XML 19 R10.htm IDEA: XBRL DOCUMENT
v3.24.0.1

Consolidated Financial Statement Details | 12 Months Ended
--- | ---
Dec. 31, 2023
Inventory Disclosure [Abstract] |
Consolidated Financial Statement Details | Note 3 — Consolidated Financial Statement Details Inventory Inventory consists of the following (in thousands):
|  | December 31, |
|  | 2023 |  |  | 2022 |
Raw materials |  | $ | 1,861 |  |  | $ | 2,575 |
Work-in-process |  |  | 12,880 |  |  |  | 10,749 |
Finished goods |  |  | 1,360 |  |  |  | 5,878 |
Total inventory |  | $ | 16,101 |  |  | $ | 19,202 |
For the year ended December 31, 2023, we recorded a provision of $2.0 million for the net realizable value of our batches as an increase to cost of goods sold. Our manufacturing agreement with UCB Pharma (UCB) provides for a fixed price which we had negotiated in exchange for a higher royalty rate. Accordingly, when evaluating the net realizable value of our inventory for UCB, we include the negotiated increase of the royalties in our analysis, and the aggregate revenue has historically been greater than our manufacturing cost. Due to the decrease in the royalty rate for 2024 as a result of a settlement agreement with UCB, the aggregate revenue is expected to be less than our manufacturing cost, and therefore we recorded a provision for net realizable value. See Note 5 for additional information on the settlement agreement with UCB. During the three months ended September 30, 2023, we recorded a provision for inventory obsolescence of $3.7 million as an increase to cost of goods sold for certain batches produced in our Huntsville, Alabama manufacturing facility, as a result of our identification of a quality concern of a solvent obtained from a third party that was used in the manufacturing of these batches. In the three months ended December 31, 2023, based on further analysis and partner approval, we reversed the provision and recorded a $3.7 million benefit to cost of goods sold. Other Current Assets Other current assets consists of the following (in thousands):
|  | December 31, |
|  | 2023 |  |  | 2022 |
Prepaid research and development expenses |  | $ | 4,325 |  |  | $ | 7,398 |
Non-trade receivables and other |  |  | 1,047 |  |  |  | 2,423 |
Other prepaid expenses |  |  | 4,407 |  |  |  | 5,987 |
Total other current assets |  | $ | 9,779 |  |  | $ | 15,808 |
Property, Plant and Equipment Property, plant and equipment consists of the following (in thousands):
|  | December 31, |
|  | 2023 |  |  | 2022 |
Building and leasehold improvements |  | $ | 43,184 |  |  | $ | 74,889 |
Laboratory equipment |  |  | 14,537 |  |  |  | 24,243 |
Computer equipment and software |  |  | 22,438 |  |  |  | 26,205 |
Manufacturing equipment |  |  | 24,315 |  |  |  | 25,052 |
Furniture, fixtures, and other |  |  | 541 |  |  |  | 4,263 |
Depreciable property, plant and equipment at cost |  |  | 105,015 |  |  |  | 154,652 |
Less: accumulated depreciation |  |  | (86,898 | ) |  |  | (124,731 | )
Depreciable property, plant and equipment, net |  |  | 18,117 |  |  |  | 29,921 |
Construction-in-progress |  |  | 739 |  |  |  | 2,530 |
Property, plant and equipment, net |  | $ | 18,856 |  |  | $ | 32,451 |
Laboratory and manufacturing equipment, including construction-in-process, include assets that support both our manufacturing and research and development activities. As a result of the sustained decrease in the fair value of our single reporting unit during the three months ended March 31, 2023, plans to sublease all of our laboratory and office space, and the weakening sublease markets, we recorded non-cash impairment charges of $4.8 million for property, plant and equipment for the year-ended December 31, 2023, which we report in restructuring, impairment and costs of terminated program in our Consolidated Statement of Operations. See Note 8 for additional information. Depreciation and amortization expense for property, plant and equipment for the years ended December 31, 2023, 2022, and 2021 was $7.0 million, $12.2 million, and $13.0 million, respectively. Goodwill The following is a reconciliation of the change in our goodwill for the year ended December 31, 2023 (in thousands):
|  | Year Ended December 31, 2023 |
Goodwill – beginning balance |  | $ | 76,501 |
Impairment of goodwill |  |  | (76,501 | )
Goodwill – ending balance |  | $ | — |
As a result of the decrease in the fair value of our single reporting unit during the three months ended March 31, 2023, we recorded a non-cash goodwill impairment charge of $76.5 million, which we report as impairment of goodwill in our Consolidated Statement of Operations. We had previously recognized goodwill primarily from our acquisitions of Shearwater Corp. and Aerogen, Inc. in 2001 and 2005, respectively. See Note 9 for additional information. Accrued Expenses Accrued expenses consist of the following (in thousands):
|  | December 31, |
|  | 2023 |  |  | 2022 |
Accrued compensation |  | $ | 5,553 |  |  | $ | 9,582 |
Accrued clinical trial expenses |  |  | 4,321 |  |  |  | 12,262 |
Liability to collaboration partners |  |  | 2,678 |  |  |  | 3,808 |
Accrued contract termination costs |  |  | 3,020 |  |  |  | 3,902 |
Other accrued expenses |  |  | 6,590 |  |  |  | 7,003 |
Total accrued expenses |  | $ | 22,162 |  |  | $ | 36,557 |
Accumulated Other Comprehensive Income (Loss) The following table summarizes the changes in accumulated other comprehensive income (loss) by component (in thousands):
|  | Foreign currency translation |  |  | Available-for-sale securities |  |  | Accumulated Other Comprehensive Income |
Balance at December 31, 2022 |  | $ | (5,131 | ) |  | $ | (1,776 | ) |  | $ | (6,907 | )
Foreign currency translation gain |  |  | 62 |  |  |  | — |  |  |  | 62 |
Unrealized gain on available-for-sale securities |  |  | — |  |  |  | 1,826 |  |  |  | 1,826 |
Reclassification adjustments to income |  |  | 5,099 |  |  |  | — |  |  |  | 5,099 |
Balance at December 31, 2023 |  | $ | 30 |  |  | $ | 50 |  |  | $ | 80 |
The reclassification from accumulated other comprehensive loss relates to the closure of the operations of our foreign subsidiaries and has been included within other income (expense), net in our Consolidated Statement of Operations for the year ended December 31, 2023.

X
- References No definition available. + Details
Name: | us-gaap_InventoryDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for inventory. Includes, but is not limited to, the basis of stating inventory, the method of determining inventory cost, the classes of inventory, and the nature of the cost elements included in inventory. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 330 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//330/tableOfContent + Details
Name: | us-gaap_InventoryDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration