) 109.19 Vested ( 46,893 ) 112.02 Unvested RSUs As of December 31, 2023 214,857 51.03 There was approximately $ 16.7 million of total unrecognized compensation cost related to unvested stock options and RSUs as of December 31, 2023, which is expected to be recognized over a weighted-average period of 1.8 years. The following table summarizes certain information about stock options granted under the stock option plans which are vested or expected to vest as of December 31, 2023 and December 31, 2022. Years Ended December 31, Number of Options Weighted- Weighted- 2023 Expected to be exercisable 349,662 7.15 $ 172.13 2023 Currently exercisable 223,019 6.58 $ 199.00 2022 Expected to be exercisable 457,097 6.59 $ 191.07 2022 Currently exercisable 176,113 4.56 $ 275.62 The following table summarizes certain information about stock options outstanding under the stock option plans for the years ended December 31, 2023 and December 31, 2022, respectively: Year Ended December 31, 2023 Exercise price Number of Options Outstanding Weighted- Average Number of Options Exercisable $ 12.30 - $ 46.50 67,401 7.65 27,084 $ 50.40 - $ 100.20 77,327 8.34 49,906 $ 122.40 - $ 174.90 64,477 7.35 35,163 $ 189.30 - $ 293.70 65,372 7.10 46,526 $ 305.10 - $ 480.00 75,085 5.33 64,340 349,662 223,019 Year Ended December 31, 2022 Exercise price Number of Options Outstanding Weighted- Average Number of Options Exercisable $ 0.60 - $ 46.50 67,565 7.03 20,547 $ 50.40 - $ 100.20 81,367 9.14 194 $ 122.40 - $ 136.80 73,906 7.13 47 $ 170.10 - $ 293.70 117,590 5.85 69,761 $ 305.10 - $ 480.00 116,669 4.96 85,564 457,097 176,113 |
Property, Equipment and Softwar
Property, Equipment and Software and Assets Held for Sale | 12 Months Ended |
Dec. 31, 2023 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY, EQUIPMENT AND SOFTWARE AND ASSETS HELD FOR SALE | NOTE 8: PROPERTY, EQUIPMENT AND SOFTWARE AND ASSETS HELD FOR SALE PP&E consisted of the following as of December 31 (in thousands): 2023 2022 Construction in progress $ 70 $ 520 Leasehold improvements 11,945 11,946 Software 432 442 Laboratory equipment 15,856 17,271 Office equipment 1,399 1,408 Furniture and fixtures 2,124 2,097 Total property, equipment and software 31,826 33,684 Less accumulated depreciation and amortization 25,488 21,869 Property, equipment and software - net $ 6,338 $ 11,815 Depreciation expense for continuing operations, including amortization of leasehold improvements and software, was $ 5.2 million for the years ended December 31, 2023 and 2022. As of December 31, 2023, the Company had $ 0.5 million in property, plant, and equipment that met the criteria for classification as held for sale. These assets are recognized at the lower of net book value or fair value less costs to sell using a market approach. The Company evaluated the fair value of its assets held for sale and determined fair value of the assets held for sale less costs to sell exceeded net book value. Accordingly, the Company recorded an impairment of $ 0.5 million on assets held for sale during the year ended December 31, 2023 to reflect the difference between net book value and the fair value less costs to sell of assets held for sale. The related impairment is recognized in the accompanying statement of operations in the loss on disposal of assets line item. |
Intangible Assets
Intangible Assets | 12 Months Ended |
Dec. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets | NOTE 9: INTANGIBLE ASSETS Intangible assets, net, consisted of the following as of December 31 (in thousands): 2023 2022 License cost $ 548 $ 910 Less: accumulated amortization ( 148 ) ( 179 ) Intangible assets, net $ 400 $ 731 Amortization expense of intangible assets was less than $ 0.1 million and $ 0.1 million for the years ended December 31, 2023 and December 31, 2022 , respectively. Amortization expense for intangible assets with definite lives will be less than $ 0.1 million for each of the next five years with the remaining $ 0.2 million amortized to expense in 2029 and beyond. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2023 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Abstract] | |
FAIR VALUE MEASUREMENTS | NOTE 10: FAIR VALUE MEASUREMENTS The following represents assets measured at fair value on a recurring basis by the Company (in thousands): December 31, 2023 Fair Value Level 1 Level 2 Level 3 Assets: Money market funds $ 13,960 $ 13,960 $ — $ — Investment in iECURE 3,206 — — 3,206 Imugene convertible note 11,897 — 11,897 — Assets held for sale 487 — — 487 $ 29,550 $ 13,960 $ 11,897 $ 3,693 Liabilities: Final payment fee $ 215 $ — $ 215 $ — $ 215 $ — $ 215 $ — December 31, 2022 Fair Value Level 1 Level 2 Level 3 Assets: Money market funds $ 868 $ 868 $ — $ — Repurchase agreements 40,000 — 40,000 — Investment in iECURE 2,576 — — 2,576 $ 43,444 $ 868 $ 40,000 $ 2,576 Liabilities: Final payment fee $ 199 $ — $ 199 $ — $ 199 $ — $ 199 $ — The following represents a reconciliation of assets measured and carried at fair value on a recurring basis with the use of significant unobservable inputs (Level 3) for the year ended December 31, 2023 (in thousands): Investment in iECURE Balance December 31, 2022 $ 2,576 Additions — Gains from changes in fair value included in earnings 630 Balance December 31, 2023 $ 3,206 The carrying amounts of the Company’s financial instruments, including accounts receivable, accounts payable, and accrued expenses and other current liabilities, approximate their respective fair values due to their short-term nature. The Company uses a three-tier fair value hierarchy to classify and disclose all assets and liabilities measured at fair value on a recurring basis and to minimize the use of unobservable inputs when determining their fair value. The three tiers are defined as follows: Level 1—Observable inputs based on unadjusted quoted prices in active markets for identical assets or liabilities Level 2—Inputs, other than quoted prices in active markets, that are observable either directly or indirectly Level 3—Unobservable inputs for which there is little or no market data, which require the Company to develop its own assumptions Cash Equivalents As of December 31, 2023, the Company held cash equivalents which are composed of money market funds. As of December 31, 2022, the Company held cash equivalents which were composed of money market funds and repurchase agreements that were purchased through repurchase intermediary banks and collateralized by deposits in the form of government securities and obligations. The Company classifies investments in money market funds within Level 1 of the fair value hierarchy as the prices are available from quoted prices in active markets. Investments in repurchase agreements are classified within Level 2 of the fair value hierarchy as these instruments are valued using observable market inputs including reported trades, broker/dealer quotes, bids and/or offers. Investment in iECURE In August 2021, the Company entered into an Equity Issuance Agreement with iECURE, Inc. (“iECURE”), pursuant to which iECURE issued the Company common stock in iECURE (the “iECURE equity”) as additional consideration for a license to use the Company’s PCSK9-directed ARCUS nuclease to insert genes into the PCSK9 locus to develop treatments for four pre-specified rare genetic diseases (the “PCSK9 license”). On issuance, the Company accounted for the iECURE equity at fair value under ASC 825, Financial Instruments (“ASC 825”). Accordingly, the Company adjusts the carrying value of the iECURE equity to fair value each reporting period with any changes in fair value recorded to other income (expense). During the year ended December 31, 2023, the Company recorded a $ 0.6 million increase in the carrying value of its iECURE equity to adjust to fair value. The Company classifies the iECURE equity within Level 3 of the fair value hierarchy as the assessed fair value was based on significant unobservable inputs given iECURE equity is not traded on a public exchange Assets Held for Sale The fair values of property, plant, and equipment held for sale is classified as Level 3 in the fair value hierarchy due to a mix of unobservable inputs utilized such as independent research in the market as well as actual quotes from market participants. Imugene Convertible Note As partial consideration for the assets acquired by Imugene in connection with the Purchase Agreement, Imugene US issued to the Company the Imugene Convertible Note in an aggregate principal amount of $ 13 million. The Imugene Convertible Note is non-interest bearing and matures on August 15, 2024 . On the Maturity Date, the Imugene Convertible Note must be redeemed with cash, converted into ordinary shares of Imugene Limited at a conversion price based on the 10-day volume weighted average price of Imugene Limited’s ordinary shares prior to the date of conversion, or partially redeemed with cash and partially converted into shares, at Imugene’s discretion. The Company classifies the Imugene Convertible Note within Level 2 of the fair value hierarchy as the assessed fair value is based on observable market inputs including the risk-free rate and the ordinary share price, volume, and volatility. Final Payment Fee The Company is required to pay a final payment fee upon maturity of the Revolving Line (as defined in Note 12, Debt , below). The final payment fee was determined to be a derivative under ASC 815, therefore these fees were initially measured at fair value and recorded as debt discount to be amortized to interest expense over the term of the Revolving Line. Accordingly, the Company will adjust the carrying value of the final payment fee to fair value each reporting period with any changes in fair value recorded to other income (expense). There was an assessed loss on change in fair value of the final payment fee of less than $ 0.1 million during the year ended December 31, 2023. The Company classifies the final payment fee within Level 2 of the fair value hierarchy as the assessed fair value is based on observable market inputs including the Company’s current borrowing rate. The final payment fee is included in other current liabilities within the balance sheet as of December 31, 2023 and other noncurrent liabilities within the balance sheet as of December 31, 2022. |
Debt
Debt | 12 Months Ended |
Dec. 31, 2023 | |
Debt Disclosure [Abstract] | |
DEBT | NOTE 12: DEBT Pursuant to the terms of the loan and security agreement with Pacific Western Bank (“PWB”) the Company may request advances on a revolving line of credit of up to an aggregate principal amount of $ 30.0 million (as amended from time to time, the “Revolving Line”) at an interest rate equal to the greater of (a) 0.75 % above the Prime rate (as defined in the Revolving Line) and (b) 4.25 %. As of December 31, 2023, the stated interest rate on the Revolving Line was 9.25 % and the effective interest rate was 10.3 %. The Revolving Line maturity date is June 23, 2024 and all outstanding principal amounts are due upon maturity. The Company must also maintain an aggregate balance of unrestricted cash at PWB (not including amounts in certain specified accounts) equal to or greater than $ 10.0 million. As of December 31, 2023 and December 31, 2022, $ 22.5 million in borrowings were outstanding under the Revolving Line and the unamortized debt discount balance was less than $ 0.1 million and $ 0.3 million, respectively. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | NOTE 13: COMMITMENTS AND CONTINGENCIES Litigation The Company is subject to various legal matters and claims in the ordinary course of business. Although the results of legal proceedings and claims cannot be predicted with certainty, in the opinion of management, there are currently no such known matters that will have a material effect on the financial condition, results of operations or cash flows of the Company. Servier Program Purchase Agreement On April 9, 2021, the Company entered into a program purchase agreement with Les Laboratoires Servier and Institut de Recherches Internationales Servier (collectively, “Servier”), pursuant to which the Company reacquired all of its global development and commercialization rights previously granted to Servier pursuant to the Development and Commercial License Agreement by and between Servier and the Company, dated February 24, 2016, as amended (the “Servier Agreement”), and mutually terminated the Servier Agreement (the “Program Purchase Agreement”). The Program Purchase Agreement requires the Company to make certain payments to Servier based on the achievement of regulatory and commercial milestones for each product. Management assessed the likelihood of each of the regulatory and commercial milestones included in the Program Purchase Agreement in accordance with ASC 450, Contingencies (“ASC 450”). If the assessment of a contingency indicates that it is probable that the milestone will be achieved and the amount of the liability can be estimated, then the estimated liability would be accrued in the Company’s financial statements. Accordingly, contingent liabilities of $ 10.0 million related to the Program Purchase Agreement are accrued and included in contract liabilities in the balance sheets as of December 31, 2023 and December 31, 2022. Leases The Company has an operating lease for real estate in North Carolina and does not have any finance leases. On October 16, 2023, the Company and Venable Historic, LLC, successor-in-interest to Venable Tenant, LLC (the “Landlord”), entered into a Tenth Amendment to Lease Agreement (the “Lease Amendment”), which amended certain terms of the Lease Agreement dated April 5, 2010, as amended (the “Original Lease”) with respect to the Company’s headquarters facilities located in Durham, North Carolina. Among other things, the Lease Amendment extends the term of the Original Lease for an additional period of five years commencing upon August 1, 2024 and up to and through July 31, 2029. The Company has existing leases in which the non-lease components (e.g., common area maintenance, consumables, etc.) are paid separately from rent based on actual costs incurred and therefore are not included in the right-of-use assets and lease liabilities but rather reflected as an expense in the period incurred. The elements of lease expense were as follows: For the Years Ended December 31, (in thousands) 2023 2022 Lease Cost Operating lease cost $ 2,043 $ 1,644 Short-term lease cost 742 563 Variable lease cost 692 746 Sublease income ( 137 ) — Total Lease Cost $ 3,340 $ 2,953 Other Information Operating cash flows used for operating leases 2,026 2,264 Operating right-of-use assets obtained in exchange for lease obligations 9,955 — Operating lease liabilities arising from obtaining right-of-use assets 9,328 — Operating Leases Weighted average remaining lease term (in years) 5.6 2.9 Operating Leases Weighted average discount rate 9.2 % 7.7 % Future lease payments under non-cancelable operating leases with terms of greater than one year as of December 31, 2023, were as follows: (in thousands) December 31, 2023 2024 $ 1,888 2025 1,962 2026 2,019 2027 2,078 2028 2,140 2029 and beyond 1,269 Total lease payments 11,356 Less: imputed interest 2,500 Total operating lease liabilities $ 8,856 Guarantees The Company agreed to act as a guarantor of Imugene’s assumption of the MCAT lease through the lease expiration date of August 31, 2027 . If Imugene fails to pay rent due on the MCAT Lease, the lessor may have contractual recourse against the Company. As of December 31, 2023, the Company’s guarantee consists of a contingent liability for aggregate minimum lease payments of approximately $ 5.8 million. No contract liability for the Company's guarantee of Imugene’s performance on the MCAT lease was recorded as of December 31, 2023, as it was not deemed probable that Imugene will be in default under the MCAT Lease. Supply Agreements The Company enters into contracts in the normal course of business with CMOs for the manufacture of clinical trial materials and CROs for clinical trial services. These agreements provide for termination at the request of either party with less than one-year notice and are, therefore, cancelable contracts and, if canceled, are not anticipated to have a material effect on the financial condition, results of operations, or cash flows of the Company. |
