Note 4 - Balance Sheet Components

9 Months Ended

Sep. 30, 2025

Notes to Financial Statements

Supplemental Balance Sheet Disclosures [Text Block]

NOTE 4.  Balance Sheet Components

(a) Cash, Cash Equivalents and Short-Term 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, 2025
Cash at banks	$	3,521	$	—	$	—		$	3,521	$	3,521	$	—
Money market funds		5,727		—		—			5,727		5,727		—
U.S. Treasury securities		16,894		—		(2	)		16,892		4,979		11,913
Commercial paper		2,653		—		—			2,653		2,653		—
Total	$	28,795	$	—	$	(2	)	$	28,793	$	16,880	$	11,913

	Amortized		Gross Unrealized					Estimated		Cash and Cash		Short-Term
	Cost		Gains		Losses			Fair Value		Equivalents		Investments
December 31, 2024
Cash at banks	$	8,740	$	—	$	—		$	8,740	$	8,740	$	—
Money market funds		16,489		—		—			16,489		16,489		—
U.S. Treasury securities		23,802		7		(4	)		23,805		—		23,805
Commercial paper		2,688		1		—			2,689		—		2,689
Total	$	51,719	$	8	$	(4	)	$	51,723	$	25,229	$	26,494

As of September 30, 2025 and December 31, 2024, all investments were available-for-sale debt securities with remaining maturities of 12 months or less. As of  September 30, 2025 and  December 31, 2024, the Company held 9 and 5 securities, respectively, in an unrealized loss position for 12 months or less. Interest receivable as of September 30, 2025 and December 31, 2024, was $0.1 million and $0.2 million, respectively, and is recorded as a component of prepaid expenses and other current assets on the condensed consolidated balance sheets.

At each reporting date, the Company performs an evaluation of impairment to determine if any unrealized losses are due to credit-related factors. The Company records an allowance for credit losses when unrealized losses are due to credit-related factors. Factors considered when evaluating available-for-sale investments for impairment include the severity of the impairment, changes in underlying credit ratings, the financial condition of the issuer, the probability that the scheduled cash payments will continue to be made and the Company’s intent and ability to hold the investment until recovery of the amortized cost basis. The Company has the ability, if necessary, to liquidate any of its cash equivalents and marketable securities to meet its liquidity needs.

As of  September 30, 2025 and December 31, 2024, there were no material declines in the market value of the Company’s available-for-sale investments due to credit-related factors. The Company does not intend to sell the investments, and it is not more likely than not that the Company will be required to sell the investments before recovery of their amortized cost basis. As of  September 30, 2025 and December 31, 2024, no allowance for credit losses was recorded and the Company did not recognize any impairment losses related to investments.

(b) Accounts Receivable

As of  September 30, 2025, accounts receivable consists of $42.7 million government contract receivable from 2024 ATI-RRPV Contract. As of  December 31, 2024, accounts receivable balance of $5.7 million consisted of $2.7 million of government contract receivables from HHS BARDA and $3.0 million royalty receivable. See Note 5.

The Company has provided no allowance for credit losses as of  September 30, 2025 and December 31, 2024 based on historical collection experience, customer credit worthiness, the age of accounts receivable balances, regulatory changes and current economic conditions and trends that  may affect a customer’s ability to pay.

(c) Unbilled Receivable from Government Contracts

Unbilled receivable, which was earned and not yet billed, consists of government contracts from HHS BARDA of $43.2 million and $6.2 million as of September 30, 2025 and December 31, 2024, 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, 2025		December 31, 2024
Prepaid clinical and manufacturing expenses	$	750	$	1,998
Prepaid insurance		394		282
Prepaid rent		539		521
Other prepaid		861		1,449
Other current assets		88		318
Prepaid expenses and other current assets	$	2,632	$	4,568

As of September 30, 2025 there was a significant concentration by one contract research organization (“CRO”), which represented 24% of the Company’s total prepaid expenses balance. As of  December 31, 2024, there was a significant concentration by one CRO, which represented 28% of the Company’s total prepaid expenses balance.

