Balance Sheet Details

12 Months Ended

Dec. 31, 2023

Balance Sheet Related Disclosures [Abstract]

Cash Equivalents

Cash equivalents consisted of the following (in thousands):


	December 31, 2023				December 31, 2022
	Adjusted Cost		Estimated Fair Value		Adjusted Cost		Estimated Fair Value
Money market funds(1)	$	56,374	$	56,374	$	77,309	$	77,309

(1) Money market funds are classified in cash and cash equivalents on our consolidated balance sheets. Average contractual maturities (in days) is not applicable.

As of December 31, 2023, the total cash and cash equivalents balance of $65.1 million consisted of money market funds of $56.4 million and cash of $8.7 million held with major financial institutions. As of December 31, 2022, the total cash and cash equivalents balance of $114.0 million consisted of money market funds of $77.3 million and cash of $36.7 million held with major financial institutions.

Inventories

Inventories consisted of the following (in thousands):


	December 31,
	2023		2022
Raw materials	$	108	$	108
Work in process	7		91
Finished goods	2,570		1,830
Total inventories	$	2,685	$	2,029

Prepaid expenses and other current assets

As of December 31, 2023, prepaid expenses and other current assets consists of prepaid expenses of $4.6 million and other current assets of $0.6 million. As of December 31, 2022, prepaid expenses and other current assets consists of prepaid expenses of $4.8 million and other current assets of $0.7 million.

Property and Equipment, net

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


	December 31,
	2023		2022
Laboratory equipment(1)	$	37,216	$	39,679
Leasehold improvements	11,912		16,633
Computer equipment and software	2,565		3,039
Office equipment and furniture	1,469		1,345
Construction in progress(2)	1,636		1,739
Property and equipment	54,798		62,435
Less: accumulated depreciation and amortization	(39,311)		(39,821)
Property and equipment, net	$	15,487	$	22,614

(1) Fully depreciated property and equipment with a cost of $3.0 million and $1.5 million were retired during the years ended December 31, 2023 and 2022, respectively.

(2) Construction in progress includes equipment received but not yet placed into service pending installation.

In July 2023, we announced our plan to consolidate operations from our San Carlos facility to our headquarters in Redwood City. As part of this plan, we entered into agreements to sell certain laboratory equipment located in our San Carlos facility through an asset auction and as part of the lease assignment of the San Carlos Space to Vaxcyte (see further discussion at Note 13, “Commitments and Contingencies”). These certain items of laboratory equipment met the assets held for sale criteria and were sold during the fourth quarter of 2023. Using a fair value estimate based of Level 3 inputs in the fair value hierarchy, the Company determined that the carrying value of these assets exceeds fair value less costs to sell, which resulted in a write-down of $1.5 million, presented within the asset impairment and other charges line item in the consolidated statements of operations in the year ended December 31, 2023.

During the year ended December 31, 2023, the Company recorded a non-cash impairment charge of $4.7 million associated with the San Carlos facility leasehold improvements. For additional information, see Note 13, “Commitments and Contingencies.”

Depreciation expense included in both research and development expenses and selling, general and administrative expenses in the consolidated statements of operations was as follows (in thousands):


	Year Ended December 31,
	2023		2022		2021
Depreciation expense	$	5,518	$	5,402	$	3,113

Goodwill


	December 31,
	2023		2022
Goodwill at beginning of period	$	3,241	$	3,241
Impairment	(778)		—
Goodwill at end of period	$	2,463	$	3,241

Goodwill was previously allocated to each of the Company's reporting units. In July 2023, we announced a restructuring of our business and that we are discontinuing investment in certain development programs, primarily in Novel Biotherapeutics. As a result of this plan, the Company determined that a triggering event had occurred that required an interim goodwill impairment test during the third quarter of 2023. The fair value estimate used in the interim goodwill impairment test was primarily based on Level 3 inputs in the fair value hierarchy. Based on the results of the impairment evaluation, the Company determined that the goodwill within the Novel Biotherapeutics reporting unit was impaired, which resulted in a non-cash impairment charge of $0.8 million to write off all of the associated goodwill. The impairment charge is recorded within the asset impairment and other charges in the condensed consolidated statements of operation in the year ended December 31, 2023. Goodwill had a carrying value of $2.5 million and $3.2 million as of December 31, 2023 and 2022, respectively.

Other Accrued Liabilities

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


	December 31,
	2023		2022
Accrued professional and outside service fees	$	2,330	$	3,495
Accrued purchases	1,402		10,852
Other	1,003		932
Total other accrued liabilities	$	4,735	$	15,279