Subsequent Events

12 Months Ended

Dec. 31, 2019

Subsequent Events [Abstract]

Subsequent Events

21. Subsequent Events

Collaboration Agreement with Novartis

In January 2020, Novartis did not purchase and exercise its single remaining Option under the Collaboration Agreement and, as a result, the option purchase period expired (see Note 8). Accordingly, there are no Options remaining eligible for purchase and exercise, and the Company’s performance obligations under the Collaboration Arrangement have ended. The maximum aggregate amount of potential option purchase, option exercise and milestone payments that the Company is currently entitled to receive under the Collaboration Agreement was reduced from $745,000 at December 31, 2019 to $525,000 in January 2020. The Company will remove all costs associated with its remaining performance obligation for the single remaining Option from the cost-to-cost model in the first quarter of 2020. This will result in the Company recognizing the remaining deferred revenue of $38,592 to collaboration revenue - related party in the first quarter of 2020. This represents a non-recognized subsequent event as the Novartis decision was in their control and was not known to the Company as of December 31, 2019.

Sublease Agreement with EQRx

In May 2018, the Company executed an amendment to lease an additional 33,526 square feet at 50 Hampshire Street in Cambridge, Massachusetts, with a 10-year term. On the lease commencement date of January 1, 2020, the Company recorded the impact on its consolidated balance sheet, which increased the Company’s operating lease right-of-use-assets and operating lease liabilities by 15,003. The Company also entered into a sublease agreement with EQRx to sublease the entire space. The term of the sublease agreement commenced in January 2020 and ends on the last day of the 36th calendar month following commencement. The annual rent for the subleased premises is greater than the annual rent owed by the Company to the landlord for the leased premises.  

Strategic Restructuring

The U.S. Food and Drug Administration cleared the applications for the Company’s antibody candidates, SRF617 and SRF388, and the Company is executing on plans to initiate clinical trials to advance both programs in 2020. The Company concurrently announced a strategic restructuring in January 2020, which will reduce the Company’s workforce by approximately 35%. As a result, the Company will incur severance costs of $1,272 in the first quarter 2020, which will be recorded within operating expenses in the consolidated statements of operations and comprehensive loss.