Balance Sheet Components

6 Months Ended

Jun. 30, 2025

Note 5. Balance Sheet Components

Prepaid Expenses and Other Current Assets

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


	June 30, 2025		December 31, 2024
Prepaid research and development expenses	$	1,063	$	1,300
Short-term Italian research and development refundable tax credit		992		882
Prepaid insurance		206		629
Prepaid expenses		321		357
Other current assets		55		84
Total prepaid expenses and other current assets	$	2,637	$	3,252

The Company is eligible to obtain an R&D tax credit as companies in Italy that invest in eligible research and development activities, regardless of the legal form and economic sector in which they operate, can benefit from a R&D tax credit. Such tax credits can only be used to offset payments of certain taxes and contributions (e.g., social contributions, VAT payables, registration fees, income and withholding taxes and other tax-related items that companies usually pay monthly). The Company recognized reductions to R&D expense of $0.6 million and $0.9 million for the three and six months ended June 30, 2025, and reductions of $0.4 million and $0.8 million for the three and six months ended June 30, 2024, respectively.

Other Assets

Other assets consisted of the following (in thousands):


	June 30, 2025		December 31, 2024
Long-term Italian research and development refundable tax credit	$	4,884	$	4,053
VAT receivable		6,257		5,453
Equity investments in Lighthouse Pharmaceuticals, Inc.		78		78
Total other assets	$	11,219	$	9,584

Property and Equipment, Net

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


	June 30, 2025			December 31, 2024
Computer equipment	$	65		$	55
Computer software		32			28
Lab equipment		988			635
Leasehold improvement		38			34
Office furniture		227			202
Less: accumulated amortization and depreciation		(777	)		(639	)
Property and equipment, net	$	573		$	315

Accrued Expenses and Other Current Liabilities

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


	June 30, 2025		December 31, 2024
Personnel expenses	$	2,240	$	2,482
Research and development expenses		2,530		1,029
Professional fees		646		460
Current portion of operating lease liabilities		112		96
Other		180		308
Total accrued expenses and other current liabilities	$	5,708	$	4,375

For the six months ended June 30, 2025 and 2024, the severance accrual activity was as follows (in thousands):


	June 30, 2025			June 30, 2024
Beginning accrued severance		—			341
Incurred during the period		413			—
Severance paid during the period		(168	)		(251	)
Ending accrued severance	$	245		$	90

During the six months ended June 30, 2025 and 2024, the Company incurred severance costs related to personnel separation, reflecting payments made and accrued to departing employees.