Retirement Plan
Retirement Plan | 12 Months Ended |
Dec. 31, 2023 | |
Retirement Benefits [Abstract] | |
Retirement Plan | NOTE 4: RETIREMENT PLAN In January 2011, the Company established a defined contribution 401(k) retirement savings plan (the “Retirement Plan”) available to all full-time employees. Employee contributions to the Retirement Plan can be 100 % of annual compensation up to the prescribed annual maximum under the Internal Revenue Code. Administrative fees of less than $ 0.1 million were paid by the Company for the years ended December 31, 2023 and December 31, 2022. The Retirement Plan includes a safe-harbor matching employer contribution equal to 100 % of participants’ deferral contributions up to 4 %. The Company made contributions of $ 0.9 million to the Retirement Plan during each of the years ended December 31, 2023 and December 31, 2022 , respectively. Retirement plan contributions made by the Company are recorded to research and development expense and general and administrative expense as incurred and are included in the statements of operations. |
Impairment Charges
Impairment Charges | 12 Months Ended |
Dec. 31, 2023 | |
Asset Impairment Charges [Abstract] | |
IMPAIRMENT CHARGES | NOTE 5: IMPAIRMENT CHARGES The Company did no t record any impairment charges in continuing operations during the year ended December 31, 2023. During the year ended December 31, 2022, the Company recorded impairment charges of $ 10.8 million related to the PCSK9 Prepaid as the Company made the decision to cease pursuit of PBGENE-PCSK9 for FH with iECURE as its partner. The impairment charge represented the remaining unamortized balance of the PCSK9 Prepaid. |
Discontinued Operations
Discontinued Operations | 12 Months Ended |
Dec. 31, 2023 | |
Discontinued Operations and Disposal Groups [Abstract] | |
DISCONTINUED OPERATIONS | NOTE 6: DISCONTINUED OPERATIONS The historical balance sheet and statements of operations of the Company and the related notes to the financial statements have been presented as discontinued operations in the financial statements and prior periods have been recast. Discontinued operations include the results of the Company’s historical cell therapy operations. The following table shows amounts included in assets and liabilities of discontinued operations, respectively, on the Company’s balance sheets as of December 31, 2023 and December 31, 2022: December 31, 2023 December 31, Current assets of discontinued operations Prepaid expenses — 1,527 Assets held for sale — — Other current assets — 29 Total current assets of discontinued operations — 1,556 Noncurrent assets of discontinued operations Property, equipment, and software—net — 8,375 Intangible assets—net — 617 Right-of-use assets—net — 1,010 Other assets — 2,344 Total noncurrent assets of discontinued operations — 12,346 Total assets of discontinued operations — 13,902 Current liabilities of discontinued operations Accounts payable 158 572 Accrued compensation — 1,155 Accrued research and development expenses 2,355 1,379 Lease liabilities — 359 Total current liabilities of discontinued operations 2,513 3,465 Noncurrent liabilities of discontinued operations Lease liabilities — 1,717 Total noncurrent liabilities of discontinued operations — 1,717 Total liabilities of discontinued operations 2,513 5,182 The following table summarizes the results of operations of the Company’s discontinued operations for the years ended December 31, 2023 and 2022: For the Years Ended December 31, 2023 2022 Classes of expenses constituting loss from discontinued operations Research and development expense ( 26,438 ) ( 37,817 ) General and administrative expense ( 57 ) ( 241 ) Impairment of long lived assets ( 641 ) ( 594 ) Loss on disposal of assets ( 102 ) ( 76 ) Loss from discontinued operations related to classes of expenses ( 27,238 ) ( 38,728 ) Gain from disposal of discontinued operations 8,446 — Income tax benefit from discontinued operations — — Loss from discontinued operations ( 18,792 ) ( 38,728 ) The following table presents the significant non-cash items and proceeds from sales of assets related to discontinued operations for the years ended December 31, 2023 and 2022 that are included in the accompanying statements of cash flows: For the Years Ended December 31, 2023 2022 Adjustments to reconcile net loss to net cash used in operating activities: Depreciation and amortization 1,631 2,582 Share-based compensation 713 2,563 Impairment charges 641 594 Loss on disposal of assets 102 76 Gain on disposal of business ( 8,446 ) — Cash flows provided by investing activities Proceeds from disposal of business 8,000 — Proceeds from sale of equipment 37 — |
Elo Transaction
Elo Transaction | 12 Months Ended |
Dec. 31, 2023 | |
Deconsolidation Of Subsidiary [Abstract] | |
Elo Transaction | NOTE 11: ELO TRANSACTION On December 17, 2021, the Company and its then wholly-owned subsidiary, Elo Life Systems, Inc., entered into an agreement with a syndicate of investors, pursuant to which the Company contributed substantially all of the assets of Elo Life Systems, Inc. to a newly formed entity (the “Elo Transaction”). In connection with the Elo Transaction, the Company granted the newly formed entity (“Elo”) an exclusive license to certain of the Company’s intellectual property for use in non-medical applications with respect to plants, farm animals and certain other organisms. As consideration for the assets contributed and license granted by the Company to Elo, the Company received Common Stock in Elo and a $ 10.0 million promissory note payable from Elo (the “Note Receivable”). Investment in Elo 37 % of Elo’s voting shares outstanding as of December 31, 2023 and 2022. The Company’s proportionate share of Elo’s net loss for the years ended December 31, 2023 and 2022 was $ 4.9 million and $ 6.3 million, respectively. As the Company's cumulative proportionate share of Elo’s net loss exceeded the carrying value of the investment in Elo, the carrying value of the Investment in Elo has been reduced to $ 0 . In accordance with ASC 323, the Company will continue to record its proportionate share of Elo’s net loss in the statements of operations along with a corresponding reduction in the carrying value of the Note Receivable. Note Receivable The Note Receivable matures on the earlier of (i) December 1, 2028 or (ii) a Deemed Liquidation Event (as defined in the Elo’s Amended and Restated Certificate of Incorporation). The Note Receivable accrues interest at 2.00 % per annum and is payable annually on December 17th. As of December 31, 2023 , the carrying value of the Note Receivable was $ 5.0 million including a $ 2.8 million decrease in the carrying value as a result of equity method investment losses. The remaining $ 5.0 million discount on the Note Receivable will be amortized to interest income over the life of the Note. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | NOTE 14: INCOME TAXES The Company recorded no federal or state income tax expense and due to the operating losses incurred for the years ended December 31, 2023 and December 31, 2022. Significant components of the Company’s deferred tax assets and deferred tax liabilities are as follows (in thousands): Years Ended December 31, 2023 2022 Noncurrent deferred tax assets: Net operating loss carryforwards $ 45,472 $ 36,457 Contribution carryforwards 34 48 Lease liability 2,116 1,120 Deferred revenue 20,337 30,022 Capitalized R&D costs 28,732 15,893 Other assets 14,962 14,279 Tax credits 30,757 24,721 Less: valuation allowance ( 139,133 ) ( 121,372 ) Total deferred tax assets, noncurrent 3,277 1,168 Noncurrent deferred tax liability: Investments and other — 476 Deferred gain - Imugene 1,303 — Right of use asset 1,974 692 Total deferred tax liabilities, noncurrent 3,277 1,168 Net deferred tax assets $ — $ — As of December 31, 2023 and December 31, 2022, the Company has provided a valuation allowance for the full amount of the net deferred tax assets as the realization of the net deferred tax assets is not determined to be more likely than not. The net increase in the valuation allowance for the year ended December 31, 2023 of $ 17.8 million is comprised of an increase in the valuation allowance recorded against the deferred tax assets, primarily related to tax credits and net operating loss (“NOL”) carryforwards for the year. The reasons for the difference between actual income tax benefit for the years ended December 31, 2023 and December 31, 2022 and the amount computed by applying the statutory federal income tax rate to losses before income tax benefit are as follows (in thousands): Year Ended December 31, 2023 Year Ended December 31, 2022 Amount % of Pre-Tax Amount % of Pre-Tax Income tax expense at statutory rate $ ( 12,877 ) 21.0 % $ ( 23,444 ) 21.0 % State income taxes, net of federal tax benefit ( 1,774 ) 2.9 % ( 250 ) 0.2 % Non-deductible expenses 85 0.0 % 33 0.0 % Stock compensation - nondeductible 681 ( 1.2 %) 599 ( 0.5 %) Stock compensation - forfeitures 3,176 ( 5.2 %) 2,233 ( 2.0 %) R&D and orphan drug credits ( 6,078 ) 9.9 % ( 3,790 ) 3.4 % Other 657 ( 1.1 %) 314 ( 0.3 %) Change in state tax rate ( 1,632 ) 2.7 % ( 3,004 ) 2.7 % Change in valuation allowance 17,762 ( 29.0 %) 27,309 ( 24.5 %) Income tax (benefit) expense $ — 0.0 % $ — 0.0 % As of December 31, 2023 , the Company had federal and state NOL carryforwards of approximately $ 195.0 million and $ 166.8 million respectively. As of December 31, 2022 , the Company had federal and state NOL carryforwards of approximately $ 159.5 million and $ 119.1 million, respectively. The federal NOL carryforward million carries forward indefinitely. The state NOL carryforwards begin to expire in 2027 . As of December 31, 2023 , the Company had federal and state R&D tax credits of $ 17.2 million and an amount less than $ 0.1 million, which begin to expire in 2029 and 2030 , respectively. As of December 31, 2022 , the Company had federal and state tax R&D credits of $ 13.2 million and an amount less than $ 0.1 million. As of December 31, 2023 and December 31, 2021 , the Company had federal Orphan Drug credits of $ 13.5 million and $ 11.6 million, respectively, which begin to expire in 2038 . As of December 31, 2023 and December 31, 2022 , the Company had federal contribution carryforwards of $ 0.2 million which began to expire in 2023 . The Company’s ability to utilize its NOL and R&D credit carryforwards may be substantially limited due to ownership changes that may have occurred or that could occur in the future, as required by Section 382 of the Internal Revenue Code of 1986, as amended (the Code), as well as similar state provisions. These ownership changes may limit the amount of NOL and R&D credit carryforwards that can be utilized annually to offset future taxable income and tax, respectively. In general, an “ownership change,” as defined by Section 382 of the Code, results from a transaction or series of transactions over a three-year period resulting in an ownership change of more than 50 percent of the outstanding stock of a company by certain stockholders or public groups. The Company has not completed a study to assess whether one or more ownership changes have occurred since the Company became a loss corporation under the definition of Section 382. If the Company has experienced an ownership change, utilization of the NOL or R&D credit carryforwards would be subject to an annual limitation, which is determined by first multiplying the value of the Company’s stock at the time of the ownership change by the applicable long-term, tax-exempt rate, and then could be subject to additional adjustments, as required. Any such limitation may result in the expiration of a portion of the NOL or R&D credit carryforwards before utilization. Until a study is completed and any limitation known, no amounts are being considered as an uncertain tax position or disclosed as an unrecognized tax benefit. Any carryforwards that expire prior to utilization as a result of such limitations will be removed from deferred tax assets with a corresponding reduction of the valuation allowance. Due to the existence of the valuation allowance, it is not expected that any possible limitation will have an impact on the results of operations of the Company. The Company reflects in the accompanying financial statements the benefit of positions taken in a previously filed tax return or expected to be taken in a future tax return only if it is considered ‘more-likely-than-not’ that the position taken will be sustained by the appropriate taxing authority. As of December 31, 2023 and December 31, 2022 , the Company had no unrecognized income tax benefits. The Company’s policy for recording interest and penalties relating to uncertain income tax positions is to record them as a component of income tax expense in the accompanying statements of operations. As of December 31, 2023 and December 31, 2022 , the Company had no such accruals. In November 2021, North Carolina enacted the 2021 Appropriations Act, which included a gradual corporate income tax rate decrease from the current 2.5 % to 0 % by 2030. Due to the uncertainty of projecting income through 2030, the Company calculated, before consideration of the valuation allowance, its North Carolina net operating losses using the current 2.5 % rate which is in effect through 2024. The Company will continue to monitor its future North Carolina taxable income and its ability to utilize its deferred tax asset for its net operating loss carryover. If the Company does not become profitable in North Carolina prior to 2025, or it becomes more certain that the Company will not be able to utilize its North Carolina net operating losses before the tax rate drops to 0 %, the Company will then remeasure its deferred tax asset at that time The TCJA of 2017 subjects a U.S. shareholder to tax on global intangible low-taxed income (“GILTI”) earned by certain foreign subsidiaries. The FASB Staff Q&A, Topic 740, No. 5, Accounting for Global Intangible Low-Taxed Income , states that an entity can make an accounting policy election to either recognized deferred taxes for temporary basis differences expected to reverse as GILTI in future years or to provide for the tax expense related to GILTI in the year the tax is incurred as a period expense only. The Company has elected to account for GILTI in the year the tax is incurred. The Company does not have a GILTI inclusion in years ends December 31, 2023 or December 31, 2022 and therefore, no GILTI tax has been recorded for the years then ended. |
