2024 Q4 Form 10-Q Financial Statement

#000143774924033944 Filed on November 07, 2024

View on sec.gov

Income Statement

Concept 2024 Q4 2024 Q3 2023 Q3
Revenue $0.00 $0.00
YoY Change
Cost Of Revenue
YoY Change
Gross Profit
YoY Change
Gross Profit Margin
Selling, General & Admin $12.95M $4.280M
YoY Change 202.5% 51.83%
% of Gross Profit
Research & Development $17.68M $23.60M
YoY Change -25.11% 27.4%
% of Gross Profit
Depreciation & Amortization $228.0K $273.0K
YoY Change -16.48% 50.83%
% of Gross Profit
Operating Expenses $30.62M $27.88M
YoY Change 9.84% 30.61%
Operating Profit -$30.62M -$27.88M
YoY Change 9.84% 30.61%
Interest Expense $2.618M $2.005M
YoY Change 30.57% 128.36%
% of Operating Profit
Other Income/Expense, Net $62.00K $223.0K
YoY Change -72.2% 6.19%
Pretax Income -$27.94M -$25.65M
YoY Change 8.94% 26.62%
Income Tax $0.00 $0.00
% Of Pretax Income
Net Earnings -$27.94M -$25.65M
YoY Change 8.94% 26.63%
Net Earnings / Revenue
Basic Earnings Per Share -$0.58 -$0.61
Diluted Earnings Per Share -$0.58 -$0.61
COMMON SHARES
Basic Shares Outstanding 48.11M 47.98M 41.97M
Diluted Shares Outstanding 47.98M 42.00M

Balance Sheet

Concept 2024 Q4 2024 Q3 2023 Q3
SHORT-TERM ASSETS
Cash & Short-Term Investments $149.0M $142.4M
YoY Change 4.62% -18.47%
Cash & Equivalents $149.0M $142.4M
Short-Term Investments
Other Short-Term Assets $192.0K $189.0K
YoY Change 1.59% -97.8%
Inventory
Prepaid Expenses
Receivables $1.275M $1.300M
Other Receivables $0.00 $0.00
Total Short-Term Assets $202.5M $150.2M
YoY Change 34.87% -18.05%
LONG-TERM ASSETS
Property, Plant & Equipment $21.14M $22.08M
YoY Change -4.27% -4.55%
Goodwill
YoY Change
Intangibles $69.00K $268.0K
YoY Change -74.25% -63.78%
Long-Term Investments
YoY Change
Other Assets
YoY Change
Total Long-Term Assets $21.20M $22.35M
YoY Change -5.11% -6.95%
TOTAL ASSETS
Total Short-Term Assets $202.5M $150.2M
Total Long-Term Assets $21.20M $22.35M
Total Assets $223.8M $172.5M
YoY Change 29.69% -16.77%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $52.24M $9.500M
YoY Change 449.94% 168.82%
Accrued Expenses $4.493M $7.500M
YoY Change -40.09% 83.11%
Deferred Revenue
YoY Change
Short-Term Debt $0.00 $0.00
YoY Change
Long-Term Debt Due
YoY Change
Total Short-Term Liabilities $57.03M $17.41M
YoY Change 227.52% 109.61%
LONG-TERM LIABILITIES
Long-Term Debt $0.00 $0.00
YoY Change
Other Long-Term Liabilities $80.00K $0.00
YoY Change -100.0%
Total Long-Term Liabilities $80.00K $0.00
YoY Change -100.0%
TOTAL LIABILITIES
Total Short-Term Liabilities $57.03M $17.41M
Total Long-Term Liabilities $80.00K $0.00
Total Liabilities $57.11M $17.41M
YoY Change 227.98% 103.27%
SHAREHOLDERS EQUITY
Retained Earnings -$377.5M -$359.9M
YoY Change 4.89% 36.12%
Common Stock $48.00K $42.00K
YoY Change 14.29% 5.0%
Preferred Stock
YoY Change
Treasury Stock (at cost)
YoY Change
Treasury Stock Shares
Shareholders Equity $166.6M $155.1M
YoY Change
Total Liabilities & Shareholders Equity $223.8M $172.5M
YoY Change 29.69% -16.77%

Cashflow Statement

Concept 2024 Q4 2024 Q3 2023 Q3
OPERATING ACTIVITIES
Net Income -$27.94M -$25.65M
YoY Change 8.94% 26.63%
Depreciation, Depletion And Amortization $228.0K $273.0K
YoY Change -16.48% 50.83%
Cash From Operating Activities -$18.30M -$26.50M
YoY Change -30.96% 22.97%
INVESTING ACTIVITIES
Capital Expenditures $17.00K $0.00
YoY Change -100.0%
Acquisitions
YoY Change
Other Investing Activities
YoY Change
Cash From Investing Activities -$17.00K $0.00
YoY Change -100.0%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities 0.000 400.0K
YoY Change -100.0% 194.12%
NET CHANGE
Cash From Operating Activities -18.30M -26.50M
Cash From Investing Activities -17.00K 0.000
Cash From Financing Activities 0.000 400.0K
Net Change In Cash -18.31M -26.10M
YoY Change -29.84% 15.64%
FREE CASH FLOW
Cash From Operating Activities -$18.30M -$26.50M
Capital Expenditures $17.00K $0.00
Free Cash Flow -$18.31M -$26.50M
YoY Change -30.89% 29.94%

