Equity Method Investment

12 Months Ended

Dec. 31, 2023

Equity Method Investments and Joint Ventures [Abstract]

Equity Method Investment

15. Equity Method Investment

The Company holds a 10% equity interest in the common stock of Telomeron, Inc., which it acquired in 2016 for $10.0 million. The Company determined it has the ability to exercise influence over Telomeron and, therefore, uses the equity method of accounting to account for its equity interest. Telomeron holds certain contributed technology from its parent that does not have a recognized carrying value and, as such, the Company’s cost of the investment exceeds its proportionate share of the net assets by $10.0 million. The Company’s excess basis allocated to amortizable assets is recognized on a straight-line basis over the life of the contributed technology, which is estimated to be 20 years. Amortization expense for the years ended December 31, 2023 and 2022 amounted to $0.5 million, and was recorded within interest and other expense, net in the consolidated statements of operations. Telomeron has not recorded any other activity, including declaring any dividends; therefore, no other earnings, losses or adjustments to the carrying value of the investment have been recorded to date. The carrying value of the Telomeron investment as of December 31, 2023 and 2022 was $6.4 million and $6.9 million, respectively, as a result of the amortization of the basis difference.