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Property and Equipment and Related Impairment
 12 Months Ended
Dec. 31, 2024
Property, Plant and Equipment [Abstract]  
Property and Equipment and Related Impairment

6. Property and Equipment and Related Impairment

Property and equipment consist of the following (in thousands):

 

 

 

December 31,

 

 

 

2024

 

 

2023

 

Property and equipment:

 

 

 

 

 

 

Laboratory equipment

 

$

3,927

 

 

$

2,736

 

Computer software and equipment

 

 

159

 

 

 

105

 

Office furniture and fixtures

 

 

961

 

 

 

662

 

Leasehold improvements

 

 

486

 

 

 

461

 

Total

 

$

5,533

 

 

$

3,964

 

Accumulated depreciation

 

 

(4,129

)

 

 

(1,921

)

Property and equipment, net

 

$

1,404

 

 

$

2,043

 

Accumulated depreciation includes $1.9 million and $1.6 million related to loss on impairment of property and equipment described below for the years ended December 31, 2024 and 2023, respectively. In addition, the Company recognized approximately $0.5 million and $0.3 million of depreciation expense for the years ended December 31, 2024 and 2023, respectively.

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 consolidated statements of operations and comprehensive loss for the year ended December 31, 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. The Company reassessed the need for any further impairment as of December 31, 2024, and determined no additional impairment indicators existed.

Additionally, the Company recognized an impairment charge of $1.6 million for the year ended December 31, 2023, related to specific facts and circumstances of a prior year agreement termination with a CMO. This impairment evaluation related to the net book value of leasehold improvement and laboratory equipment assets held at the CMO.