Net Loss Per Share
Net Loss Per Share | 12 Months Ended |
Dec. 31, 2023 | |
Earnings Per Share [Abstract] | |
NET LOSS PER SHARE | NOTE 7: NET LOSS PER SHARE The Company’s potential dilutive securities have been excluded from the computation of diluted net loss per share as the effect of inclusion would be to reduce the net loss per share. Therefore, the weighted-average number of shares of common stock outstanding used to calculate both basic and diluted net loss per share attributable to common stockholders is the same. Years Ended December 31, 2023 2022 Loss from continuing operations (in thousands) $ ( 42,527 ) $ ( 72,909 ) Loss from discontinued operations (in thousands) $ ( 18,792 ) $ ( 38,728 ) Net loss (in thousands) $ ( 61,319 ) $ ( 111,637 ) Weighted-average common shares outstanding basic and diluted 3,841,405 2,929,873 Loss per share basic and diluted: Loss from continuing operations ( 11.07 ) ( 24.88 ) Loss from discontinued operations ( 4.89 ) ( 13.22 ) Net loss per share, basic and diluted ( 15.96 ) ( 38.10 ) The following weighted-average common stock equivalents were excluded from the calculation of diluted loss per share because their inclusion would have been anti-dilutive: Years Ended December 31, 2023 2022 Unvested restricted stock units 230,646 73,300 Stock Options 10,345 79,222 Unsettled ESPP contributions 8,065 2,044 Total common stock equivalents excluded from diluted net loss per share 249,056 154,566 |
Segment Reporting
Segment Reporting | 12 Months Ended |
Dec. 31, 2023 | |
Segment Reporting [Abstract] | |
SEGMENT REPORTING | NOTE 15: SEGMENT REPORTING The Company has determined that the Chief Executive Officer (“CEO”) is the Company’s chief operating decision maker (“CODM”) as the CEO makes decisions as it relates to allocation of resources and key market strategies. The CODM reviews financial information presented on a consolidated basis. Additionally, resource allocation and key market strategy decisions are made by the CODM based on consolidated results. As such, it was concluded that the Company operates as one segment. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2023 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | NOTE 16: SUBSEQUENT EVENTS TG License Agreement On January 7, 2024, the Company entered into the TG License Agreement with TG Therapeutics, pursuant to which the Company granted TG Subsidiary certain exclusive and non-exclusive license rights to develop, manufacture, and commercialize the Company’s allogeneic CAR T therapy azer-cel for autoimmune diseases and other indications outside of cancer (collectively referred to as licensed products). For a description of the TG License Agreement refer to Note 2, Collaboration and License Agreements. Caribou Biosciences In February 2024, The Company announced that it had granted Caribou Biosciences, Inc. (“Caribou”), a leading CRISPR genome-editing cell therapy company, a non-exclusive, worldwide license, with the right to sublicense, to one of its foundational cell therapy patent families for use with CRISPR-based therapies in the field of human therapeutics. Under the terms of the agreement, the Company received an upfront payment and, upon commercialization by Caribou, will receive royalties on net sales of licensed products. In addition, for each occurrence of certain strategic transactions involving Caribou, the Company is eligible to receive a specific tiered milestone payment. Reverse Stock Split On February 13, 2024, the Company effected the Reverse Stock Split, pursuant to which every 30 shares of the Company’s common stock issued or outstanding were automatically reclassified into one new share of common stock, subject to the treatment of fractional shares as previously described, without any action on the part of the holders. For a description of the Reverse Stock Split, refer to Note 1, Description of Business and Summary of Significant Accounting Policies—Reverse Stock Split . Common Stock Offering In March 2024, the Company entered into an underwriting agreement relating to the issuance and sale of an aggregate of 2,500,000 shares of its common stock and warrants to purchase 2,500,000 shares of its common stock at a combined offering price of $ 16.00 per share. Each warrant has an exercise price per share of $ 20.00 , is immediately exercisable and will expire on March 5, 2029 . The offering was made pursuant to a registration statement on Form S-3. Gross proceeds from the transaction were $ 40.0 million before deducting underwriting discounts and commissions and offering expenses of approximately $ 2.9 million. In addition, the Company granted the underwriters a 30 -day option to purchase up to an additional 375,000 shares of its common stock at $ 16.00 per share, less underwriting discounts and commissions. |
Description of Business and S_2
Description of Business and Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Description of Business | Description of Business Precision BioSciences, Inc. (the “Company”) was incorporated on January 26, 2006 under the laws of the State of Delaware and is based in Durham, North Carolina. The Company is a gene editing company dedicated to improving life by developing in vivo therapies for genetic and infectious diseases with the application of the Company’s wholly-owned proprietary ARCUS genome editing platform. Since its inception, the Company has devoted substantially all of its efforts to research and development activities, recruiting skilled personnel, establishing its intellectual property portfolio and providing general and administrative support for these operations. The Company is subject to a number of risks similar to those of other companies conducting early-stage research and development of product candidates. Principal among these risks are dependence on key individuals and intellectual property, competition from other products and companies, and the technical risks associated with the successful research, development and clinical manufacturing of its product candidates. The Company’s success is dependent upon its ability to continue to raise additional capital in order to fund ongoing research and development, obtain regulatory approval of its products, successfully commercialize its products, generate revenue, meet its obligations, and, ultimately, attain profitable operations. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect the amounts reported in the financial statements and disclosures made in the accompanying notes to the financial statements. Actual results could differ from those estimates. Significant estimates include recording revenue for performance obligations recognized over time, determination of the fair value of share-based compensation grants, estimating services expended by third-party service providers used to recognize research and development expense and determination of the fair value of investments. |
Basis of Presentation | Basis of Presentation These financial statements have been prepared in accordance with GAAP. Additionally, the accompanying financial statements have been prepared on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. The accompanying financial statements have been recast for all periods presented to reflect the assets, liabilities and expenses related to discontinued operations (discussed below). The accompanying financial statements are generally presented in conformity with the Company's historical format. |
Reverse Stock Split | Reverse Stock Split On February 13, 2024, the Company amended its amended and restated certificate of incorporation in order to effect a 1-for- 30 reverse stock split of its outstanding shares of capital stock (the “Reverse Stock Split”). As a result of the Reverse Stock Split, every 30 shares of the Company’s common stock issued or outstanding were automatically reclassified into one new share of common stock, subject to the treatment of fractional shares as described below, without any action on the part of the holders. All historical share and per-share amounts reflected throughout the accompanying consolidated financial statements and other financial information in this Annual Report on Form 10-K have been retroactively adjusted to reflect the 2024 Reverse Stock Split as if the split occurred as of the earliest period presented. The Reverse Stock Split did not affect the number of authorized shares of common stock or the par value of the common stock. No fractional shares were issued in connection with the Reverse Stock Split. Stockholders who would otherwise have been entitled to receive fractional shares as a result of the Reverse Stock Split were entitled to a cash payment in lieu thereof at a price equal to the fraction to which the stockholder would otherwise be entitled multiplied by the closing sales price per share of the common stock (as adjusted to give effect to the Reverse Stock Split) on The Nasdaq Capital Market on February 13, 2024, the last trading day immediately preceding the effective time of the Reverse Stock Split. |
Cash and Cash Equivalents | Cash and Cash Equivalents As of December 31, 2023, the Company held cash equivalents which are composed of money market funds. As of December 31, 2022, the Company held cash equivalents which were composed of money market funds and repurchase agreements that were purchased through repurchase intermediary banks and collateralized by deposits in the form of government securities and obligations. |
Concentrations of Credit Risk | Concentrations of Credit Risk Financial instruments that potentially subject the Company to concentrations of credit risk consist principally of cash, cash equivalents, and notes receivable. All of the Company’s cash and cash equivalents are held at financial institutions that management believes to be of high credit quality. The Company may maintain cash deposits in financial institutions in excess of government insured limits. The Company regularly invests excess cash deposits in money market funds and repurchase agreements. The Company believes that the credit risk arising from the holdings of these financial instruments is mitigated by the fact that these securities are of short duration, government backed and of high credit rating. The Company has not experienced any losses on cash and cash equivalents to date. Revenue from Prevail and Novartis accounted for 53 % and 47 % of revenue during the year ended December 31, 2023 , respectively. Revenue from Prevail and Novartis accounted for 62 % and 38 % of revenue during the year ended December 31, 2022, respectively. Prevail and Novartis accounted for 62 % and 38 % of deferred revenue as of December 31, 2023, respectively. In addition, the Company currently holds a $ 10.0 million promissory note payable from Elo (defined below) and a $ 13.0 million convertible note from Imugene US (defined below), which exposes the Company to potential losses in the event of default. Counterparty credit risk is monitored through periodic reviews of financial records. As of December 31, 2023, the Company considers the risk of counterparty default to be minimal. |
Property, Equipment and Software | Property, Equipment and Software Property, equipment and software (“PP&E”) are stated at cost, net of depreciation and amortization. Depreciation and amortization are calculated using the straight-line method over the estimated useful lives of the assets ranging from three to seven years. Leasehold improvements are amortized on a straight-line basis over the shorter of the lease term or estimated useful life of the asset. The depreciation and amortization periods for the Company’s significant PP&E categories are as follows: Laboratory equipment 5 to 7 years Furniture and fixtures and office equipment 3 to 5 years Leasehold improvements Lesser of remaining lease term or useful life Repairs and maintenance are charged to operations as incurred, and expenditures for additions and improvements that extend the useful life of the asset are capitalized. |
Intangible Assets | Intangible Assets Intangible assets primarily include in-licenses and capitalized patent costs. The Company capitalizes license fees paid to acquire access to proprietary technology if the technology is expected to have alternative future use in multiple research and development projects. The cost of licensed technology rights is amortized using the straight-line method over the estimated useful life of the technology. If the access to use the technology rights is one year or less, the cost is recorded as a prepaid expense and amortized over the period identified in the agreement. Amortization expense for licensed technology and capitalized patent costs is included in research and development expenses within the accompanying statement of operations. |
Impairment of Long-Lived Assets | Impairment Charges Long-lived assets, such as PP&E, intangible assets, and long-term prepaid assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. An impairment loss is assessed when future undiscounted cash flows are less than the assets’ carrying value and recognized when the carrying value of the asset exceeds fair value. Fair value is calculated by estimating the discounted future cash flows expected to be generated by the asset as well as other valuation techniques. An impairment charge is recognized for the amount by which the carrying amount exceeds the fair value of the asset. |
