Balance Sheet Components

12 Months Ended

Dec. 31, 2023

Balance Sheet Components

Balance Sheet Components

6. Balance Sheet Components

Inventory

Inventory at December 31, 2023 and 2022 consisted of the following:

	December 31,		December 31,
	2023		2022
(in thousands)
Raw material	$	2,057	$	2,101
Work in process		6,517		3,599
Finished goods		615		1,324
Inventory	$	9,189	$	7,024

Prelaunch Inventory

Costs capitalized for the Company’s lyophilized drug amounting to $2.8 million and $2.1 million as of December 31, 2023, and 2022 are included in the prepayments and other assets account. The Company’s
proof-of-concept (“POC”) data is expected to be completed by the end of 2024. Upon approval, the prelaunch inventory shall be reclassified as part of the Company’s inventory.

Property and Equipment, net

Property and equipment at December 31, 2023 and 2022 consisted of the following:

	December 31,		December 31,
	2023		2022
(in thousands)
Land	$	396	$	396
Lab equipment		477		477
Software		63		63
Furniture and fixtures		18		18
Computers and peripherals		7		7
Total property and equipment at cost		961		961
Accumulated depreciation		(465)		(404)
Property and equipment, net	$	496	$	557

Depreciation and amortization expense was $61,000 and $171,000 for the years ended December 31, 2023 and 2022, respectively.

Intangible assets, net

Intangible assets, net of amortization, at December 31, 2023 and 2022 consisted of the following:

	December 31,		December 31,
	2023		2022
(in thousands)
Developed technology	$	25,000	$	25,000
Accumulated developed technology amortization		(10,694)		(9,028)
Developed technology, net		14,306		15,972
In-process research and development		4,800		4,800
In process research and development, net		4,800		4,800
Trademarks		300		300
Accumulated trademark amortization		(128)		(108)
Trademarks, net		172		192
Internal use software costs - registry		1,236		1,236
Accumulated internal use software costs impairment		(371)		—
Accumulated internal use software costs amortization		(370)		(122)
Internal use software costs - registry, net		495		1,114
Patents		361		361
Accumulated patents amortization		(18)		—
Patents, net		343		361
Total intangible assets, net	$	20,116	$	22,439

Amortization expense of finite-lived intangible assets was $2.0 million and $1.8 million for the years ended December 31, 2023 and 2022, respectively.

During 2023, the Company experienced lower-than-anticipated sales growth for Canalevia and Neonorm, its two primary animal health products. This triggered a reevaluation of the carrying value of the entire asset group associated with these products. Based on the evaluation, the Company determined that the internal use software costs - registry carrying value of $866,000, was no longer recoverable. For the year ended December 31, 2023, The Company wrote the internal use software costs – registry down to its estimated fair value of $495,000 and recognized an impairment loss on intangible asset of $371,000. No assets were determined to be impaired as at December 31, 2022.

The following table summarizes the Company’s estimated future amortization expense of intangible assets with finite lives as of December 31, 2023:

(in thousands)	Amounts
2024	$	1,952
2025		1,952
2026		1,952
2027		1,952
2028		1,952
Thereafter		5,556
	$	15,316

Accrued Liabilities

Accrued liabilities at December 31, 2023 and 2022 consisted of the following:

	December 31,		December 31,
(in thousands)	2023		2022
Accrued interest	$	719	$	5,489
Accrued vacation		377		310
Accrued payroll and commission		208		263
Accrued audit and tax services		162		575
Accrued local tax		122		9
Accrued legal costs		117		36
Accrued chargebacks and discounts		68		—
Accrued payroll tax		8		1
Accrued other		2,017		1,482
Total	$	3,798	$	8,165

Other accrued liabilities as of December 31, 2023 and 2022 largely consist of consultancy fees, contract fees and scientific advisory board fees.