Note 4 - Balance Sheet Components

9 Months Ended

Sep. 30, 2024

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
	Cost		Gains		Losses		Fair Value		Equivalents		Investments
September 30, 2024
Cash at banks	$	3,477	$	—	$	—	$	3,477	$	3,477	$	—
Money market funds		18,558		—		—		18,558		18,558		—
U.S. Treasury securities		33,997		22		—		34,019		—		34,019
Commercial paper		2,652		5		—		2,657		—		2,657
Total	$	58,684	$	27	$	—	$	58,711	$	22,035	$	36,676

	Amortized		Gross Unrealized					Estimated		Cash and Cash		Short-Term
	Cost		Gains		Losses			Fair Value		Equivalents		Investments
December 31, 2023
Cash at banks	$	3,352	$	—	$	—		$	3,352	$	3,352	$	—
Money market funds		31,403		—		—			31,403		31,403		—
U.S. Treasury securities		4,959		—		(1	)		4,958		—		4,958
Total	$	39,714	$	—	$	(1	)	$	39,713	$	34,755	$	4,958

As of September 30, 2024 and December 31, 2023, all investments were available-for-sale debt securities with remaining maturities of 12 months or less.

(b) Accounts Receivable

Accounts receivable consists of $0.55 million of government contract receivables from HHS BARDA, and $40,000 royalty receivable totaling $0.59 million as of September 30, 2024 and a total of $3.0 million of accounts receivable for royalties as of December 31, 2023. For further information on HHS BARDA receivables, see Note 5.

An allowance for expected credit losses over the life of the receivables is reserved for based on a combination of historical experience, aging analysis, current economic trends and information on specific accounts, with related amounts recorded as a reserve against revenue recognized.  The reserve is re-evaluated on a regular basis and adjusted as needed. Once a receivable is deemed to be uncollectible, such balance is charged against the reserve. The Company has provided no allowance for credit losses as of September 30, 2024 and December 31, 2023.

(c) Unbilled Receivable from Government Contracts

Unbilled receivable, which was earned and not yet billed, consists of government contracts from HHS BARDA of $3.1 million and zero as of September 30, 2024 and December 31, 2023, respectively, as detailed in Note 5.

(d) Prepaid Expenses and Other Current Assets

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

	September 30, 2024		December 31, 2023
Prepaid clinical and manufacturing expenses	$	1,637	$	984
Prepaid insurance		488		258
Prepaid rent		517		488
Other prepaid		988		752
Other current assets		439		333
Prepaid expenses and other current assets	$	4,069	$	2,815

(e) Property and Equipment, Net

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

	September 30, 2024			December 31, 2023
Laboratory equipment	$	13,714		$	13,448
Office and computer equipment		1,120			1,105
Leasehold improvements		4,089			3,985
Construction in progress		141			24
Total property and equipment		19,064			18,562
Less: accumulated depreciation		(9,588	)		(6,831	)
Property and equipment, net	$	9,476		$	11,731

Depreciation expense was $1.0 million for each of the three months ended September 30, 2024 and 2023, and $2.8 million for each of the nine months ended September 30, 2024 and 2023. There were no impairments of the Company’s property and equipment recorded in the three and nine months ended September 30, 2024 or 2023.

(f) Prepaid Clinical Services, Long-Term

Prepaid clinical services, long-term were $60.1 million and zero as of September 30, 2024 and December 31, 2023, respectively. The long-term prepaid clinical services represent amounts the Company has paid to clinical research organizations that will be utilized in over one year.

(g) Right-of-Use Assets, Net

Right-of-use assets, net are comprised of facilities of $21.5 million and $24.8 million as of September 30, 2024 and December 31, 2023, respectively. The right-of-use of additional leased premises in California commenced in 2023, resulting in an additional $3.1 million right-of-use assets recorded in the year ended December 31, 2023.

(h) Intangible Assets, Net

Intangible assets are comprised of developed technology and intellectual property. Intangible assets are carried at cost less accumulated amortization. As of September 30, 2024, developed technology and intellectual property had remaining lives of 5.1 years and 3.3 years, respectively. As of September 30, 2024, there have been no indicators of impairment. Intangible assets consist of the following (in thousands):

	September 30, 2024			December 31, 2023
Developed technology	$	5,000		$	5,000
Intellectual property		80			80
Total cost		5,080			5,080
Less: accumulated amortization		(1,340	)		(791	)
Intangible assets, net	$	3,740		$	4,289

Intangible asset amortization expense was $0.1 million and $0.2 million for the three months ended September 30, 2024 and 2023, respectively, and $0.5 million for each of the nine months ended September 30, 2024 and 2023.

As of September 30, 2024, the estimated future amortization expense by year is as follows (in thousands):

Year Ending December 31,	Amount
2024 (three months remaining)	$	182
2025		732
2026		731
2027		731
2028		727
Thereafter		637
Total	$	3,740

(i) Goodwill

Goodwill, which represents the excess of the purchase price over the fair value of assets acquired, was $4.5 million as of both  September 30, 2024 and December 31, 2023. As of September 30, 2024, there have been no indicators of impairment.

(j) Deferred Government Revenue

Deferred government revenue represents amounts received from HHS BARDA contracts where the earnings process is not yet complete. The Company will recognize deferred government revenue once the earnings process is complete. Deferred government revenue was $65.4 million and zero as of September 30, 2024 and December 31 2023, respectively. 

(k) Other Accrued Current Liabilities

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

	September 30, 2024		December 31, 2023
Accrued compensation	$	4,511	$	4,576
Accrued clinical and manufacturing expenses		1,309		312
Accrued professional and consulting services		371		211
Other liabilities, current portion		573		535
Total	$	6,764	$	5,634