Fair Value Measurements | Fair Value Measurements Fair value is defined 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. When determining the fair value measurements for assets and liabilities, which are required to be recorded at fair value, we consider the principal or most advantageous market in which we would transact and the market-based risk measurements or assumptions that market participants would use in pricing the asset or liability, such as risks inherent in valuation techniques, transfer restrictions and credit risk. ASC 820, Fair Value Measurement , establishes a fair value hierarchy for instruments measured at fair value that distinguishes between assumptions based on market data (observable inputs) and the Company’s assumptions (unobservable inputs). Observable inputs are inputs that market participants would use in pricing the asset or liability based on market data obtained from our independent sources. Unobservable inputs are inputs that reflect the Company’s assumptions about the inputs that market participants would use in pricing the asset or liability, and are developed based on the best information available in the circumstances. The following fair value hierarchy is used to classify assets and liabilities based on the observable inputs and unobservable inputs used to value the assets and liabilities: • Level 1 - Observable inputs based on unadjusted quoted prices in active markets for identical assets or liabilities • Level 2 - Inputs, other than quoted prices in active markets, that are observable either directly or indirectly • Level 3 - Unobservable inputs for which there is little or no market date, which require the Company to develop its own assumptions To the extent that the valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires more judgment. A financial instrument’s level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. |
Investments in Equity Securities / Equity Method | Investments in Equity Securities The Company carries investments in equity securities for which it does not possess the ability to exercise significant influence or control at fair value in the balance sheets and records changes in fair value in the statements of operations as a component of other income or expense. As of December 31, 2023 and December 31, 2022 the Company held common stock in iECURE (defined below) with a fair value of $ 3.2 million and $ 2.6 million, respectively. Investments under the Equity Method The Company utilizes the equity method to account for investments when it is determined that the Company possess the ability to exercise significant influence, but not control, over the operating and financial policies of the investee. The ability to exercise significant influence is presumed when the investor possesses more than 20 % of the voting interests of the investee. This presumption may be overcome based on specific facts and circumstances that demonstrate that the ability to exercise significant influence is restricted. In applying the equity method, the Company subsequently increases or decreases the carrying amount of the investment by the Company’s proportionate share of the net earnings or losses and other comprehensive income of the investee. In the event that net losses of the investee reduce the carrying amount to zero , additional net losses are recorded if other investments in the investee are at-risk, even if the Company has not committed to provide financial support to the investee. |
Leases | Leases At the inception of an arrangement, the Company determines whether the arrangement is or contains a lease based on the unique facts and circumstances present. Leases with a term greater than one year are recognized on the balance sheet as right-of-use assets and lease liabilities. The Company has elected not to recognize on the balance sheet leases with terms of one year or less. Lease liabilities and corresponding right-of-use assets are recorded based on the present value of lease payments over the expected remaining lease term. As the rate implicit in the Company's leases are not readily determinable, the Company utilizes its incremental borrowing rates, which are the rates incurred to borrow on a collateralized basis over a similar term an amount equal to the lease payments in a similar economic environment. |
Revenue Recognition for Contracts with Customers | Revenue Recognition for Contracts with Customers The Company’s revenues are generated primarily through collaborative research, license, development and commercialization agreements. ASC 606 applies to all contracts with customers, except for contracts that are within the scope of other standards. Under ASC 606, an entity recognizes revenue when its customer obtains control of promised goods or services, in an amount that reflects the consideration which the entity expects to receive in exchange for those goods or services. To determine revenue recognition for arrangements that an entity determines are within the scope of ASC 606, the entity performs the following five steps: (i) identify the contract(s) with a customer; (ii) identify the performance obligations in the contract; (iii) determine the transaction price; (iv) allocate the transaction price to the performance obligations in the contract; and (v) recognize revenue when (or as) the entity satisfies a performance obligation. At contract inception, once the contract is determined to be within the scope of ASC 606, the Company evaluates the performance obligations promised in the contract that are based on goods and services that will be transferred to the customer and determines whether those obligations are both (i) capable of being distinct and (ii) distinct in the context of the contract. Goods or services that meet these criteria are considered distinct performance obligations. If both these criteria are not met, the goods and services are combined into a single performance obligation. The Company then recognizes as revenue the amount of the transaction price that is allocated to the respective performance obligation when (or as) the performance obligation is satisfied. Arrangements that include rights to additional goods or services that are exercisable at a customer’s discretion are generally considered options. The Company assesses if these options provide a material right to the customer and if so, these options are considered performance obligations. The exercise of a material right is accounted for as a contract modification for accounting purposes. The Company recognizes as revenue the amount of the transaction price that is allocated to the respective performance obligation when (or as) each performance obligation is satisfied at a point in time or over time, and if over time this is based on the use of an output or input method. For the year ended December 31, 2023 , the Company recorded cumulative catch up adjustments on its contracts with partners that increased revenue recognition by $ 1.6 million; the cumulative catch-up adjustments resulted from a change in total estimated effort required to satisfy performance obligations and changes in variable consideration included in the transaction price related to estimated fees to be received from partners. During the year ended December 31, 2023 , the Company recorded $ 48.7 million in revenue that was included in deferred revenue as of December 31, 2022. Invoices issued as stipulated in contracts prior to revenue recognition are recorded as deferred revenue. Amounts expected to be recognized as revenue within the 12 months following the balance sheet date are classified as deferred revenue within current liabilities in the accompanying balance sheets. Amounts not expected to be recognized as revenue within the 12 months following the balance sheet date are classified as noncurrent deferred revenue. Amounts recognized as revenue, but not yet invoiced are generally recognized as contract assets in the other current assets line item in the accompanying balance sheets. Milestone Payments – If an arrangement includes development and regulatory milestone payments, the Company evaluates whether the milestones are considered probable of being reached and estimates the amount to be included in the transaction price using the most likely amount method. If it is probable that a significant revenue reversal would not occur, the associated milestone value is included in the transaction price. Milestone payments that are not within the Company’s or the licensee’s control, such as regulatory approvals, are not considered probable of being achieved until those approvals are received and therefore revenue recognized is constrained as management is unable to assert that a reversal of revenue would not be probable. The transaction price is then allocated to each performance obligation on a relative standalone selling price basis, for which the Company recognizes revenue as or when the performance obligations under the contract are satisfied. At the end of each subsequent reporting period, the Company re-evaluates the probability of achievement of such development milestones and any related constraint, and, if necessary, adjusts its estimate of the overall transaction price. Any such adjustments are recorded on a cumulative catch-up basis, which would affect collaboration revenues and earnings in the period of adjustment. Royalties – For arrangements that include sales-based royalties, including milestone payments based on a level of sales, which are the result of a customer-vendor relationship and for which the license is deemed to be the predominant item to which the royalties relate, the Company recognizes revenue at the later of (i) when the related sales occur, or (ii) when the performance obligation linked to some or all of the royalty has been satisfied or partially satisfied. To date, the Company has not recognized any royalty revenue resulting from any of its licensing arrangements. Significant Financing Component – In determining the transaction price, the Company adjusts consideration for the effects of the time value of money if the timing of payments provides the Company with a significant benefit of financing. The Company does not assess whether a contract has a significant financing component if the expectation at contract inception is such that the period between payment by the licensees and the transfer of the promised goods or services to the licensees will be one year or less. The Company assessed each of its revenue arrangements in order to determine whether a significant financing component exists and concluded that a significant financing component does not exist in any of its arrangements. Collaborative Arrangements – The Company has entered into collaboration agreements, which are within the scope of ASC 606, to discover, develop, manufacture and commercialize product candidates. The terms of these agreements typically contain multiple promises or obligations, which may include: (1) licenses, or options to obtain licenses, to use the Company’s technology, (2) research and development activities to be performed on behalf of the collaboration partner, and (3) in certain cases, services in connection with the manufacturing of preclinical and clinical material. Payments the Company receives under these arrangements typically include one or more of the following: non-refundable, upfront license fees; option exercise fees; funding of research and/or development efforts; clinical and development, regulatory, and sales milestone payments; and royalties on future product sales. The Company analyzes its collaboration arrangements to assess whether the collaboration agreements are within the scope of ASC 808, Collaborative Arrangements (“ASC 808”) to determine whether such arrangements involve joint operating activities performed by parties that are both active participants in the activities and exposed to significant risks and rewards dependent on the commercial success of such activities. This assessment is performed throughout the life of the arrangement based on changes in the responsibilities of all parties in the arrangement. For collaboration arrangements within the scope of ASC 808 that contain multiple elements, the Company first determines which elements of the collaboration are deemed to be within the scope of ASC 808 and those that are more reflective of a vendor-customer relationship and, therefore, are within the scope of ASC 606. For elements of collaboration arrangements that are accounted for pursuant to ASC 808, an appropriate recognition method is determined and applied consistently, generally by analogy to ASC 606. For those elements of the arrangement that are accounted for pursuant to ASC 606, the Company applies the five-step model described above. For additional discussion of accounting for collaboration revenues, see Note 10, Collaboration and License Agreements . |
Research and Development | Research and Development Research and development costs are expensed as incurred. Research and development expenses are comprised of costs incurred in performing research and development activities including salaries, benefits, share-based compensation, allocations for rent and facility costs, depreciation, preclinical manufacturing expenses, costs of services provided by contract research organizations (“CROs”) in connection with clinical trials and contract manufacturing organizations (“CMOs”) engaged to manufacture clinical trial material, costs of licensing technology, and costs of services provided by research and development service providers. Upfront payments and milestone payments made for the licensing of technology are expensed as research and development in the period in which they are incurred if the technology is not expected to have any alternative future uses other than the specific research and development project for which it was intended. Nonrefundable advance payments for goods or services to be received in the future for use in research and development activities are recorded as prepaid expenses. The prepaid amounts are expensed as the related goods are delivered or the services are performed rather than when the payment is made. The Company is required to estimate accrued research and development expenses resulting from its obligations under contracts with CROs, CMOs, research organizations, service providers, vendors and consultants in connection with research and development activities. The financial terms of these contracts are subject to negotiations and vary from contract to contract and may result in payment flows that do not match the periods over which materials or services are provided to the Company under such contracts. The Company’s objective is to reflect the appropriate research and development expenses in its statements of operations by matching those expenses with the period in which the services and efforts are expended. There may be instances in which payments made to the Company’s vendors will exceed the level of services provided and result in a prepayment of the expense. In accruing fees, the Company estimates the time period over which services will be performed and the level of effort to be expended in each period. If the actual timing of the performance of services or the level of effort varies from the Company’s estimate, the Company adjusts the accrual or amount of prepaid expense accordingly. Discontinued Operations The Company determined that its decision to no longer internally develop ex vivo allogeneic chimeric antigen receptor (“CAR T”) immunotherapies and related sale of our CAR T infrastructure to Imugene (defined below) met the criteria for classification as a discontinued operation in accordance with ASC Subtopic 205-20, Discontinued Operations . Accordingly, the accompanying financial statements for all periods have been updated to present the assets and liabilities associated with the development of ex vivo allogeneic CAR T immunotherapies separately as discontinued operations on the balance sheets and the results of all discontinued operations are reported as a separate component in the statements of operations. For additional information related to discontinued operations, refer to Note 6, Discontinued Operations. |
