Discontinued Operations

12 Months Ended

Dec. 31, 2024

Discontinued Operations and Disposal Groups [Abstract]

4. Discontinued Operations

On May 11, 2023, the Company entered into the Purchase Agreement with Tisento for Tisento’s acquisition of substantially all of the assets comprising the Company’s zagociguat and CY3018 programs, in exchange for consideration at closing of $8.0 million, the reimbursement of employee expenses or R&D expenses of $2.4 million that Tisento reimbursed the Company for upon closing, and 10% of the issued and outstanding shares of Tisento Parent (Note 5). Upon closing of the transaction, the Company transferred certain fully depreciated software included within property and equipment to Tisento.

The carrying value of the disposal group was lower than its fair value, less costs to sell, and accordingly, a gain on disposal was recorded during the year ended December 31, 2023. The operations of the Transferred Assets are presented as discontinued for all periods presented. The transaction closed on July 28, 2023.

The following table presents the results of the discontinued operations for the year ended December 31, 2023 (in thousands):



	Year Ended December 31, 2023
Revenues:
Revenue from grants	$	50
Total revenues		50
Cost and expenses:
Research and development		4,439
General and administrative		4,033
Total cost and expenses		8,472
Loss from operations		(8,422	)
Gain on disposal of discontinued operations		15,752
Net gain from discontinued operations	$	7,330

The following table presents the significant non-cash item for the discontinued operations that are included in the accompanying consolidated statements of cash flows (in thousands):

The transaction consideration received from the sale of the Transferred Assets were as follows (in thousands):


	Amount
Closing payment	$	8,000
Expense reimbursement		2,402
Investment in Tisento Parent		5,350
Gross transaction consideration from the sale		15,752
Net assets sold		—
Gain on disposal of discontinued operations	$	15,752

During the year ended December 31, 2023, the Company incurred $1.3 million in closing costs associated with the sale of the Transferred Assets. The Company also incurred $0.9 million in transaction costs associated with the sale of the Transferred Assets during the year ended December 31, 2023, respectively. All of the closing and transaction costs were recognized as part of discontinued operations - general and administrative.

Year Ended December 31, 2023

Cash flows from operating activities:

Share-based compensation expense