Note 4 - Balance Sheet Components

3 Months Ended

Mar. 31, 2023

Notes to Financial Statements

Supplemental Balance Sheet Disclosures [Text Block]

NOTE 4.  Balance Sheet Components

(a) Cash, Cash Equivalents, Restricted Cash and Investments

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

	Amortized		Gross Unrealized					Estimated		Cash and Cash Equivalents		Short-Term		Long-Term
	Cost		Gains		Losses			Fair Value		and Restricted Cash		Investments		Investments
March 31, 2023
Cash at banks	$	10,255	$	—	$	—		$	10,255	$	10,255	$	—	$	—
Money market funds		38,179		—		—			38,179		38,179		—		—
U.S. Treasury securities		21,448		—		(69	)		21,379		—		21,379		—
Commercial paper		999		—		—			999		—		999		—
Corporate debt securities		1,000		—		(1	)		999		—		999		—
Total	$	71,881	$	—	$	(70	)	$	71,811	$	48,434	$	23,377	$	—

	Amortized		Gross Unrealized					Estimated		Cash and Cash Equivalents		Short-Term		Long-Term
	Cost		Gains		Losses			Fair Value		and Restricted Cash		Investments		Investments
December 31, 2022
Cash at banks	$	15,179	$	—	$	—		$	15,179	$	15,179	$	—	$	—
Money market funds		30,834		—		—			30,834		30,834		—		—
U.S. Treasury securities		41,812		—		(270	)		41,542		—		41,542		—
Commercial paper		2,488		—		—			2,488		—		2,488		—
Corporate debt securities		5,703		—		(29	)		5,674		—		5,674		—
Total	$	96,016	$	—	$	(299	)	$	95,717	$	46,013	$	49,704	$	—

Cash and cash equivalents and restricted cash of $48.4 million as of March 31, 2023 and $46.0 million as of December 31, 2022, includes restricted cash of $1.6 million and $2.0 million, respectively.

(b) Property and Equipment, Net

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

	March 31, 2023			December 31, 2022
Laboratory equipment	$	13,512		$	12,035
Office and computer equipment		1,057			1,078
Leasehold improvements		3,494			1,760
Construction in progress		476			3,984
Total property and equipment		18,539			18,857
Less: accumulated depreciation		(4,166	)		(3,272	)
Property and equipment, net	$	14,373		$	15,585

Depreciation expense was $894,000 and $370,000 for the three months ended March 31, 2023 and 2022, respectively. There were no material impairments of the Company’s property and equipment recorded in the three months ended March 31, 2023 or 2022, respectively.

(c) Right-of-Use Assets, Net

Right-of-use assets, net comprises facilities of $27.8 million and $25.7 million as of March 31, 2023 and December 31, 2022, respectively. In September 2021, the Company executed a lease for a facility in South San Francisco, California with an initial term expiring on March 31, 2029.  The lease has two separate components, one commenced in the third quarter of 2022 and the other the first quarter of 2023 resulting in an additional $15.0 million and $3.1 million, respectively, of right-of-use assets.

VAXART, INC.

Notes to the Condensed Consolidated Financial Statements (Unaudited)

(d) 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 life of 11.75 years for developed technology and 20 years for intellectual property. As of March 31, 2023, developed technology and intellectual property had remaining lives of 6.6 and 4.75 years, respectively. As of March 31, 2023, there have been no indicators of impairment. Intangible assets consist of the following (in thousands):

	March 31, 2023			December 31, 2022
Developed technology	$	5,000		$	5,000
Intellectual property		80			80
Total cost		5,080			5,080
Less: accumulated amortization		(243	)		(60	)
Intangible assets, net	$	4,837		$	5,020

Intangible asset amortization expense for the three months ended March 31, 2023 and 2022, was $183,000 and $338,000, respectively.

As of March 31, 2023, the estimated future amortization expense by year is as follows (in thousands):

Year Ending December 31,	Amount
2023 (nine months remaining)	$	548
2024		731
2025		731
2026		731
2027		731
Thereafter		1,365
Total	$	4,837

(e) Goodwill

Goodwill, which represents the excess of the purchase price over the fair value of assets acquired, comprises $4.5 million as of March 31, 2023 and December 31, 2022. As of March 31, 2023, there have been no indicators of impairment.

(f) Other Accrued Liabilities

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

	March 31, 2023		December 31, 2022
Accrued compensation	$	2,865	$	3,112
Accrued clinical and manufacturing expenses		1,497		2,413
Accrued professional and consulting services		524		691
Other liabilities, current portion		2,091		1,868
Total	$	6,977	$	8,084