Discontinued Operations | Discontinued Operations The Company determined that its decision to no longer internally develop ex vivo allogeneic chimeric antigen receptor (“CAR T”) immunotherapies and related sale of our CAR T infrastructure to Imugene (defined below) met the criteria for classification as a discontinued operation in accordance with ASC Subtopic 205-20, Discontinued Operations . Accordingly, the accompanying financial statements for all periods have been updated to present the assets and liabilities associated with the development of ex vivo allogeneic CAR T immunotherapies separately as discontinued operations on the balance sheets and the results of all discontinued operations are reported as a separate component in the statements of operations. For additional information related to discontinued operations, refer to Note 6, Discontinued Operations. |
Comprehensive Loss | Comprehensive Loss Comprehensive loss includes net loss as well as other changes in stockholders’ equity that result from transactions and economic events other than those with stockholders. For the years ended December 31, 2023 and December 31, 2022 , there was no difference between net loss and comprehensive loss in the accompanying statements of operations. |
Net Loss Per Share | Net Loss Per Share Basic net loss per share is computed by dividing net loss attributable to common stockholders by the weighted-average number of shares of common stock outstanding during the period. Diluted net loss per share is computed using the weighted-average number of shares of common stock outstanding during the period and, if dilutive, the weighted-average number of potential shares of common stock. The Company’s diluted net loss per share is the same as basic net loss per share for the years ended December 31, 2023 and December 31, 2022 , given all potential shares of common stock are anti-dilutive as a result of the net loss. |
Share-Based Compensation | Share-Based Compensation The Company accounts for all share-based compensation awards, including stock options, restricted stock units and its employee stock purchase plan, at fair value. Compensation expense is recognized for the Company’s share-based compensation awards, net of actual forfeitures, over the requisite service period, which is the vesting period of the respective award. The fair value of each stock option grant is estimated on the date of grant using the Black-Scholes option-pricing model, which uses as inputs the fair value of the Company’s common stock and assumptions the Company makes for the expected volatility of its common stock, the expected term of the stock options, the risk-free interest rate for a period that approximates the expected term of the stock options and the Company’s expected dividend yield. Expected volatility is estimated based on the historical volatility of the Company and other comparable publicly traded peer companies. The expected term of the options has been determined utilizing a weighted average value considering actual exercise history and estimated expected term based on the midpoint of final vest date and expiration date. The risk-free interest rate is determined by reference to the U.S. Treasury yield curve in effect at the time of grant of the award for time periods approximately equal to the expected term of the award. Expected dividend yield is based on the fact that the Company has never paid cash dividends and does not expect to pay any cash dividends in the foreseeable future. The fair value of each restricted stock unit is determined based on the closing market price of the Company’s common stock on the date of grant. |
Income Taxes | Income Taxes Deferred tax assets and liabilities are determined based on the temporary differences between the financial statement carrying amounts and the tax basis of assets and liabilities using the enacted tax rates in effect in the years in which the differences are expected to reverse. In estimating future tax consequences, all expected future events are considered other than the enactment of changes in the tax law or rates. Changes in deferred tax assets and liabilities are recorded in the provision for income taxes. The Company may recognize the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities based on the technical merits of the position. The tax benefits recognized in the financial statements from such a position is measured based on the largest benefit that has a greater than 50% likelihood of being realized upon ultimate settlement. The Company assesses the likelihood that its deferred tax assets will be recovered from future taxable income and, to the extent it believes, based upon the weight of available evidence, that it is more likely than not that all or a portion of the deferred tax assets will not be realized, a valuation allowance is established through a charge to income tax expense. Potential for recovery of deferred tax assets is evaluated by estimating the future taxable profits expected and considering prudent and feasible tax planning strategies. |
Accounting Standards Updates | Accounting Standards Updates Accounting standards updates issued, but not effective until after December 31, 2023 , are not expected to have a material effect on the Company’s financial position, statements of operations or cash flows. |
Description of Business and S_3
Description of Business and Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Depreciation and Amortization Periods for Property, Equipment and Software | The depreciation and amortization periods for the Company’s significant PP&E categories are as follows: Laboratory equipment 5 to 7 years Furniture and fixtures and office equipment 3 to 5 years Leasehold improvements Lesser of remaining lease term or useful life |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Schedule of Stock-Based Compensation Expense | The Company recorded employee and nonemployee share-based compensation expense as follows (in thousands): Years Ended December 31, 2023 2022 Employee $ 12,364 $ 15,921 Nonemployee 1,676 3,276 $ 14,040 $ 19,197 |
Schedule of Stock-Based Compensation Expense | Share-based compensation expense is included in the following line items in the statements of operations (in thousands): Years Ended December 31, 2023 2022 Research and development $ 4,355 $ 7,973 General and administrative 9,685 11,224 $ 14,040 $ 19,197 |
Schedule of Stock Options Valuation Assumptions Using a Black-Scholes Option Pricing Model | The fair value of each stock option grant is estimated using a Black-Scholes option-pricing model on the date of grant as follows: Years Ended December 31, 2023 2022 Estimated dividend yield 0.00 % 0.00 % Weighted-average expected stock price volatility 87.15 % 79.66 % Weighted-average risk-free interest rate 3.89 % 2.57 % Expected term of options (in years) 5.78 6.07 Weighted-average fair value per option $ 17.41 $ 55.91 |
Summary of Activity of Option Plans | The following table summarizes activity in the Company’s stock option plans for the years ended December 31, 2022 and December 31, 2023 : Outstanding Weighted- Balance as of December 31, 2021 330,386 278.33 Granted 223,670 80.71 Exercised ( 11,186 ) 35.13 Forfeited/canceled ( 85,773 ) 259.72 Balance as of December 31, 2022 457,097 191.07 Granted 20,443 23.61 Exercised ( 3,196 ) 9.59 Forfeited/canceled ( 124,682 ) 221.38 Balance as of December 31, 2023 349,662 172.13 |
Summary of Restricted Stock Unit Activity | The following table summarizes the Company’s RSU activity for the years ended December 31, 2022 and December 31, 2023: RSU Awards Weighted-Average Grant Date Fair Value Unvested RSUs as of December 31, 2021 25,668 338.76 Granted 110,842 78.73 Forfeited ( 6,404 ) 214.04 Vested ( 9,556 ) 336.29 Unvested RSUs as of December 31, 2022 120,550 106.49 Granted 161,161 34.49 Forfeited ( 19,961 ) 109.19 Vested ( 46,893 ) 112.02 Unvested RSUs As of December 31, 2023 214,857 51.03 |
Summary of Stock Options Granted under the Stock Option Plans are Vested or Expected to Vest | The following table summarizes certain information about stock options granted under the stock option plans which are vested or expected to vest as of December 31, 2023 and December 31, 2022. Years Ended December 31, Number of Options Weighted- Weighted- 2023 Expected to be exercisable 349,662 7.15 $ 172.13 2023 Currently exercisable 223,019 6.58 $ 199.00 2022 Expected to be exercisable 457,097 6.59 $ 191.07 2022 Currently exercisable 176,113 4.56 $ 275.62 |
Summary of Stock Options Outstanding under the Stock Option Plans | The following table summarizes certain information about stock options outstanding under the stock option plans for the years ended December 31, 2023 and December 31, 2022, respectively: Year Ended December 31, 2023 Exercise price Number of Options Outstanding Weighted- Average Number of Options Exercisable $ 12.30 - $ 46.50 67,401 7.65 27,084 $ 50.40 - $ 100.20 77,327 8.34 49,906 $ 122.40 - $ 174.90 64,477 7.35 35,163 $ 189.30 - $ 293.70 65,372 7.10 46,526 $ 305.10 - $ 480.00 75,085 5.33 64,340 349,662 223,019 Year Ended December 31, 2022 Exercise price Number of Options Outstanding Weighted- Average Number of Options Exercisable $ 0.60 - $ 46.50 67,565 7.03 20,547 $ 50.40 - $ 100.20 81,367 9.14 194 $ 122.40 - $ 136.80 73,906 7.13 47 $ 170.10 - $ 293.70 117,590 5.85 69,761 $ 305.10 - $ 480.00 116,669 4.96 85,564 457,097 176,113 |
Net Loss Per Share (Tables)
Net Loss Per Share (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | The Company’s potential dilutive securities have been excluded from the computation of diluted net loss per share as the effect of inclusion would be to reduce the net loss per share. Therefore, the weighted-average number of shares of common stock outstanding used to calculate both basic and diluted net loss per share attributable to common stockholders is the same. Years Ended December 31, 2023 2022 Loss from continuing operations (in thousands) $ ( 42,527 ) $ ( 72,909 ) Loss from discontinued operations (in thousands) $ ( 18,792 ) $ ( 38,728 ) Net loss (in thousands) $ ( 61,319 ) $ ( 111,637 ) Weighted-average common shares outstanding basic and diluted 3,841,405 2,929,873 Loss per share basic and diluted: Loss from continuing operations ( 11.07 ) ( 24.88 ) Loss from discontinued operations ( 4.89 ) ( 13.22 ) Net loss per share, basic and diluted ( 15.96 ) ( 38.10 ) |
Schedule of Common Share Equivalent Securities Excluded from Calculation of Diluted loss per share | The following weighted-average common stock equivalents were excluded from the calculation of diluted loss per share because their inclusion would have been anti-dilutive: Years Ended December 31, 2023 2022 Unvested restricted stock units 230,646 73,300 Stock Options 10,345 79,222 Unsettled ESPP contributions 8,065 2,044 Total common stock equivalents excluded from diluted net loss per share 249,056 154,566 |
Property, Equipment and Softw_2
Property, Equipment and Software and Assets Held for Sale (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Property, Plant and Equipment [Abstract] | |
Schedule of PP&E | PP&E consisted of the following as of December 31 (in thousands): 2023 2022 Construction in progress $ 70 $ 520 Leasehold improvements 11,945 11,946 Software 432 442 Laboratory equipment 15,856 17,271 Office equipment 1,399 1,408 Furniture and fixtures 2,124 2,097 Total property, equipment and software 31,826 33,684 Less accumulated depreciation and amortization 25,488 21,869 Property, equipment and software - net $ 6,338 $ 11,815 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Intangible Assets, Net | Intangible assets, net, consisted of the following as of December 31 (in thousands): 2023 2022 License cost $ 548 $ 910 Less: accumulated amortization ( 148 ) ( 179 ) Intangible assets, net $ 400 $ 731 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Abstract] | |
Schedule of Assets Measured at Fair Value on Recurring Basis | The following represents assets measured at fair value on a recurring basis by the Company (in thousands): December 31, 2023 Fair Value Level 1 Level 2 Level 3 Assets: Money market funds $ 13,960 $ 13,960 $ — $ — Investment in iECURE 3,206 — — 3,206 Imugene convertible note 11,897 — 11,897 — Assets held for sale 487 — — 487 $ 29,550 $ 13,960 $ 11,897 $ 3,693 Liabilities: Final payment fee $ 215 $ — $ 215 $ — $ 215 $ — $ 215 $ — December 31, 2022 Fair Value Level 1 Level 2 Level 3 Assets: Money market funds $ 868 $ 868 $ — $ — Repurchase agreements 40,000 — 40,000 — Investment in iECURE 2,576 — — 2,576 $ 43,444 $ 868 $ 40,000 $ 2,576 Liabilities: Final payment fee $ 199 $ — $ 199 $ — $ 199 $ — $ 199 $ — |
Summary of Financial Assets Measured at Fair Value on Recurring Basis Using Significant Unobservable Inputs | The following represents a reconciliation of assets measured and carried at fair value on a recurring basis with the use of significant unobservable inputs (Level 3) for the year ended December 31, 2023 (in thousands): Investment in iECURE Balance December 31, 2022 $ 2,576 Additions — Gains from changes in fair value included in earnings 630 Balance December 31, 2023 $ 3,206 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Components of Lease Expense | The elements of lease expense were as follows: For the Years Ended December 31, (in thousands) 2023 2022 Lease Cost Operating lease cost $ 2,043 $ 1,644 Short-term lease cost 742 563 Variable lease cost 692 746 Sublease income ( 137 ) — Total Lease Cost $ 3,340 $ 2,953 Other Information Operating cash flows used for operating leases 2,026 2,264 Operating right-of-use assets obtained in exchange for lease obligations 9,955 — Operating lease liabilities arising from obtaining right-of-use assets 9,328 — Operating Leases Weighted average remaining lease term (in years) 5.6 2.9 Operating Leases Weighted average discount rate 9.2 % 7.7 % |
Schedule of Future Lease Payments under Non-Cancelable Leases | Future lease payments under non-cancelable operating leases with terms of greater than one year as of December 31, 2023, were as follows: (in thousands) December 31, 2023 2024 $ 1,888 2025 1,962 2026 2,019 2027 2,078 2028 2,140 2029 and beyond 1,269 Total lease payments 11,356 Less: imputed interest 2,500 Total operating lease liabilities $ 8,856 |
Discontinued Operations (Tables
