Discontinued Operations

6 Months Ended

Jun. 30, 2024

Discontinued Operations and Disposal Groups [Abstract]

4. Discontinued Operations

On May 11, 2023, the Company entered into the Asset Purchase Agreement with Tisento for Tisento’s acquisition of substantially all of the assets comprising the Company’s zagociguat and CY3018 programs, in exchange for consideration at closing of $8.0 million, the reimbursement of employee expenses or R&D expenses of $2.4 million that Tisento reimbursed the Company for upon closing, and 10% of the issued and outstanding shares of Tisento Parent (Note 5). Upon closing of the transaction, the Company transferred certain fully depreciated software included within property and equipment to Tisento.

The operations of the Transferred Assets are presented as discontinued for all periods presented. The transaction closed on July 28, 2023.

The following table presents the results of the discontinued operations for the three and six months ended June 30, 2024 and 2023 (in thousands):


	Three Months Ended June 30,					Six Months Ended June 30,
	2024		2023			2024		2023
Cost and expenses:
Research and development	$	—	$	547		$	—	$	3,748
General and administrative		—		1,831			—		2,397
Total cost and expenses		—		2,378			—		6,145
Loss from operations		—		(2,378	)		—		(6,145	)
Gain on disposal of discontinued operations		—		—			—		—
Net loss from discontinued operations	$	—	$	(2,378	)	$	—	$	(6,145	)

The following table presents the significant non-cash item for the discontinued operations that are included in the accompanying consolidated statements of cash flows (in thousands):


	Three Months Ended June 30,				Six Months Ended June 30,
	2024		2023		2024		2023
Cash flows from operating activities:
Share-based compensation expense	$	—	$	259	$	—	$	505