Impairment of Right of Use Assets |
9 Months Ended | ||||||||||||||||||||
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Sep. 30, 2024 | |||||||||||||||||||||
| Asset Impairment Charges [Abstract] | |||||||||||||||||||||
| Impairment of Right of Use Assets | 6. Impairment of Right-of-Use Assets In connection with the Company’s Phase 3 ENLIGHTEN 1 trial failing to meet its primary endpoint, in May 2024, the Company engaged a commercial real estate broker to market the Company’s three leased properties for sublease arrangements. As of September 30, 2024, the Company has not sublet any of its leased properties. Based upon these impairment indicators, the Company has performed a recoverability test over its right-of-use asset and concluded the right-of-use assets are impaired. As a result, the Company has recorded an impairment charge in the amount of $22.8 million, which is included as an impairment of right-of-use asset in the condensed consolidated statements of operations and comprehensive loss for the three and nine months ended September 30, 2024. The right-of-use asset was valued as of May 15, 2024. The Company reassessed the need for any further impairment as of September 30, 2024, and determined no additional impairment indicators existed. The Company engaged a valuation specialist to perform a fair value determination of the right-of-use assets using a discounted cash flow methodology, which included the following range of assumptions:
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