Balance Sheet Components (Tables)

3 Months Ended

Mar. 31, 2022

Balance Sheet Components [Abstract]

Schedule of Prepaid Expenses and Other Current Assets

Prepaid expenses and other current assets consist of the following (in thousands):

	March 31,		December 31,
	2022		2021
Prepaid expenses	$	352	$	333
Prepaid insurance		385		1,144
Prepaid research and development expenses		2,047		1,899
Australia research and development refundable tax credit		1,558		1,128
Other current assets		487		367
Total prepaid expenses and other current assets	$	4,829	$	4,871

Cortexyme Australia, Pty, Ltd is eligible to obtain a cash refund from the Australian Taxation Office for eligible R&D expenditures under the Australian R&D Tax Incentive Program (the “Australian Tax Incentive”). The Australian Tax Incentive is recognized as a reduction to R&D expense when there is reasonable assurance that the relevant expenditure has been incurred, the amount can be reliably measured and the Australian Tax Incentive will be received. The Company recognized reductions to R&D expense of $1.1 million for the year ended December 31, 2021 and an additional $0.4 million for the three months ended March 31, 2022.

Schedule of Property and Equipment, Net

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

	March 31			December 31
	2022			2021
Computer equipment	$	52		$	53
Lab equipment		528			528
Finance lease right of use assets		557			557
Leasehold improvement		63			58
Office furniture		26			26
Less: accumulated amortization and depreciation		(996	)		(959	)
Property and equipment, net	$	230		$	263

Schedule of Accrued Expenses and Other Current Liabilities

Accrued expenses and other current liabilities consist of the following (in thousands):

	March 31,		December 31,
	2022		2021
Personnel expenses	$	1,213	$	820
Severance expense		261		—
Professional fees		600		462
Research and development expenses		3,485		7,108
Current portion of operating lease liabilities		299		741
Other		121		180
Total accrued expenses and other current liabilities	$	5,979	$	9,311

In response to the reprioritization of the Company's pipeline following the clinical hold on atuzaginstat (COR388) IND application, on February 2, 2022, the Board of Directors of the Company (the “Board”) approved a cost reduction program to rationalize operations and allow continued support for the needs of the business. Under the cost reduction program, the Company is reducing headcount by approximately 53% through a reduction in workforce. A majority of this reduction in force took place by March 31, 2022, and is expected that the remainder will be completed by July 2022. To be eligible for the severance payments, employees must remain with the company through their communicated severance date. The Company is recognizing the severance and related expenses over the requisite employment obligation period.

The total amount expected to be incurred as of the quarter ended March 31, 2022, in connection with the one-time termination benefits from the cost reduction program, is approximately $1.9 million. The total severance cost incurred for three months ended March 31, 2022 is $1.7 million, $0.9 million of which was recorded in research and development expense and $0.8 million was recorded in general and administrative expense within the Condensed Consolidated Statements of Operations and Comprehensive Loss. There were no severance costs for the three months ended March 31, 2021.

	March 31,
	2022
Beginning accrued severance	$	-
Incurred during the period		1,687
Severance paid during the period		(1,426	)
Ending accrued severance	$	261

Summary of Accrued Severance

	March 31,
	2022
Beginning accrued severance	$	-
Incurred during the period		1,687
Severance paid during the period		(1,426	)
Ending accrued severance	$	261