PREPAID AND OTHER CURRENT ASSETS

9 Months Ended

Sep. 30, 2024

Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]

The following table reflects prepaid and other current assets as of September 30, 2024 and December 31, 2023 (in thousands):


	September 30, 2024		December 31, 2023
Prepaid assets and deposits	$	7,526	$	11,973
Other current assets	319		299

Total prepaid and other current assets	$	7,845	$	12,272

In August 2018, the Company entered into a Convertible Secured Note Purchase Agreement (the “Note Agreement”) with NES Therapeutic, Inc. (“NES”), pursuant to which it purchased a Convertible Secured Promissory Note (the “NES Note”). The Company’s investment in the NES Note, which is included in other current assets, is accounted for as a loan receivable and is valued at amortized cost. As of both September 30, 2024 and December 31, 2023, the Company recorded a $3.5 million credit loss reserve on its investment based on its evaluation of the probability of default that exists at NES. The credit loss reserve recorded in each period represents the entire aggregate principal amount and outstanding interest incurred on the NES Note as of both September 30, 2024 and December 31, 2023.

The NES Note was amended on August 2, 2024, August 16, 2024 and August 31, 2024 to extend the maturity date of the Note Agreement, with no modifications to any other terms of the Note Agreement. The NES Note was further amended on September 15, 2024 (the “Fourth Amendment to the Note Agreement”) to mature on May 16, 2025. The Fourth Amendment to the Note Agreement also provided the Company the ability to elect whether to convert its shares if certain events, as described in the Fourth Amendment to the Note Agreement, occur prior to May 16, 2025. The amendments to the NES Note is not expected to have a material impact to the Condensed Consolidated Financial Statements.