Restatement of Previously Issued Financial Statements

12 Months Ended

Dec. 31, 2024

Accounting Changes and Error Corrections [Abstract]

Restatement of Previously Issued Financial Statements

The Company has restated herein its audited consolidated financial statements for the year ended December 31, 2023 in accordance with Accounting Standards Codification (“ASC”) Topic 250, Accounting Changes and Error Corrections. In March 2025, the Company discovered that there were errors in its lease accounting related to tenant improvement allowances in connection with an operating lease agreement for a building in North Carolina, which the Company entered into in January 2021 and subsequently subleased in October 2021 (the operating lease agreement and sublease agreements, with their respective amendments, collectively, the “NC Leases”). The Company inappropriately omitted accounting for available tenant improvement allowance that resulted in a misstatement of its operating lease right-of-use asset and related lease liability. Additionally, the Company did not account for tenant improvement allowances that were conveyed to the subtenant, resulting in an overstatement of sublease income. The tables below reflect the adjustments related to this restatement, the amounts of which are included with reference (a).

The Company has also restated interim period financial statements for the first, second and third quarters of 2024 and 2023 as a result of these errors. See Note 14 Quarterly Financial Information (Unaudited) for additional information on the restated interim financial statements for the first, second, and third quarters of 2024 and 2023.

As part of this restatement, the Company has corrected certain other immaterial errors. While these other errors are quantitatively and qualitatively immaterial, individually and in the aggregate, because the Company is restating its consolidated financial statements for material errors, the Company has corrected other immaterial errors as well. These adjustments are described in more detail in references (b) and (c) and elsewhere in the section titled “Other Adjustments” below.

Other Adjustments

The adjustments to correct other errors that are quantitatively and qualitatively immaterial, individually and in the aggregate are as follows:

(b)The Company had previously recorded an out of period adjustment related to research and development expenses in the first quarter of 2023 that was the result of not recording a severance accrual of $0.2 million in 2022.

(c)The Company had previously understated its right-of-use assets and lease liability by $0.3 million related to its facilities in Redwood City, California at each balance sheet in 2024 and 2023.

The Company also identified certain errors as a result of imprecise calculations related to its research and development tax credits that should have been corrected in the consolidated financial statements for the year ended December 31, 2023. Such amounts are deemed immaterial to the Company’s income tax provision for the years ended December 31, 2024 and 2023.

The remainder of the notes to the Company’s financial statements have been restated, as applicable, to reflect the impacts from the restatement discussed above.

Impact of the Restatement

The following tables represent the restated amounts in the Consolidated Balance Sheet, Statement of Operations and Comprehensive Loss, and Statement of Cash Flows for the year ended December 31, 2023 (in thousands, except per share data).

The amounts as previously reported for fiscal year 2023 were derived from the Annual Report on Form 10-K for the fiscal year ended December 31, 2023, filed on March 18, 2024 and the amounts previously reported for the unaudited condensed consolidated quarterly financial information for the quarterly periods in the years ended December 31, 2023 and 2024 were derived from the Company’s Quarterly Reports on Form 10-Q for the quarterly periods within those years (the “Previously Reported Amounts”). The Previously Reported Amounts are labeled as “As Reported” in the tables below. The amounts labeled “Adjustment” represent the effects of this restatement described above.

The cumulative effect of the error on periods prior to 2023 was $11.3 million which is included in the beginning balance of the accumulated deficit of the restated Consolidated Balance Sheet for the year ended December 31, 2023.

Consolidated Balance Sheet


	As of December 31, 2023
	As Previously Reported		Adjustment		Reference	As Restated
Assets
Current assets:
Cash and cash equivalents	$	75,000	$	—		$	75,000
Short-term investments	21,526		—			21,526
Prepaid expenses and other current assets	6,247					6,247
Total current assets	102,773		—			102,773
Operating lease right-of-use assets	52,266		(17,242)		(a) (c)	35,024
Property and equipment, net	14,764		—			14,764
Restricted cash	1,976		—			1,976
Deposit and other long-term assets	1,231					1,231
Total assets	$	173,010	$	(17,242)		$	155,768
Liabilities and stockholders’ equity
Current liabilities:
Accounts payable	$	1,921	$	—		$	1,921
Accrued expenses and other current liabilities	12,584		—			12,584

Lease liability, current portion	10,409		(4,933)		(a)	5,476
Total current liabilities	24,914		(4,933)			19,981
Long-term liabilities:

Lease liability, net of current portion	64,627		3,938		(a) (c)	68,565
Total liabilities	89,541		(995)			88,546
Commitments and contingencies
Stockholders’ equity:
Preferred stock, $0.0001 par value, 5,000 shares authorized; no shares issued and outstanding	—		—			—
Common stock, $0.0001 par value, 300,000 shares authorized at December 31, 2023: 10,143 shares issued and outstanding at December 31, 2023	1		—			1
Additional paid-in capital	1,003,718		—			1,003,718
Accumulated other comprehensive loss	(473)		—			(473)
Accumulated deficit	(919,777)		(16,247)		(a) (b)	(936,024)
Total stockholders’ equity	83,469		(16,247)			67,222
Total liabilities and stockholders’ equity	$	173,010	$	(17,242)		$	155,768

Consolidated Statement of Operations and Comprehensive Loss


	Year ended December 31, 2023
	As Previously Reported		Adjustment		Reference	As Restated
License revenue	$	3,600	$	—		$	3,600
Operating expenses:
Research and development	77,676		(190)		(b)	77,486
General and administrative	49,915		5,141		(a)	55,056
Total operating expenses	127,591		4,951			132,542
Operating loss	(123,991)		(4,951)			(128,942)

Other income, net	5,748		—			5,748
Net loss before income taxes	(118,243)		(4,951)			(123,194)
Income tax benefit	1,078		—			1,078
Net loss	$	(117,165)	$	(4,951)		$	(122,116)
Other comprehensive gain:
Net unrealized gain on marketable securities	1,057		—			1,057
Foreign currency translation adjustment	1		—			1
Comprehensive loss	$	(116,107)	$	(4,951)		$	(121,058)
Net loss per share - basic and diluted	$	(11.62)	$	—		$	(12.11)
Weighted-average common shares outstanding - basic and diluted	10,082		—			10,082

Consolidated Statement of Cash Flows


	Year ended December 31, 2023
	As Previously Reported		Adjustment		Reference	As Restated
Cash flows from operating activities:
Net loss	$	(117,165)	$	(4,951)	(a) (b)	$	(122,116)
Adjustments to reconcile net loss to net cash used in operating activities:



Non-cash lease expense	13,027		5,230		(a)	18,257
Non-cash sublease income	—		(89)			(89)


Changes in operating assets and liabilities:



Accrued expenses and other liabilities	(5,206)		(190)		(b)	(5,396)





















Supplemental schedule of noncash information

Remeasurement of operating lease right-of-use assets and liabilities	$	13,711	$	(6,079)	(a) (c)	$	7,632

There was no impact on net cash used in operating activities or within any line items within investing and financing activities.