Facts In Submission

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-46000 usd
us-gaap Net Cash Provided By Used In Investing Activities
NetCashProvidedByUsedInInvestingActivities
-373000 usd
us-gaap Proceeds From Warrant Exercises
ProceedsFromWarrantExercises
123552000 usd
us-gaap Proceeds From Warrant Exercises
ProceedsFromWarrantExercises
0 usd
us-gaap Proceeds From Stock Options Exercised
ProceedsFromStockOptionsExercised
0 usd
us-gaap Proceeds From Stock Options Exercised
ProceedsFromStockOptionsExercised
1417000 usd
us-gaap Net Cash Provided By Used In Financing Activities
NetCashProvidedByUsedInFinancingActivities
123552000 usd
us-gaap Net Cash Provided By Used In Financing Activities
NetCashProvidedByUsedInFinancingActivities
1417000 usd
us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents Period Increase Decrease Excluding Exchange Rate Effect
CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalentsPeriodIncreaseDecreaseExcludingExchangeRateEffect
67842000 usd
us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents Period Increase Decrease Excluding Exchange Rate Effect
CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalentsPeriodIncreaseDecreaseExcludingExchangeRateEffect
-58665000 usd
CY2023Q4 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents Including Disposal Group And Discontinued Operations
CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalentsIncludingDisposalGroupAndDiscontinuedOperations
121136000 usd
CY2022Q4 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents Including Disposal Group And Discontinued Operations
CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalentsIncludingDisposalGroupAndDiscontinuedOperations
201015000 usd
CY2024Q3 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents Including Disposal Group And Discontinued Operations
CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalentsIncludingDisposalGroupAndDiscontinuedOperations
188978000 usd
CY2023Q3 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents Including Disposal Group And Discontinued Operations
CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalentsIncludingDisposalGroupAndDiscontinuedOperations
142350000 usd
CY2024Q3 us-gaap Cash And Cash Equivalents At Carrying Value
CashAndCashEquivalentsAtCarryingValue
148978000 usd
CY2023Q3 us-gaap Cash And Cash Equivalents At Carrying Value
CashAndCashEquivalentsAtCarryingValue
142350000 usd
CY2024Q3 us-gaap Restricted Cash Current
RestrictedCashCurrent
40000000 usd
CY2023Q3 us-gaap Restricted Cash Current
RestrictedCashCurrent
0 usd
CY2024Q3 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents
CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents
188978000 usd
CY2023Q3 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents
CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents
142350000 usd
sava Issuance Of Warrants Resulting In Recognition Of Warrant Liabilities
IssuanceOfWarrantsResultingInRecognitionOfWarrantLiabilities
113363000 usd
sava Issuance Of Warrants Resulting In Recognition Of Warrant Liabilities
IssuanceOfWarrantsResultingInRecognitionOfWarrantLiabilities
0 usd
sava Derecognition Of Warrant Liabilities Through Exercises
DerecognitionOfWarrantLiabilitiesThroughExercises
-5180000 usd
sava Derecognition Of Warrant Liabilities Through Exercises
DerecognitionOfWarrantLiabilitiesThroughExercises
0 usd
CY2024Q3 us-gaap Retained Earnings Accumulated Deficit
RetainedEarningsAccumulatedDeficit
-377500000 usd
us-gaap Use Of Estimates
UseOfEstimates
<p style="font-family:Times New Roman;font-size:10pt;font-variant:normal;text-align:justify;margin:0pt;"><b><i>Use of Estimates</i></b></p> <p style="font-family:'Times New Roman';font-size:10pt;font-variant:normal;margin:0pt;"> </p> <p style="font-family:Times New Roman;font-size:10pt;font-variant:normal;text-align:justify;margin:0pt;text-indent:18pt;">The Company makes estimates and assumptions in preparing its condensed consolidated financial statements in conformity with GAAP. These estimates and assumptions affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements and the reported amount of revenue earned and expenses incurred during the reporting period. The Company evaluates its estimates on an ongoing basis, including those estimates related to common stock warrant liabilities, clinical trials and manufacturing agreements. Actual results could differ from these estimates and assumptions.</p> <p style="font-family:'Times New Roman';font-size:10pt;font-variant:normal;margin:0pt;"> </p>
