BALANCE SHEET COMPONENTS

3 Months Ended

Mar. 31, 2025

BALANCE SHEET COMPONENTS

BALANCE SHEET COMPONENTS

(4) BALANCE SHEET COMPONENTS

Prepaid Expenses and Other Current Assets

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

	March 31,		December 31,
	2025		2024
Other current assets	$	845	$	845
Prepaid expenses		318		649
Total prepaid expenses and other current assets	$	1,163	$	1,494

Accrued and Other Current Liabilities

In June 2024, following the Company’s decision to halt further development of AV-101, the Company announced its plan to terminate nearly all of its workforce in the coming months (the “Workforce Reduction Plan”). As of March 31, 2025, 47 individuals, or approximately 92% of the Company’s workforce, have been terminated. The affected individuals have been and will be provided severance benefits, including cash severance payments. Each affected individual’s eligibility for severance benefits is contingent upon entering into a separation agreement, which includes a general release of claims against the Company. In connection with the Workforce Reduction Plan, the Company incurred costs (in consideration of releases) of an aggregate of approximately $6.5 million since the second quarter of 2024, which are primarily one-time severance benefits. The Company has paid an aggregate of approximately $4.9 million of severance benefits since the second quarter of 2024, and liabilities associated with the Workforce Reduction Plan were approximately $1.6 million as of March 31, 2025. The Company expects that all remaining liabilities will be paid in the second quarter of 2025 in connection with Closing.

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

	March 31,		December 31,
	2025		2024
Accrued payroll and other employee benefits		1,607		2,868
Other		429		319
Total accrued and other current liabilities	$	2,036	$	3,187