Discontinued Operations (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Consolidated Financial Statements Presented as Discontinued Operations | The following table shows amounts included in assets and liabilities of discontinued operations, respectively, on the Company’s balance sheets as of December 31, 2023 and December 31, 2022: December 31, 2023 December 31, Current assets of discontinued operations Prepaid expenses — 1,527 Assets held for sale — — Other current assets — 29 Total current assets of discontinued operations — 1,556 Noncurrent assets of discontinued operations Property, equipment, and software—net — 8,375 Intangible assets—net — 617 Right-of-use assets—net — 1,010 Other assets — 2,344 Total noncurrent assets of discontinued operations — 12,346 Total assets of discontinued operations — 13,902 Current liabilities of discontinued operations Accounts payable 158 572 Accrued compensation — 1,155 Accrued research and development expenses 2,355 1,379 Lease liabilities — 359 Total current liabilities of discontinued operations 2,513 3,465 Noncurrent liabilities of discontinued operations Lease liabilities — 1,717 Total noncurrent liabilities of discontinued operations — 1,717 Total liabilities of discontinued operations 2,513 5,182 The following table summarizes the results of operations of the Company’s discontinued operations for the years ended December 31, 2023 and 2022: For the Years Ended December 31, 2023 2022 Classes of expenses constituting loss from discontinued operations Research and development expense ( 26,438 ) ( 37,817 ) General and administrative expense ( 57 ) ( 241 ) Impairment of long lived assets ( 641 ) ( 594 ) Loss on disposal of assets ( 102 ) ( 76 ) Loss from discontinued operations related to classes of expenses ( 27,238 ) ( 38,728 ) Gain from disposal of discontinued operations 8,446 — Income tax benefit from discontinued operations — — Loss from discontinued operations ( 18,792 ) ( 38,728 ) The following table presents the significant non-cash items and proceeds from sales of assets related to discontinued operations for the years ended December 31, 2023 and 2022 that are included in the accompanying statements of cash flows: For the Years Ended December 31, 2023 2022 Adjustments to reconcile net loss to net cash used in operating activities: Depreciation and amortization 1,631 2,582 Share-based compensation 713 2,563 Impairment charges 641 594 Loss on disposal of assets 102 76 Gain on disposal of business ( 8,446 ) — Cash flows provided by investing activities Proceeds from disposal of business 8,000 — Proceeds from sale of equipment 37 — |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Schedule of Deferred Tax Assets and Liabilities | Significant components of the Company’s deferred tax assets and deferred tax liabilities are as follows (in thousands): Years Ended December 31, 2023 2022 Noncurrent deferred tax assets: Net operating loss carryforwards $ 45,472 $ 36,457 Contribution carryforwards 34 48 Lease liability 2,116 1,120 Deferred revenue 20,337 30,022 Capitalized R&D costs 28,732 15,893 Other assets 14,962 14,279 Tax credits 30,757 24,721 Less: valuation allowance ( 139,133 ) ( 121,372 ) Total deferred tax assets, noncurrent 3,277 1,168 Noncurrent deferred tax liability: Investments and other — 476 Deferred gain - Imugene 1,303 — Right of use asset 1,974 692 Total deferred tax liabilities, noncurrent 3,277 1,168 Net deferred tax assets $ — $ — |
Reconciliation of Federal Statutory Income Tax Rate and Income Tax Benefit | The reasons for the difference between actual income tax benefit for the years ended December 31, 2023 and December 31, 2022 and the amount computed by applying the statutory federal income tax rate to losses before income tax benefit are as follows (in thousands): Year Ended December 31, 2023 Year Ended December 31, 2022 Amount % of Pre-Tax Amount % of Pre-Tax Income tax expense at statutory rate $ ( 12,877 ) 21.0 % $ ( 23,444 ) 21.0 % State income taxes, net of federal tax benefit ( 1,774 ) 2.9 % ( 250 ) 0.2 % Non-deductible expenses 85 0.0 % 33 0.0 % Stock compensation - nondeductible 681 ( 1.2 %) 599 ( 0.5 %) Stock compensation - forfeitures 3,176 ( 5.2 %) 2,233 ( 2.0 %) R&D and orphan drug credits ( 6,078 ) 9.9 % ( 3,790 ) 3.4 % Other 657 ( 1.1 %) 314 ( 0.3 %) Change in state tax rate ( 1,632 ) 2.7 % ( 3,004 ) 2.7 % Change in valuation allowance 17,762 ( 29.0 %) 27,309 ( 24.5 %) Income tax (benefit) expense $ — 0.0 % $ — 0.0 % |
Description of Business and S_4
Description of Business and Summary of Significant Accounting Policies - Additional Information (Details) | 12 Months Ended | |||
Feb. 13, 2024 | Dec. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) | Aug. 15, 2023 USD ($) | |
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | ||||
Date of incorporation | Jan. 26, 2006 | |||
Net income loss | $ 61,319,000 | $ 111,637,000 | ||
Retained earnings accumulated deficit | 489,631,000 | 428,312,000 | ||
Investments under equity method carrying amount | $ 0 | |||
Revenue recorded included in deferred revenue | $ 48,700,000 | |||
Tax benefits recognized,likelihood upon ultimate settlement | The tax benefits recognized in the financial statements from such a position is measured based on the largest benefit that has a greater than 50% likelihood of being realized upon ultimate settlement. | |||
Subsequent Event | ||||
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | ||||
Stock split, conversion ratio | 30 | |||
Elo | Promissory Note | ||||
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | ||||
Notes received | $ 10,000,000 | |||
Minimum | Investments under Equity Method | ||||
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | ||||
Voting interests of the investee | 20% | |||
Maximum [Member] | ||||
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | ||||
Revenue recognition for changes in total estimated time to be incurred in the future to satisfy the performance obligation | $ 1,600,000 | |||
Novartis | ||||
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | ||||
Revenue | 47% | 38% | ||
Deferred Revenue | 38% | |||
Prevail | ||||
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | ||||
Revenue | 53% | 62% | ||
Deferred Revenue | 62% | |||
Imugene | ||||
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | ||||
Aggregate principal amount | $ 13,000,000 | $ 13,000,000 | ||
iECURE | ||||
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | ||||
Investment in equity securities | $ 3,200,000 | $ 2,600,000 |
Description of Business and S_5
Description of Business and Summary of Significant Accounting Policies - Schedule of Depreciation and Amortization Periods of Property, Equipment and Software (Details) | Dec. 31, 2023 |
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | |
Property, Plant, and Equipment, Useful Life, Term, Description [Extensible Enumeration] | us-gaap:UsefulLifeTermOfLeaseMember |
Laboratory Equipment | Minimum | |
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | |
Property plant and equipment useful life | 5 years |
Laboratory Equipment | Maximum [Member] | |
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | |
Property plant and equipment useful life | 7 years |
Furniture and Fixtures and Office Equipment | Minimum | |
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | |
Property plant and equipment useful life | 3 years |
Furniture and Fixtures and Office Equipment | Maximum [Member] | |
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | |
Property plant and equipment useful life | 5 years |
Collaboration and License Agr_2
Collaboration and License Agreements - Additional Information (Details) - USD ($) | 1 Months Ended | 12 Months Ended | |||||
Jan. 07, 2024 | Aug. 15, 2023 | Jun. 14, 2022 | Jan. 06, 2021 | Jul. 31, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | |
Collaboration and License Agreements [Line items] | |||||||
Common stock, shares issued | 4,191,053 | 3,725,689 | |||||
Proceeds from offering of common stock, net of issuance costs | $ 4,986,000 | $ 49,345,000 | |||||
Revenue | 48,727,000 | 25,098,000 | |||||
Deferred revenue | 12,035,000 | 46,192,000 | |||||
Research and development | 53,375,000 | 46,122,000 | |||||
Prepaid expenses | 5,977,000 | 6,025,000 | |||||
Revenue recorded included in deferred revenue | 48,700,000 | ||||||
Imugene | |||||||
Collaboration and License Agreements [Line items] | |||||||
Milestone payments to be received for additional targets | $ 206,000,000 | ||||||
Revenue | 0 | ||||||
Cash received from sale of business | 8,000,000 | ||||||
Aggregate principal amount | 13,000,000 | 13,000,000 | |||||
Imugene | Maximum | |||||||
Collaboration and License Agreements [Line items] | |||||||
Milestone payments to be received for additional targets | $ 145,000,000 | ||||||
Research and Development Arrangement | |||||||
Collaboration and License Agreements [Line items] | |||||||
Additional cash payment | $ 2,250,000 | ||||||
Percentage of premium over the volume-weighted-average-price of the company’s common stock | 200% | ||||||
Initial milestone payment | $ 7,500,000 | ||||||
Cash milestone payment | 5,250,000 | ||||||
Research and development | 2,100,000 | ||||||
Research and Development Arrangement | Current Liabilities | |||||||
Collaboration and License Agreements [Line items] | |||||||
Deferred revenue | 7,400,000 | 27,900,000 | |||||
Research and Development Arrangement | Novartis Pharma AG | |||||||
Collaboration and License Agreements [Line items] | |||||||
Upfront cash payment | $ 50,000,000 | ||||||
Milestone payments to be received for additional targets | $ 1,400,000,000 | ||||||
Obligation to pay royalties expiry date | 10 years | ||||||
Transaction price from the Stock Purchase Agreement | $ 13,400,000 | ||||||
Revenue | 22,700,000 | 9,500,000 | |||||
Deferred revenue related to agreement | $ 32,400,000 | 54,200,000 | |||||
Research and Development Arrangement | Novartis Pharma AG | Stock Purchase Agreement | |||||||
Collaboration and License Agreements [Line items] | |||||||
Upfront cash payment | $ 50,000,000 | ||||||
Sale of stock, number of shares issued in transaction | 413,581 | ||||||
Aggregate purchase price | $ 25,000,000 | ||||||
Sale of stock, price per share | $ 60.3 | ||||||
Percentage of premium over the volume-weighted-average-price of the company’s common stock | 20% | ||||||
Upfront Compensation | $ 75,000,000 | ||||||
Equity upon the issuance of the shares | 11,600,000 | ||||||
Transaction price allocated to the revenue arrangement | $ 63,400,000 | ||||||
Sale of stock, description of transaction | Pursuant to the Novartis Stock Purchase Agreement, subject to certain exceptions, Novartis may not sell the Novartis Shares without the Company’s approval for a period of two years following the Novartis Effective Date. In addition, for a period of two years following the Novartis Effective Date, Novartis and its affiliates may not (a) effect or otherwise participate in, directly or indirectly, any acquisition of any of our securities or material assets, any tender offer or exchange offer, merger or other business combination or change of control involving the Company, any recapitalization, restructuring, liquidation, dissolution or other extraordinary transaction with respect to the Company, or any solicitation of proxies or consents to vote any of the Company’s securities or (b) act with any other person, or publicly disclose any intention, to do any of the foregoing. The Novartis Stock Purchase Agreement also contains customary representations, warranties, and covenants of both parties. | ||||||
Research and Development Arrangement | TG License | |||||||
Collaboration and License Agreements [Line items] | |||||||
Upfront cash payment | 10,000,000 | ||||||
Additional cash payment | 7,500,000 | ||||||
Additional cash payment | $ 5,250,000 | ||||||
First additional cash payment date | Feb. 05, 2024 | ||||||
Additional cash payment | $ 2,250,000 | ||||||
Second additional cash payment date | Feb. 04, 2024 | ||||||
Sale of stock, number of shares issued in transaction | 97,360 | ||||||
Percentage of premium over the volume-weighted-average-price of the company’s common stock | 200% | ||||||
Shares issued price per share | $ 11.166 | ||||||
Milestone payments to be received for additional targets | $ 3,000,000 | ||||||
Cash payable in exchange for the issuance of stock | 10,000,000 | ||||||
Deferred cash payments | $ 2,500,000 | ||||||
Percentage of value of each additional milestone payment | 50% | ||||||
Equity upon the issuance of the shares | $ 3,000,000 | ||||||
Research and Development Arrangement | TG License | Maximum | |||||||
Collaboration and License Agreements [Line items] | |||||||
Milestone payments to be received for additional targets | $ 288,600,000 | ||||||
Research and Development Arrangement | Prevail | |||||||
Collaboration and License Agreements [Line items] | |||||||
Upfront cash payment | $ 100,000,000 | ||||||
Milestone payments to be received for additional targets | 420,000,000 | ||||||
Transaction price from the Stock Purchase Agreement | 7,300,000 | ||||||
Revenue | $ 26,000,000 | 15,600,000 | |||||
Deferred revenue related to agreement | 52,700,000 | 74,800,000 | |||||
Research and Development Arrangement | Prevail | Minimum | |||||||
Collaboration and License Agreements [Line items] | |||||||
Milestone payments to be received for additional targets | 390,000,000 | ||||||
Research and Development Arrangement | Prevail | Maximum | |||||||
Collaboration and License Agreements [Line items] | |||||||
Milestone payments to be received for additional targets | $ 395,000,000 | ||||||
Research and Development Arrangement | Prevail | Current Liabilities | |||||||
Collaboration and License Agreements [Line items] | |||||||
Deferred revenue | 4,700,000 | 18,300,000 | |||||
Research and Development Arrangement | Prevail | Stock Purchase Agreement | |||||||
Collaboration and License Agreements [Line items] | |||||||
Common stock, shares issued | 125,406 | ||||||
Proceeds from offering of common stock, net of issuance costs | $ 35,000,000 | ||||||
Upfront Compensation | 135,000,000 | ||||||
Equity upon the issuance of the shares | 27,700,000 | ||||||
Transaction price allocated to the revenue arrangement | $ 107,300,000 | ||||||
Research and Development Arrangement | iECURE | |||||||
Collaboration and License Agreements [Line items] | |||||||
Carrying value of fair value | $ 600,000 | $ 500,000 |
Share-Based Compensation - Addi
Share-Based Compensation - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Mar. 12, 2019 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Options outstanding | 349,662 | 457,097 | 330,386 | |
Share based compensation expense | $ 14,040 | $ 19,197 | ||
Intrinsic value of Stock options exercised | $ 700 | |||
Unrecognized compensation cost | $ 16,700 | |||
Weighted-average period for recognition of compensation cost | 1 year 9 months 18 days | |||
Maximum | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Intrinsic value of Stock options exercised | $ 100 | |||
Restricted Stock Units | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
RSU outstanding | 214,857 | 120,550 | 25,668 | |
Share Based Compensation Arrangement By Share Based Payment Award Options Grants In Period Gross | 161,161 | 110,842 | ||
Share Based Compensation Arrangement By Share Based Payment Award Options Grant Date Fair Value | $ 5,600 | |||
ESPP | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Share based compensation expense | $ 100 | $ 200 | ||
