Goodwill and Intangible Assets

12 Months Ended

Dec. 31, 2023

Goodwill and Intangible Assets Disclosure [Abstract]

In December 2017, the Company expanded its activities in the field of infectious diseases with the acquisition of Discuva Limited, a privately held United Kingdom-based company. Through this acquisition, the Company obtained a bacterial genetics platform and a suite of software-based technologies (the “Discuva Platform”), which facilitates the discovery and development of new mechanism antibiotics. This resulted in the recognition of goodwill of £1.5 million, which is translated into U.S. dollars at each reporting period.

The Company assesses goodwill for impairment on an annual basis as of December 31 or more frequently when events and circumstances occur indicating that recorded goodwill may be impaired.

As of December 31, 2023, the Company performed its annual impairment assessment of goodwill and determined that it is more likely than not that the fair value of the reporting unit exceeds its carrying amount. There have been no cumulative goodwill impairment charges recognized to date.

As of December 31, 2023 and 2022, goodwill was $1,893 and $1,798, respectively. Changes year over year are the result of changes in foreign currency.

Intangible Assets

Components of the Company’s acquired intangible assets are comprised of the following:


	December 31, 2023						December 31, 2022
	Gross		Accumulated amortization and impairment charges		Net		Gross		Accumulated amortization and impairment charges		Net
Utrophin program acquired(1)	$	—	$	—	$	—	$	4,015	$	(4,015)	$	—
Discuva platform acquired(2)	13,583		(13,583)		—		12,900		(12,900)		—
Option over non-financial asset	859		(859)		—		816		(816)		—
Other intangibles	140		(140)		—		133		(133)		—
	$	14,582	$	(14,582)	$	—	$	17,864	$	(17,864)	$	—

(1) During the year ended December 31, 2023, the Company dissolved the wholly-owned subsidiary, Muox Limited, a dormant entity. The Utrophin program intangible assets, which arose from the Muox Limited acquisition were fully impaired and have been removed from the Company’s accounting records.

(2) In conjunction with the significant change in the Company’s strategy and shift in focus to the therapeutic area of oncology, the Company determined that it would cease further investment in the Discuva Platform. Management concluded that the carrying amount of the acquired Discuva Platform intangible asset may not be recoverable and performed an assessment to calculate the fair value of the asset using a probability-weighted approach which was compared to the carrying value of the asset. An impairment charge of $8,468 which represented the carrying value of the Discuva Platform was recognized during the year ended December 31, 2022. This impairment charge is presented as impairment of intangible assets in the consolidated statements of operations and comprehensive loss.

Changes year over year in the gross and accumulation amortization amounts of intangible assets are the result of changes in foreign currency. Amortization expense was $0 and $914 for the years ended December 31, 2023 and 2022, respectively.