Balance Sheet Details

6 Months Ended

Jun. 30, 2021

Organization Consolidation And Presentation Of Financial Statements [Abstract]

Balance Sheet Account Details

4.  Balance Sheet Details

Restricted Cash

Restricted cash as of June 30, 2021 and December 31, 2020 consisted of a $40,000 security deposit for the Company’s corporate purchasing credit card.

Inventory, Net

Inventory, net consisted of the following (in thousands):

	June 30,		December 31,
	2021		2020
Raw materials	$	802	$	802
Work-in-process		3,636		3,213
Finished goods		1,043		1,998
Total inventory, net	$	5,481	$	6,013

As of June 30, 2021 and December 31, 2020, inventory, net included zero and $0.9 million, respectively, of the fair value step-up adjustment to Tetraphase’s inventory recorded in connection with the acquisition of Tetraphase (see Note 11). As of June 30, 2021 and December 31, 2020, total inventory is recorded net of inventory reserves of $1.2 million and $0.9 million, respectively.

Prepaid Expenses and Other Current Assets

Prepaid expenses and other current assets consisted of the following (in thousands):

	June 30,		December 31,
	2021		2020
Refundable withholding tax	$	3,375	$	-
Prepaid manufacturing costs		491		930
Prepaid clinical costs		265		820
Prepaid insurance		263		505
Other prepaid expenses and current assets		807		1,133
Total prepaid expenses and other current assets	$	5,201	$	3,388

Property and Equipment, Net

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

	June 30,			December 31,
	2021			2020
Furniture and fixtures	$	313		$	309
Computer hardware		310			310
Software		203			733
Total property and equipment, gross		826			1,352
Accumulated depreciation and amortization		(663	)		(1,137	)
Total property and equipment, net	$	163		$	215

Intangible Assets, Net

Intangible assets, net consisted of the following (in thousands):

	Useful Life	June 30,			December 31,
	(years)	2021			2020
Technology	10	$	14,000		$	14,000
Trade name	10		1,520			1,520
Total intangible assets, gross			15,520			15,520
Accumulated amortization			(1,423	)		(647	)
Total intangible assets, net		$	14,097		$	14,873

The intangible assets were recorded in connection with the acquisition of Tetraphase (see Note 11). The Company recorded amortization expense of $0.4 million and $0.8 million for the three and six months ended June 30, 2021, respectively. The Company recorded no amortization expense for the six months ended June 30, 2020.

Accrued Expenses

Accrued expenses consisted of the following (in thousands):

	June 30,		December 31,
	2021		2020
Accrued interest expense on deferred royalty obligation, current portion	$	4,227	$	3,567
Deferred revenue		3,037		188
Accrued royalties and in-license fees		1,235		685
Accrued manufacturing costs		1,469		627
Accrued professional fees		942		660
Accrued other		1,265		767
Total accrued expenses	$	12,175	$	6,494

Other Noncurrent Liabilities

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

	June 30,		December 31,
	2021		2020
Paycheck Protection Program loan	$	2,313	$	2,302
Fair value of contingent value rights (see Note 11)		2,180		1,810
Total other noncurrent liabilities	$	4,493	$	4,112

On April 22, 2020, Tetraphase entered into a promissory note for $2.3 million under the Paycheck Protection Program (the “PPP Loan”). The interest rate on the PPP Loan is 1.0% per annum. The PPP Loan is unsecured and guaranteed by the U.S. Small Business Administration. The principal amount of the PPP Loan may be forgiven under the Paycheck Protection Program, subject to certain requirements and to the extent that the PPP Loan proceeds are used to pay permitted expenses, including certain payroll, rent and utility payments. The Company applied for forgiveness of the PPP Loan. The Company will be obligated to make monthly payments of principal and interest with respect to any unforgiven portion of the PPP Loan. The obligation to repay the PPP Loan may be accelerated upon the occurrence of an event of default.