Impairment of Right of Use Assets

12 Months Ended

Dec. 31, 2024

Asset Impairment Charges [Abstract]

Impairment of Right of Use Assets

7. Impairment of Right-of-Use Assets

In connection with the Company’s Phase 3 ENLIGHTEN 1 trial failing to meet its primary endpoint, in May 2024, the Company engaged a commercial real estate broker to market the Company’s three leased properties for sublease arrangements. Based upon these impairment indicators, the Company has performed a recoverability test over its right-of-use asset and concluded that the right-of-use assets are impaired. As a result, the Company has recorded an impairment charge in the amount of $22.8 million during the second quarter of 2024, which is included as an impairment of right-of-use asset in the consolidated statements of operations and comprehensive loss for the year ended December 31, 2024. The Company reassessed the need for any further impairment as of December 31, 2024, and determined no additional impairment indicators existed. As of December 31, 2024, the Company has not sublet any of its leased properties.

Management conducted a fair value analysis of the Company's right-of-use assets using a discounted cash flow methodology as of May 15, 2024, which included the following range of assumptions:

Discount rate	9.5-10.5%
Term (years)	2.96-9.13
Expected sublease rent increases		3.0	%