Property and Equipment and Related Impairment

6 Months Ended

Jun. 30, 2024

Property, Plant and Equipment [Abstract]

Property and Equipment and Related Impairment

5. Property and Equipment and Related Impairment

Property and equipment consist of the following (in thousands) as of June 30, 2024 and December 31, 2023:

	June 30,			December 31,
	2024			2023
Property and equipment:
Laboratory equipment	$	4,169		$	2,736
Computer software and equipment		160			105
Office furniture and fixtures		934			662
Leasehold improvements		485			461
Total	$	5,748		$	3,964
Less: Accumulated depreciation		(2,200	)		(1,921	)
Less: Impairment		(1,883	)		—
Property and equipment, net	$	1,665		$	2,043

During the second quarter of 2024 and as a result of the Company’s Phase 3 ENLIGHTEN 1 trial failing to meet its primary endpoint, the Company performed a recoverability test for its property and equipment. The Company concluded that the undiscounted cash flows associated with its property and equipment was less than the carrying value of the property and equipment. The Company compared the fair value of the property and equipment to the carrying value and recorded an impairment charge in the amount of $1.9 million which is included as an impairment of property and equipment in the accompanying consolidated statements of operations and comprehensive loss for the three and six months ended June 30, 2024. The Company determined fair market value of the equipment based on a third-party appraisal of the equipment through use of publicly available used equipment quotes. The equipment was valued as of May 15, 2024.