2015 Plan | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Remaining shares available to be granted | 0 | |||
Options outstanding | 36,552 | |||
2019 Plan | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Options outstanding | 211,303 | |||
Number of shares available for issuance | 158,333 | 367,616 | ||
Number of shares available to be issued | 122,630 | |||
Allowed annual percentage increase in shares authorized as percentage of outstanding shares of common stock | 4% | |||
2019 Plan | Restricted Stock Units | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
RSU outstanding | 214,857 | |||
2019 ESPP | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Remaining shares available to be granted | 76,323 | |||
Allowed annual percentage increase in shares authorized as percentage of outstanding shares of common stock | 1% | |||
Increase in common stock available for issuance | 91,903 | |||
Purchase of common stock through payroll deductions expressed in percentage of fair market value | 85% | |||
Total number of shares issued under 2019 ESPP | 33,080 | |||
2019 ESPP | Maximum | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Remaining shares available to be granted | 17,500 | |||
Inducement Award Plan | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Options outstanding | 101,807 | |||
Number of shares available for issuance | 190,739 | |||
Inducement Award Plan | Maximum | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Maximum shares allowed to be issued under ESPP | 300,000 | |||
Inducement Award Plan | Restricted Stock Units | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
RSU outstanding | 0 |
Share-Based Compensation - Sche
Share-Based Compensation - Schedule of Employee and Nonemployee Stock-Based Compensation Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||
Share-based compensation expense | $ 14,040 | $ 19,197 |
Employee | ||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||
Share-based compensation expense | 12,364 | 15,921 |
Nonemployee | ||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||
Share-based compensation expense | $ 1,676 | $ 3,276 |
Share-Based Compensation - Sc_2
Share-Based Compensation - Schedule of Stock-Based Compensation Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||
Share-based compensation expense | $ 14,040 | $ 19,197 |
Stock Option | ||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||
Share-based compensation expense | 14,040 | 19,197 |
Research and Development | Stock Option | ||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||
Share-based compensation expense | 4,355 | 7,973 |
General and Administrative | Stock Option | ||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||
Share-based compensation expense | $ 9,685 | $ 11,224 |
Share-Based Compensation - Sc_3
Share-Based Compensation - Schedule of Stock Options Valuation Assumptions Using a Black-Scholes Option Pricing Model (Details) - $ / shares | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Share-Based Payment Arrangement [Abstract] | ||
Estimated dividend yield | 0% | 0% |
Weighted-average expected stock price volatility | 87.15% | 79.66% |
Weighted-average risk-free interest rate | 3.89% | 2.57% |
Expected term of options (in years) | 5 years 9 months 10 days | 6 years 25 days |
Weighted-average fair value per option | $ 17.41 | $ 55.91 |
Share-Based Compensation - Summ
Share-Based Compensation - Summary of Activity of Option Plans (Details) - $ / shares | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Share-Based Payment Arrangement [Abstract] | ||
Outstanding Option Shares, Beginning Balance | 457,097 | 330,386 |
Option, Granted | 20,443 | 223,670 |
Option, Exercised | (3,196) | (11,186) |
Option, Forfeited/cancelled | (124,682) | (85,773) |
Outstanding Option Shares, Ending Balance | 349,662 | 457,097 |
Weighted-Average Exercise Price Outstanding at Beginning Balance | $ 191.07 | $ 278.33 |
Weighted-Average Exercise Price, Granted | 23.61 | 80.71 |
Weighted-Average Exercise Price, Exercised | 9.59 | 35.13 |
Weighted-Average Exercise Price, Forfeited/canceled | 221.38 | 259.72 |
Weighted-Average Exercise Price Outstanding at Ending Balance | $ 172.13 | $ 191.07 |
Share-Based Compensation - Su_2
Share-Based Compensation - Summary of Activity of RSUs (Details) - Restricted Stock Units - $ / shares | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Unvested RSUs, Beginning Balance | 120,550 | 25,668 |
Granted | 161,161 | 110,842 |
Forfeited | (19,961) | (6,404) |
Vested | (46,893) | (9,556) |
Unvested RSUs, Ending Balance | 214,857 | 120,550 |
Weighted-Average Grant Date Fair Value, Beginning Balance | $ 106.49 | $ 338.76 |
Weighted-Average Grant Date Fair Value, Granted | 34.49 | 78.73 |
Weighted-Average Grant Date Fair Value, Forfeited | 109.19 | 214.04 |
Weighted-Average Grant Date Fair Value, Vested | 112.02 | 336.29 |
Weighted-Average Grant Date Fair Value, Ending Balance | $ 51.03 | $ 106.49 |
Share-Based Compensation - Su_3
Share-Based Compensation - Summary of Stock Options Granted under the Stock Option Plans are Vested or Expected to Vest (Details) - $ / shares | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Share-Based Payment Arrangement [Abstract] | ||
Expected to be exercisable, Number of Options | 349,662 | 457,097 |
Currently exercisable, Number of Options | 223,019 | 176,113 |
Expected to be exercisable, Weighted-Average Remaining Contractual Life (in years) | 7 years 1 month 24 days | 6 years 7 months 2 days |
Currently exercisable, Weighted-Average Remaining Contractual Life (in years) | 6 years 6 months 29 days | 4 years 6 months 21 days |
Expected to be exercisable, Weighted-Average Exercise Price | $ 172.13 | $ 191.07 |
Currently exercisable, Weighted-Average Exercise Price | $ 199 | $ 275.62 |
Share-Based Compensation - Su_4
Share-Based Compensation - Summary of Stock Option Outstanding under the Stock Option Plans (Details) - $ / shares | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Share Based Compensation Shares Authorized Under Stock Option Plans Exercise Price Range [Line Items] | ||
Number of Options Outstanding | 349,662 | 457,097 |
Number of Options Exercisable | 223,019 | 176,113 |
$12.30 - $46.50 | ||
Share Based Compensation Shares Authorized Under Stock Option Plans Exercise Price Range [Line Items] | ||
Exercise price, lower limit | $ 12.3 | |
Exercise price, upper limit | $ 46.5 | |
Number of Options Outstanding | 67,401 | |
Weighted- Average Remaining Life | 7 years 7 months 24 days | |
Number of Options Exercisable | 27,084 | |
$50.40 - $100.20 | ||
Share Based Compensation Shares Authorized Under Stock Option Plans Exercise Price Range [Line Items] | ||
Exercise price, lower limit | $ 50.4 | |
Exercise price, upper limit | $ 100.2 | |
Number of Options Outstanding | 77,327 | |
Weighted- Average Remaining Life | 8 years 4 months 2 days | |
Number of Options Exercisable | 49,906 | |
$122.40 - $174.90 | ||
Share Based Compensation Shares Authorized Under Stock Option Plans Exercise Price Range [Line Items] | ||
Exercise price, lower limit | $ 122.4 | |
Exercise price, upper limit | $ 174.9 | |
Number of Options Outstanding | 64,477 | |
Weighted- Average Remaining Life | 7 years 4 months 6 days | |
Number of Options Exercisable | 35,163 | |
$189.30 - $293.70 | ||
Share Based Compensation Shares Authorized Under Stock Option Plans Exercise Price Range [Line Items] | ||
Exercise price, lower limit | $ 189.3 | |
Exercise price, upper limit | $ 293.7 | |
Number of Options Outstanding | 65,372 | |
Weighted- Average Remaining Life | 7 years 1 month 6 days | |
Number of Options Exercisable | 46,526 | |
$305.10 - $480.00 | ||
Share Based Compensation Shares Authorized Under Stock Option Plans Exercise Price Range [Line Items] | ||
Exercise price, lower limit | $ 305.1 | |
Exercise price, upper limit | $ 480 | |
Number of Options Outstanding | 75,085 | |
Weighted- Average Remaining Life | 5 years 3 months 29 days | |
Number of Options Exercisable | 64,340 | |
$0.60 - $46.50 | ||
Share Based Compensation Shares Authorized Under Stock Option Plans Exercise Price Range [Line Items] | ||
Exercise price, lower limit | $ 0.6 | |
Exercise price, upper limit | $ 46.5 | |
Number of Options Outstanding | 67,565 | |
Weighted- Average Remaining Life | 7 years 10 days | |
Number of Options Exercisable | 20,547 | |
$50.40 - $100.20 | ||
Share Based Compensation Shares Authorized Under Stock Option Plans Exercise Price Range [Line Items] | ||
Exercise price, lower limit | $ 50.4 | |
Exercise price, upper limit | $ 100.2 | |
Number of Options Outstanding | 81,367 | |
Weighted- Average Remaining Life | 9 years 1 month 20 days | |
Number of Options Exercisable | 194 | |
$122.40 - $136.80 | ||
Share Based Compensation Shares Authorized Under Stock Option Plans Exercise Price Range [Line Items] | ||
Exercise price, lower limit | $ 122.4 | |
Exercise price, upper limit | $ 136.8 | |
Number of Options Outstanding | 73,906 | |
Weighted- Average Remaining Life | 7 years 1 month 17 days | |
Number of Options Exercisable | 47 | |
$170.10 - $293.70 | ||
Share Based Compensation Shares Authorized Under Stock Option Plans Exercise Price Range [Line Items] | ||
Exercise price, lower limit | $ 170.1 | |
Exercise price, upper limit | $ 293.7 | |
Number of Options Outstanding | 117,590 | |
Weighted- Average Remaining Life | 5 years 10 months 6 days | |
Number of Options Exercisable | 69,761 | |
$305.10 - $480.00 | ||
Share Based Compensation Shares Authorized Under Stock Option Plans Exercise Price Range [Line Items] | ||
Exercise price, lower limit | $ 305.1 | |
Exercise price, upper limit | $ 480 | |
Number of Options Outstanding | 116,669 | |
Weighted- Average Remaining Life | 4 years 11 months 15 days | |
Number of Options Exercisable | 85,564 |
Retirement Plan - Additional In
Retirement Plan - Additional Information (Details) - USD ($) $ in Millions | 1 Months Ended | 12 Months Ended | |
Jan. 31, 2011 | Dec. 31, 2023 | Dec. 31, 2022 | |
Defined Contribution Plan Disclosure [Line Items] | |||
Defined Contribution Plan, Maximum Annual Contributions Per Employee, Percent | 100% | ||
Defined contribution plan, Administrative fees | $ 0.1 | $ 0.1 | |
Defined contribution plan, Employer matching contribution percentage of match | 100% | ||
Defined Contribution Plan, Company made contribution to the retirement plan | $ 0.9 | $ 0.9 | |
Maximum [Member] | |||
Defined Contribution Plan Disclosure [Line Items] | |||
Defined contribution plan, Employer matching contribution, percent of employees' gross pay | 4% |
Impairment Charges - Additional
Impairment Charges - Additional Information (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Asset Impairment Charges [Abstract] | ||
Impairment charges related to PCSK | $ 0 | $ 10,800,000 |
Impairment, Intangible Asset, Indefinite-Lived (Excluding Goodwill), Statement of Income or Comprehensive Income [Extensible Enumeration] | Asset Impairment Charges |
Net Loss Per Share - Schedule O
Net Loss Per Share - Schedule Of Basic And Diluted Net Income (Loss) Per Share Attributable To Common Stockholders (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Earnings Per Share [Abstract] | ||
Loss from continuing operations (in thousands) | $ (42,527) | $ (72,909) |
Loss from discontinued operations (in thousands) | (18,792) | (38,728) |
Net loss | $ (61,319) | $ (111,637) |
Weighted average common shares outstanding - basic | 3,841,405 | 2,929,873 |
Weighted average common shares outstanding - diluted | 3,841,405 | 2,929,873 |
Loss from continuing operations - basic | $ (11.07) | $ (24.88) |
Loss from continuing operations - diluted | (11.07) | (24.88) |
Loss from discontinued operations - basic | (4.89) | (13.22) |
Loss from discontinued operations - diluted | (4.89) | (13.22) |
Net loss per share - basic | (15.96) | (38.1) |
Net loss per share - diluted | $ (15.96) | $ (38.1) |
Net Loss Per Share - Schedule_2
Net Loss Per Share - Schedule of Common Share Equivalent Securities Excluded from Calculation of Diluted loss per share (Details) - shares | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Antidilutive common share equivalents | 249,056 | 154,566 |
Restricted Stock Units | ||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Antidilutive common share equivalents | 230,646 | 73,300 |
Stock Option | ||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Antidilutive common share equivalents | 10,345 | 79,222 |
Unsettled ESPP Contributions | ||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Antidilutive common share equivalents | 8,065 | 2,044 |
Property, Equipment and Softw_3
Property, Equipment and Software and Assets Held for Sale - Schedule of PP&E (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Property Plant And Equipment [Line Items] | ||
Total property, equipment and software | $ 31,826 | $ 33,684 |
Less accumulated depreciation and amortization | 25,488 | 21,869 |
Property, equipment and software - net | 6,338 | 11,815 |
Construction in Progress | ||
Property Plant And Equipment [Line Items] | ||
Total property, equipment and software | 70 | 520 |
Leasehold Improvements | ||
Property Plant And Equipment [Line Items] | ||
Total property, equipment and software | 11,945 | 11,946 |
Software | ||
Property Plant And Equipment [Line Items] | ||
Total property, equipment and software | 432 | 442 |
Laboratory Equipment | ||
Property Plant And Equipment [Line Items] | ||
Total property, equipment and software | 15,856 | 17,271 |
Office Equipment | ||
Property Plant And Equipment [Line Items] | ||
Total property, equipment and software | 1,399 | 1,408 |
Furniture and Fixtures | ||
Property Plant And Equipment [Line Items] | ||
Total property, equipment and software | $ 2,124 | $ 2,097 |
Property, Equipment and Softw_4
Property, Equipment and Software and Assets Held for Sale - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Property Plant And Equipment [Line Items] | ||
Depreciation and amortization | $ 6,817 | $ 7,798 |
Property, plant and equipment held for sale | 500 | |
Impairment on assets held for sale | 500 | |
Property, Equipment, Leasehold Improvements and Software | ||
Property Plant And Equipment [Line Items] | ||
Depreciation and amortization | $ 5,200 | $ 5,200 |
Intangible Assets - Schedule of
Intangible Assets - Schedule of Intangible Assets, Net (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
License cost | $ 548 | $ 910 |
Less: accumulated amortization | (148) | (179) |
Intangible assets, net | $ 400 | $ 731 |
Intangible Assets - Additional
Intangible Assets - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Amortization of intangible assets | $ 0.1 | |
Intangible assets amortization expense 2029 and beyond | $ 0.2 | |
Maximum | ||
Amortization of intangible assets | $ 0.1 | |
Intangible assets amortization expense for 2024 | 0.1 | |
Intangible assets amortization expense for 2025 | 0.1 | |
Intangible assets amortization expense for 2026 | 0.1 | |
Intangible assets amortization expense for 2027 | $ 0.1 |
Fair Value Measurements - Sched