CY2024Q1 sava Class Of Warrant Or Right Fair Value Of Common Stock Warrants Per Warrant
ClassOfWarrantOrRightFairValueOfCommonStockWarrantsPerWarrant
6.71
CY2024Q2 sava Class Of Warrant Or Right Redemption Price Per Share
ClassOfWarrantOrRightRedemptionPricePerShare
0.001
CY2024Q2 us-gaap Number Of Operating Segments
NumberOfOperatingSegments
1 pure
CY2024Q3 us-gaap Net Income Loss
NetIncomeLoss
-27943000 usd
CY2023Q3 us-gaap Net Income Loss
NetIncomeLoss
-25651000 usd
us-gaap Net Income Loss
NetIncomeLoss
3255000 usd
us-gaap Net Income Loss
NetIncomeLoss
-76298000 usd
CY2024Q3 us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
47976000
CY2023Q3 us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
42002000
us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
45734000
us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
41845000
CY2024Q3 us-gaap Earnings Per Share Basic
EarningsPerShareBasic
-0.58
CY2023Q3 us-gaap Earnings Per Share Basic
EarningsPerShareBasic
-0.61
us-gaap Earnings Per Share Basic
EarningsPerShareBasic
0.07
us-gaap Earnings Per Share Basic
EarningsPerShareBasic
-1.82
CY2024Q3 us-gaap Net Income Loss
NetIncomeLoss
-27943000 usd
CY2023Q3 us-gaap Net Income Loss
NetIncomeLoss
-25651000 usd
us-gaap Net Income Loss
NetIncomeLoss
3255000 usd
us-gaap Net Income Loss
NetIncomeLoss
-76298000 usd
CY2024Q3 us-gaap Dilutive Securities
DilutiveSecurities
0 usd
CY2023Q3 us-gaap Dilutive Securities
DilutiveSecurities
0 usd
us-gaap Dilutive Securities
DilutiveSecurities
-43793000 usd
us-gaap Dilutive Securities
DilutiveSecurities
0 usd
CY2024Q3 us-gaap Net Income Loss Available To Common Stockholders Diluted
NetIncomeLossAvailableToCommonStockholdersDiluted
-27943000 usd
CY2023Q3 us-gaap Net Income Loss Available To Common Stockholders Diluted
NetIncomeLossAvailableToCommonStockholdersDiluted
-25651000 usd
us-gaap Net Income Loss Available To Common Stockholders Diluted
NetIncomeLossAvailableToCommonStockholdersDiluted
-40538000 usd
us-gaap Net Income Loss Available To Common Stockholders Diluted
NetIncomeLossAvailableToCommonStockholdersDiluted
-76298000 usd
CY2024Q3 us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
47976000
CY2023Q3 us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
42002000
us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
45734000
us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
41845000
CY2024Q3 us-gaap Weighted Average Number Diluted Shares Outstanding Adjustment
WeightedAverageNumberDilutedSharesOutstandingAdjustment
0
CY2023Q3 us-gaap Weighted Average Number Diluted Shares Outstanding Adjustment
WeightedAverageNumberDilutedSharesOutstandingAdjustment
0
us-gaap Weighted Average Number Diluted Shares Outstanding Adjustment
WeightedAverageNumberDilutedSharesOutstandingAdjustment
367000
us-gaap Weighted Average Number Diluted Shares Outstanding Adjustment
WeightedAverageNumberDilutedSharesOutstandingAdjustment
0
CY2024Q3 us-gaap Weighted Average Number Of Diluted Shares Outstanding
WeightedAverageNumberOfDilutedSharesOutstanding
47976000
CY2023Q3 us-gaap Weighted Average Number Of Diluted Shares Outstanding
WeightedAverageNumberOfDilutedSharesOutstanding
42002000
us-gaap Weighted Average Number Of Diluted Shares Outstanding
WeightedAverageNumberOfDilutedSharesOutstanding
46101000
us-gaap Weighted Average Number Of Diluted Shares Outstanding
WeightedAverageNumberOfDilutedSharesOutstanding
41845000
CY2024Q3 us-gaap Earnings Per Share Diluted
EarningsPerShareDiluted
-0.58
CY2023Q3 us-gaap Earnings Per Share Diluted
EarningsPerShareDiluted
-0.61
us-gaap Earnings Per Share Diluted
EarningsPerShareDiluted
-0.88
us-gaap Earnings Per Share Diluted
EarningsPerShareDiluted
-1.82
CY2024Q3 us-gaap Proceeds From Insurance Settlement Operating Activities
ProceedsFromInsuranceSettlementOperatingActivities
1100000 usd
CY2023Q3 us-gaap Proceeds From Insurance Settlement Operating Activities
ProceedsFromInsuranceSettlementOperatingActivities
0 usd
us-gaap Proceeds From Insurance Settlement Operating Activities
ProceedsFromInsuranceSettlementOperatingActivities
9900000 usd
us-gaap Proceeds From Insurance Settlement Operating Activities
ProceedsFromInsuranceSettlementOperatingActivities
100000 usd
CY2024Q3 sava Insurance Settlements Maximum Recovery Limit
InsuranceSettlementsMaximumRecoveryLimit
10000000 usd
sava Prepaid Expenses And Other Current Assets Text Bock
