Note 4 - Balance Sheet Components

9 Months Ended

Sep. 30, 2022

Notes to Financial Statements

Supplemental Balance Sheet Disclosures [Text Block]

NOTE 4.  Balance Sheet Components

(a) Cash, Cash Equivalents and Investments

Cash, cash equivalents and investments consisted of the following (in thousands):

	Amortized		Gross Unrealized					Estimated		Cash and Cash		Short-Term		Long-Term
	Cost		Gains		Losses			Fair Value		Equivalents		Investments		Investments
September 30, 2022
Cash at banks	$	19,895	$	—	$	—		$	19,895	$	19,895	$	—	$	—
Money market funds		30,873		—		—			30,873		30,873		—		—
U.S. Treasury securities		49,841		—		(452	)		49,389		—		49,389		—
Commercial paper		8,959		—		—			8,959		—		8,959		—
Corporate debt securities		5,716		—		(65	)		5,651		—		5,651		—
Total	$	115,284	$	—	$	(517	)	$	114,767	$	50,768	$	63,999	$	—

	Amortized		Gross Unrealized					Estimated		Cash and Cash		Short-Term		Long-Term
	Cost		Gains		Losses			Fair Value		Equivalents		Investments		Investments
December 31, 2021
Cash at banks	$	72,767	$	—	$	—		$	72,767	$	72,767	$	—	$	—
Money market funds		70,978		—		—			70,978		70,978		—		—
U.S. Treasury securities		25,055		—		(58	)		24,997		—		12,022		12,975
Commercial paper		7,491		—		—			7,491		—		7,491		—
Corporate debt securities		6,480		—		(16	)		6,464		—		3,229		3,235
Total	$	182,771	$	—	$	(74	)	$	182,697	$	143,745	$	22,742	$	16,210

(b) Accounts Receivable 

Accounts receivable comprises royalties receivable of nil and $71,000 as of September 30, 2022 and December 31, 2021, respectively. The Company has provided no allowance for uncollectible accounts as of  September 30, 2022 and December 31, 2021.

(c) Property and Equipment, Net

Property and equipment, net consists of the following (in thousands):

	September 30, 2022			December 31, 2021
Laboratory equipment	$	7,465		$	5,057
Office and computer equipment		767			481
Leasehold improvements		1,063			1,063
Construction in progress		5,596			1,305
Total property and equipment		14,891			7,906
Less: accumulated depreciation		(2,611	)		(1,305	)
Property and equipment, net	$	12,280		$	6,601

Depreciation expense was $489,000 and $211,000 for the three months ended September 30, 2022 and 2021, respectively, and $1.3 million and $406,000 for the nine months ended September 30, 2022 and 2021, respectively. There were no impairments of the Company’s property and equipment recorded in the nine months ended September 30, 2022 or 2021.

(d) Right-of-Use Assets, Net

Right-of-use assets, net comprises facilities of $26.6 million and $13.2 million as of September 30, 2022 and December 31, 2021, respectively.

(e) Intangible Assets, Net

Intangible assets comprise developed technology and intellectual property. Intangible assets are carried at cost less accumulated amortization. Amortization is computed using the straight-line method over useful lives ranging from 1.3 to 11.75 years for developed technology and 20 years for intellectual property. As of September 30, 2022, developed technology and intellectual property had remaining lives of 7.1 and 5.25 years, respectively. Intangible assets consist of the following (in thousands):

	September 30, 2022			December 31, 2021
Developed technology	$	10,600		$	10,600
Intellectual property		80			80
Total cost		10,680			10,680
Less: accumulated amortization		(1,069	)		(56	)
Intangible assets, net	$	9,611		$	10,624

Total amortization expense for the three months ended September 30, 2022 and 2021, was $338,000 and $433,000, respectively, and $1.0 million and $1.3 million for the nine months ended September 30, 2022 and 2021, respectively. As of September 30, 2022, the estimated future amortization expense by year is as follows (in thousands):

Year Ending December 31,	Amount
2022 (three months remaining)	$	338
2023		1,350
2024		1,350
2025		1,350
2026		1,350
Thereafter		3,873
Total	$	9,611

(f) Goodwill

Goodwill, which represents the excess of the purchase price over the fair value of assets acquired, comprises $4.5 million as of September 30, 2022 and December 31, 2021. As of September 30, 2022, there have been no indicators of impairment.

(g) Other Accrued Liabilities

Other accrued liabilities consist of the following (in thousands):

	September 30, 2022		December 31, 2021
Accrued compensation	$	3,809	$	2,786
Accrued clinical and manufacturing expenses		1,203		986
Accrued professional and consulting services		715		556
Accrued litigation settlement		2,000		—
Other liabilities, current portion		2,617		736
Total	$	10,344	$	5,064