Fair Value Measurements - Schedule of Assets Measured at Fair Value on Recurring Basis (Details) - Fair Value Measurements Recurring - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Assets | $ 29,550 | $ 43,444 |
Liabilities | 215 | 199 |
Imugene Convertible Note | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Assets | 11,897 | |
Repurchase Agreements | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Assets | 40,000 | |
Investment in iECURE | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Assets | 3,206 | 2,576 |
Level 1 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Assets | 13,960 | 868 |
Level 2 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Assets | 11,897 | 40,000 |
Liabilities | 215 | 199 |
Level 2 | Imugene Convertible Note | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Assets | 11,897 | |
Level 2 | Repurchase Agreements | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Assets | 40,000 | |
Level 3 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Assets | 3,693 | 2,576 |
Level 3 | Investment in iECURE | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Assets | 3,206 | 2,576 |
Money Market Funds | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Assets | 13,960 | 868 |
Money Market Funds | Level 1 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Assets | 13,960 | $ 868 |
Assets Held for Sale | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Assets | 487 | |
Assets Held for Sale | Level 3 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Assets | $ 487 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional information (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Investment in equity securities | $ 1,145 | $ (510) |
Imugene Convertible Note | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Aggregate principal amount | $ 13,000 | |
Debt instrument maturity date | Aug. 15, 2024 | |
I E C U R E [Member] | Equity Issuance Agreement [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Investment in equity securities | $ 600 | |
Revolving Credit Facility [Member] | Seventh Amendment To Revolving Line [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Change in fair value of final payment fee | $ 100 |
Fair Value Measurements - Summa
Fair Value Measurements - Summary of Financial Assets Measured at Fair Value on Recurring Basis Using Significant Unobservable Inputs (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2023 USD ($) | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Abstract] | |
Balance December 31, 2022 | $ 2,576 |
Gains from changes in fair value included in earnings | $ 630 |
Fair Value, Asset, Recurring Basis, Unobservable Input Reconciliation, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Fair Value, Option, Changes in Fair Value, Gain (Loss) |
Balance December 31, 2023 | $ 3,206 |
Elo Transaction - Additional In
Elo Transaction - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Deconsolidation of Subsidiary [Line Items] | ||
Interest rate during period | 9.25% | |
Loss from equity method investment | $ (4,931) | $ (1,579) |
Carrying value of Investment | 2,172 | |
Carrying value of note receivable | $ 4,990 | $ 7,234 |
Elo | ||
Deconsolidation of Subsidiary [Line Items] | ||
Percentage of voting shares outstanding | 37% | 37% |
Loss from equity method investment | $ 4,900 | $ 6,300 |
Carrying value of Investment | 0 | |
Promissory Note | Elo | ||
Deconsolidation of Subsidiary [Line Items] | ||
Notes received | $ 10,000 | |
Debt instrument maturity date | Dec. 01, 2028 | |
Interest rate during period | 2% | |
Promissory note discount | $ 5,000 | |
Loss from equity method investment | 2,800 | |
Carrying value of note receivable | $ 5,000 |
Debt - Additional Information (
Debt - Additional Information (Details) - USD ($) $ in Millions | 1 Months Ended | 12 Months Ended | |||
Jul. 31, 2022 | May 31, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | May 31, 2021 | |
Debt Instrument [Line Items] | |||||
Interest rate during period | 9.25% | ||||
Effective interest rate | 10.30% | ||||
Pacific Western Loan Agreement | Revolving Credit Facility | |||||
Debt Instrument [Line Items] | |||||
Aggregate principal amount | $ 30 | ||||
Borrowings | $ 22.5 | $ 22.5 | |||
Unamortized revolving line debt discount balance | $ 0.3 | ||||
Pacific Western Loan Agreement | Maximum | Revolving Credit Facility | |||||
Debt Instrument [Line Items] | |||||
Unamortized revolving line debt discount balance | $ 0.1 | ||||
Seventh Amendment to Revolving Line | Revolving Credit Facility | |||||
Debt Instrument [Line Items] | |||||
Basis point added to the prime rate | 0.75% | ||||
Maturity of line of credit | Jun. 23, 2024 | ||||
Seventh Amendment to Revolving Line | Minimum | Revolving Credit Facility | |||||
Debt Instrument [Line Items] | |||||
Required balance of unrestricted cash at bank | $ 10 | ||||
Interest rate during period | 4.25% |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Commitments And Contingencies [Line Items] | ||
Contingent liability for aggregate minimum lease payments | $ 5,800,000 | |
Contract Liabilities | ||
Commitments And Contingencies [Line Items] | ||
Contract liabilities | $ 10,000,000 | $ 10,000,000 |
Supply Agreements | ||
Commitments And Contingencies [Line Items] | ||
Agreement termination notice period | 1 year | |
Imugene | ||
Commitments And Contingencies [Line Items] | ||
Lease expiration date | Aug. 31, 2027 | |
Guarantor contract liability | $ 0 |
Commitments and Contingencies_2
Commitments and Contingencies - Components of Lease Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Lease Cost | ||
Operating lease cost | $ 2,043 | $ 1,644 |
Short-term lease cost | 742 | 563 |
Variable lease cost | 692 | 746 |
Sublease income | (137) | |
Total Lease Cost | 3,340 | 2,953 |
Other Information | ||
Operating cash flows used for operating leases | 2,026 | $ 2,264 |
Operating right-of-use assets obtained in exchange for lease obligations | 9,955 | |
Operating lease liabilities arising from obtaining right-of-use assets | $ 9,328 | |
Weighted average remaining lease term (in years) | 5 years 7 months 6 days | 2 years 10 months 24 days |
Weighted average discount rate | 9.20% | 7.70% |
Commitments and Contingencies_3
Commitments and Contingencies - Schedule of Future Lease Payments under Non-Cancelable Leases (Details) $ in Thousands | Dec. 31, 2023 USD ($) |
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | |
2024 | $ 1,888 |
2025 | 1,962 |
2026 | 2,019 |
2027 | 2,078 |
2028 | 2,140 |
2029 and beyond | 1,269 |
Total lease payments | 11,356 |
Less: imputed interest | 2,500 |
Total operating lease liabilities | $ 8,856 |
Stockholders' Equity - Addition
Stockholders' Equity - Additional Information (Details) - $ / shares | Dec. 31, 2023 | Dec. 31, 2022 |
Stockholders' Equity Note [Abstract] | ||
Common stock, shares authorized | 200,000,000 | 200,000,000 |
Common stock, par value | $ 0.000005 | $ 0.000005 |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Preferred stock, par value | $ 0.0001 | $ 0.0001 |
Discontinued Operations - Sched
Discontinued Operations - Schedule of Assets and Liabilities of Discontinued Operations on Company's Balance Sheet (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Current assets of discontinued operations | ||
Total current assets of discontinued operations | $ 1,556 | |
Noncurrent assets of discontinued operations | ||
Total noncurrent assets of discontinued operations | 12,346 | |
Current liabilities of discontinued operations | ||
Total current liabilities of discontinued operations | $ 2,513 | 3,465 |
Noncurrent liabilities of discontinued operations | ||
Total noncurrent liabilities of discontinued operations | 128 | 1,717 |
Cell Therapy Operations | ||
Current assets of discontinued operations | ||
Prepaid expenses | 1,527 | |
Other current assets | 29 | |
Total current assets of discontinued operations | 1,556 | |
Noncurrent assets of discontinued operations | ||
Property, equipment, and software - net | 8,375 | |
Intangible assets-net | 617 | |
Right-of-use assets-net | 1,010 | |
Other assets | 2,344 | |
Total noncurrent assets of discontinued operations | 12,346 | |
Total assets of discontinued operations | 13,902 | |
Current liabilities of discontinued operations | ||
Accounts payable | 158 | 572 |
Accrued compensation | 1,155 | |
Accrued research and development expenses | 2,355 | 1,379 |
Lease liabilities | 359 | |
Total current liabilities of discontinued operations | 2,513 | 3,465 |
Noncurrent liabilities of discontinued operations | ||
Lease liabilities | 1,717 | |
Total noncurrent liabilities of discontinued operations | 1,717 | |
Total liabilities of discontinued operations | $ 2,513 | $ 5,182 |
Discontinued Operations - Summa
Discontinued Operations - Summary of Results of Operations of Discontinued Operations (Details) - Cell Therapy Operations - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Disposal Group, Including Discontinued Operation, Income Statement Disclosures [Abstract] | ||
Research and development expense | $ (26,438) | $ (37,817) |
General and administrative expense | (57) | (241) |
Impairment of long lived assets | (641) | (594) |
Loss on disposal of assets | (102) | (76) |
Loss from discontinued operations related to classes of expenses | (27,238) | (38,728) |
Gain from disposal of discontinued operations | 8,446 | |
Loss from discontinued operations | $ (18,792) | $ (38,728) |
Discontinued Operations - Signi
Discontinued Operations - Significant Non-cash Items and Proceeds from Sales of Assets Related to Discontinued Operations (Details) - Cell Therapy Operations - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation and amortization | $ 1,631 | $ 2,582 |
Share-based compensation | 713 | 2,563 |
Impairment charges | 641 | 594 |
Loss on disposal of assets | 102 | $ 76 |
Gain on disposal of business | (8,446) | |
Cash flows provided by investing activities | ||
Proceeds from disposal of business | 8,000 | |
Proceeds from sale of equipment | $ 37 |
Income Taxes - Schedule of Defe
Income Taxes - Schedule of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Noncurrent deferred tax assets: | ||
Net operating loss carryforwards | $ 45,472 | $ 36,457 |
Contribution carryforwards | 34 | 48 |
Lease liability | 2,116 | 1,120 |
Deferred revenue | 20,337 | 30,022 |
Capitalized R&D costs | 28,732 | 15,893 |
Other assets | 14,962 | 14,279 |
Tax credits | 30,757 | 24,721 |
Less: valuation allowance | (139,133) | (121,372) |
Total deferred tax assets, noncurrent | 3,277 | 1,168 |
Noncurrent deferred tax liability: | ||
Investments and other | 476 | |
Deferred gain - Imugene | 1,303 | |
Right of use asset | 1,974 | 692 |
Total deferred tax liabilities, noncurrent | $ 3,277 | $ 1,168 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2030 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Income Tax Disclosure [Line Items] | ||||
Increase (decrease) in valuation allowance of net deferred tax assets | $ 17,800,000 | |||
Net Operating loss carry forwards expiration year | 2027 | |||
Ownership percentage change in outstanding common stock period | 3 years | |||
Ownership Percentage Change Of Outstanding Common Stock | 50% | |||
Uncertain tax position | $ 0 | |||
Unrecognized tax benefits | 0 | $ 0 | ||
Unrecognized tax benefits, income tax penalties and interest accrued | $ 0 | 0 | ||
Percentage of decrease in corporate income tax rate | 2.50% | |||
GILTI tax expense | $ 0 | 0 | ||
Forecast | ||||
Income Tax Disclosure [Line Items] | ||||
Percentage of decrease in corporate income tax rate | 0% | |||
Federal | ||||
Income Tax Disclosure [Line Items] | ||||
Net operating loss carryforwards | 195,000,000 | 159,500,000 | ||
Federal contribution carryforwards | $ 200,000 | $ 200,000 | ||
Federal contribution expiration beginning year | 2023 | 2023 | ||
Federal | Research and Development | ||||
Income Tax Disclosure [Line Items] | ||||
Tax credit carryforwards | $ 17,200,000 | $ 13,200,000 | ||
Tax credit carry forwards expiration beginning year | 2029 | |||
Federal | Orphan Drug Tax Credit Carry forward | ||||
Income Tax Disclosure [Line Items] | ||||
Tax credit carryforwards | $ 13,500,000 | $ 11,600,000 | ||
Tax credit carry forwards expiration beginning year | 2038 | 2038 | ||
State | ||||
Income Tax Disclosure [Line Items] | ||||
Net operating loss carryforwards | $ 166,800,000 | 119,100,000 | ||
State | Research and Development | ||||
Income Tax Disclosure [Line Items] | ||||
Tax credit carry forwards expiration beginning year | 2030 | |||
Maximum [Member] | State | Research and Development | ||||
Income Tax Disclosure [Line Items] | ||||
Tax credit carryforwards | $ 100,000 | $ 100,000 |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of Federal Statutory Income Tax Rate and Income Tax Benefit (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Reconciliation of income taxes amount, Amount | ||
Income tax expense at statutory rate, Amount | $ (12,877) | $ (23,444) |
State income taxes, net of federal tax benefit, Amount | (1,774) | (250) |
Non-deductible expenses, Amount | 85 | 33 |
Stock compensation - nondeductible, Amount | 681 | 599 |
Stock compensation - forfeitures, Amount | 3,176 | 2,233 |
R&D and orphan drug credits, Amount | (6,078) | (3,790) |
Other, Amount | 657 | 314 |
Change in state tax rate | (1,632) | (3,004) |
Change in valuation allowance, Amount | $ 17,762 | $ 27,309 |
Reconciliation of income taxes rate, Percentage | ||
Income tax expense at statutory rate, Percentage | 21% | 21% |
State income taxes, net of federal tax benefit, Percentage | 2.90% | 0.20% |
Non-deductible expenses, Percentage | 0% | 0% |
Stock compensation - nondeductible, Percentage | (1.20%) | (0.50%) |
Stock compensation - forfeitures, Percentage | (5.20%) | (2.00%) |
R&D and orphan drug credits, Percentage | 9.90% | 3.40% |
Other, Percentage | (1.10%) | (0.30%) |
Change in state tax rate | 2.70% | (2.70%) |
Change in valuation allowance, Percentage | (29.00%) | (24.50%) |
Total effective tax rate | 0% | 0% |
Segment Reporting - Additional
Segment Reporting - Additional Information (Details) | 12 Months Ended |
Dec. 31, 2023 Segment | |
Segment Reporting [Abstract] | |
Number of reportable segments | 1 |
Subsequent Events - Additional
Subsequent Events - Additional Information (Details) - USD ($) $ / shares in Units, $ in Millions | 1 Months Ended | |||
Feb. 13, 2024 | Mar. 31, 2024 | Dec. 31, 2023 | Dec. 31, 2022 | |
Subsequent Event [Line Items] | ||||
Common stock, shares issued | 4,191,053 | 3,725,689 | ||
Subsequent Event | Reverse Stock Split | ||||
Subsequent Event [Line Items] | ||||
Number of shares issued | 30 | |||
Subsequent Event | Common Stock Offering | ||||
Subsequent Event [Line Items] | ||||
Number of shares issued | 2,500,000 | |||
Common stock, shares issued | 2,500,000 | |||
Offering price per share | $ 16 | |||
Exercise price per share | $ 20 | |||
Shares exercisable expiry date | Mar. 05, 2029 | |||
Proceeds from stock plans | $ 40 | |||
Offering expense | $ 2.9 | |||
Number of days option to purchase | 30 days | |||
Common stock shares purchased | 375,000 | |||
Shares issued price per share | $ 16 |