BALANCE SHEET COMPONENTS

6 Months Ended

Jun. 30, 2024

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):

	June 30,		December 31,
	2024		2023
Prepaid research and development	$	4,810	$	375
Prepaid expenses		1,296		1,168
Other current assets		452		250
Total prepaid expenses and other current assets	$	6,558	$	1,793

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 July 31, 2024, 35 individuals, or 69% 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 estimates that it will incur costs (in consideration of releases) of approximately $5.6 million, which are primarily one-time severance benefits. Approximately $2.6 million of these costs were incurred in the second quarter of 2024, and the remaining are expected to be incurred in the third and fourth quarter of 2024.

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

	June 30,		December 31,
	2024		2023
Accrued research and development	$	9,034	$	9,363
Accrued payroll and other employee benefits		2,663		4,368
Other		669		1,090
Total accrued and other current liabilities	$	12,366	$	14,821