(e) Property and Equipment, Net

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

	September 30, 2025			December 31, 2024
Laboratory equipment	$	13,897		$	13,806
Office and computer equipment		1,142			1,140
Leasehold improvements		4,000			4,107
Construction in progress		11			160
Total property and equipment		19,050			19,213
Less: accumulated depreciation		(12,986	)		(10,508	)
Property and equipment, net	$	6,064		$	8,705

Depreciation expense was $0.9 million and $1.0 million for the three months ended  September 30, 2025 and 2024, respectively, and $2.7 million and $2.8 million, respectively, for the nine months ended September 30, 2025 and 2024. There were no impairments of the Company’s property and equipment recorded in the three and nine months ended September 30, 2025 and 2024.

(f) Prepaid Clinical Services, Long-Term

Prepaid clinical services, long-term was $60.1 million as of September 30, 2025 and  December 31, 2024. The long-term prepaid clinical services represent amounts the Company has paid to a single CRO that will be utilized beyond one year.

(g) Right-of-Use Assets, Net

Right-of-use assets, net comprises facilities of $17.1 million and $20.4 million as of September 30, 2025 and December 31, 2024, respectively. 

(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, 2025, developed technology and intellectual property had remaining lives of 4.1 years and 2.3 years, respectively. As of September 30, 2025, there have been no indicators of impairment.

Intangible assets consist of the following (in thousands):

	September 30, 2025			December 31, 2024
Developed technology	$	5,000		$	5,000
Intellectual property		80			80
Total cost		5,080			5,080
Less: accumulated amortization		(2,071	)		(1,523	)
Intangible assets, net	$	3,009		$	3,557

Intangible asset amortization expense was $0.1 million for each of the three months ended September 30, 2025 and 2024, and $0.5 million for each of the nine months ended September 30, 2025 and 2024.

As of September 30, 2025, the estimated future amortization expense by year is as follows (in thousands):

Year Ending December 31,	Amount
2025 (three months remaining)	$	184
2026		731
2027		731
2028		727
2029		636
Total	$	3,009

(i) Goodwill

Goodwill, which represents the excess of the purchase price over the fair value of assets acquired, was $4.5 million as of  September 30, 2025 and December 31, 2024. As of September 30, 2025, there have been no indicators of impairment.

(j) Accounts Payable

Accounts payable were $53.1 million and $7.0 million as of September 30, 2025 and December 31, 2024, respectively. As of September 30, 2025, there was a significant concentration by one CRO, which represented 86% of the Company’s total accounts payable balance. As of  December 31, 2024, there was a significant concentration by one CRO, which represented 67% of the Company’s total accounts payable balance.

(k) 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, in accordance with its revenue recognition policies.

The following table represents the Company’s deferred government revenue during the nine months ended September 30, 2025 (in thousands):

	September 30, 2025
Balance at December 31, 2024	$	65,400
Revenue recognized		(753	)
Amounts collected or invoiced		181
Balance at September 30, 2025	$	64,828

The Company recognized $0.7 million and zero revenue during the three months ended  September 30, 2025 and 2024, respectively, and $0.8 million and zero revenue during the nine months ended September 30, 2025 and 2024, respectively. Amounts collected or invoiced during the nine months ended September 30, 2025, primarily relate to amounts received on the 2024 ATI-RRPV Contract (as defined in Note 5), but for which revenue cannot yet be recognized due to contractual milestones not being achieved.

(l) Other Accrued Current Liabilities

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

	September 30, 2025		December 31, 2024
Accrued compensation	$	3,643	$	5,087
Accrued clinical and manufacturing expenses		40,216		5,134
Accrued professional and consulting services		561		623
Other liabilities, current portion		462		534
Total	$	44,882	$	11,378

As of September 30, 2025 and December 31, 2024, there was a significant concentration by one CRO, which represented 80% and 42% of the Company’s total other accrued liabilities balances, respectively.