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COMMITMENTS AND CONTINGENCIES | 3 Months Ended
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Mar. 31, 2026
Commitments and Contingencies Disclosure [Abstract] |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES Litigation The Company is subject to various legal matters and claims in the ordinary course of business. Although the results of legal proceedings and claims cannot be predicted with certainty, in the opinion of management, there are currently no such known matters that will have a material effect on the financial condition, results of operations or cash flows of the Company. Servier Program Purchase Agreement On April 9, 2021, the Company entered into a program purchase agreement (the “Program Purchase Agreement”) with Les Laboratoires Servier and Institut de Recherches Internationales Servier (collectively, “Servier”), pursuant to which the Company reacquired all of its global development and commercialization rights previously granted to Servier pursuant to the Development and Commercial License Agreement by and between Servier and the Company, dated February 24, 2016, as amended (the “Servier Agreement”), and mutually terminated the Servier Agreement. The Program Purchase Agreement requires the Company to make certain payments to Servier based on the achievement of regulatory and commercial milestones for each product. Management assessed the likelihood of each of the regulatory and commercial milestones included in the Program Purchase Agreement in accordance with ASC 450, Contingencies. If the assessment of a contingency indicates that it is probable that the milestone will be achieved and the amount of the liability can be estimated, then the estimated liability would be accrued in the Company’s condensed financial statements. Accordingly, contingent liabilities of $10.0 million related to the Program Purchase Agreement are accrued and included in contract liabilities in the condensed balance sheets as of March 31, 2026 and December 31, 2025. Leases The Company has an operating lease for real estate in North Carolina and does not have any finance leases. The elements of lease expense were as follows:
| For the Three Months Ended March 31,
(in thousands) | 2026 |  | 2025
Lease Cost |  |  |
Operating lease cost | $ | 482 |  |  | $ | 482 |
Short-term lease cost | 198 |  |  | 195 |
Variable lease cost | 104 |  |  | 97 |
Sublease income | (110) |  |  | — |
Total Lease Cost | $ | 674 |  |  | $ | 774 |
Other Information |  |  |
Operating cash flows used for operating leases | 499 |  |  | 484 |
Operating Leases |  |  |
Weighted-average remaining lease term (in years) | 3.3 |  | 4.3
Operating Leases |  |  |
Weighted-average discount rate | 9.2 | % |  | 9.2 | %
Future minimum lease payments under non-cancelable operating leases with terms of greater than one year as of March 31, 2026, were as follows:
(in thousands) | Amount
2026 (remainder of year) | $ | 1,520 |
2027 | 2,078 |
2028 | 2,140 |
2029 | 1,269 |
Total lease payments | $ | 7,007 |
Less: imputed interest | 960 |
Total operating lease liabilities | $ | 6,047 |
Supply Agreements The Company enters into contracts in the normal course of business with contract manufacturing organizations (“CMOs”) for the manufacture of clinical trial materials and contract research organizations (“CROs”) for clinical trial services. These agreements provide for termination at the request of either party with less than one-year’s notice and are, therefore, cancellable contracts. If canceled, these agreements are not anticipated to have a material effect on the financial condition, results of operations, or cash flows of the Company. Compensatory Arrangements of Certain Officers On August 26, 2025, the Company entered into amended and restated employment agreements to help retain each of its executive officers: Michael Amoroso, the Company’s President and Chief Executive Officer; Alex Kelly, the Company’s Chief Financial Officer; Dario Scimeca, the Company’s General Counsel and Secretary; and Jeff Smith, the Company’s Chief Research Officer. The employment agreements are substantively similar to their prior employment agreements, except that they reflect such executive’s current annual base salary and target bonus amounts; provide for the payment of existing cash severance in a lump sum; include provisions regarding termination without cause in connection with a “change in control” or a “restructuring event” (each as defined in the respective employment agreements); and provide for a payment to cover potential additional expenses. The amended employment agreements also include a requirement to fund the cash severance and expenses in an escrow account. As a result, the Company entered into escrow arrangements with JPMorgan Chase Bank, N.A. and the executives with respect to the funded amounts. Interest earned from the escrow account accrues to the Company and any unused funds return to the Company. As of March 31, 2026, the escrow account cash balance was $3.8 million.

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