PrepaidExpensesAndOtherCurrentAssetsTextBock
<p style="font-family:Times New Roman;font-size:10pt;font-variant:normal;text-align:justify;margin:0pt;"><b>Note <em style="font: inherit;">3.</em> Prepaid Expenses and Other Current Assets</b></p> <p style="font-family:'Times New Roman';font-size:10pt;font-variant:normal;margin:0pt;"> </p> <p style="font-family:Times New Roman;font-size:10pt;font-variant:normal;text-align:justify;margin:0pt;text-indent:18pt;">Prepaid expenses and other current assets at <em style="font: inherit;"> September 30, 2024</em> and <em style="font: inherit;"> December 31, 2023</em> consisted of the following (in thousands):</p> <p style="font-family:'Times New Roman';font-size:10pt;font-variant:normal;margin:0pt;"> </p> <table border="0" cellpadding="0" cellspacing="0" class="finTable" style="width: 100%; font-size: 10pt; font-family: Times New Roman; text-indent: 0px;"><tbody><tr style="background-color: rgb(255, 255, 255); vertical-align: bottom"><td style="font-family: Times New Roman; font-size: 10pt;"> </td><td style="font-family: Times New Roman; font-size: 10pt;"> </td><td colspan="2" style="text-align: center; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;"> <p style="font-family:Times New Roman;font-size:10pt;font-variant:normal;text-align:center;margin:0pt;"><b><em style="font: inherit;">September 30,</em></b></p> </td><td style="font-family: Times New Roman; font-size: 10pt;"> </td><td style="font-family: Times New Roman; font-size: 10pt;"> </td><td colspan="2" style="text-align: center; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;"> <p style="font-family:Times New Roman;font-size:10pt;font-variant:normal;text-align:center;margin:0pt;"><b><em style="font: inherit;">December 31,</em></b></p> </td><td style="font-family: Times New Roman; font-size: 10pt;"> </td></tr> <tr style="background-color: rgb(255, 255, 255); vertical-align: bottom"><td style="font-family: Times New Roman; font-size: 10pt;"> </td><td style="font-family: Times New Roman; font-size: 10pt;"> </td><td colspan="2" style="text-align: center; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"> <p style="font-family:Times New Roman;font-size:10pt;font-variant:normal;text-align:center;margin:0pt;"><b><em style="font: inherit;">2024</em></b></p> </td><td style="font-family: Times New Roman; font-size: 10pt; padding-bottom: 1px;"> </td><td style="font-family: Times New Roman; font-size: 10pt;"> </td><td colspan="2" style="text-align: center; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"> <p style="font-family:Times New Roman;font-size:10pt;font-variant:normal;text-align:center;margin:0pt;"><b><em style="font: inherit;">2023</em></b></p> </td><td style="font-family: Times New Roman; font-size: 10pt; padding-bottom: 1px;"> </td></tr> <tr style="background-color: rgb(204, 238, 255); vertical-align: bottom"><td style="font-family: Times New Roman; font-size: 10pt; width: 70%;"> <p style="font-family: Times New Roman; font-size: 10pt; font-variant: normal; margin: 0pt;">Prepaid insurance</p> </td><td style="width: 1%; font-family: Times New Roman; font-size: 10pt;"> </td><td style="width: 1%; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;">$</td><td style="width: 12%; text-align: right; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;">1,198</td><td style="width: 1%; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;"> </td><td style="width: 1%; font-family: Times New Roman; font-size: 10pt;"> </td><td style="width: 1%; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;">$</td><td style="width: 12%; text-align: right; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;">759</td><td style="width: 1%; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;"> </td></tr> <tr style="background-color: rgb(255, 255, 255); vertical-align: bottom"><td style="font-family: Times New Roman; font-size: 10pt;"> <p style="font-family: Times New Roman; font-size: 10pt; font-variant: normal; margin: 0pt;">Contract research organization and other deposits</p> </td><td style="width: 1%; font-family: Times New Roman; font-size: 10pt;"> </td><td style="width: 1%; font-family: Times New Roman; font-size: 10pt;"> </td><td style="width: 12%; text-align: right; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;">5,906</td><td style="width: 1%; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;"> </td><td style="width: 1%; font-family: Times New Roman; font-size: 10pt;"> </td><td style="width: 1%; font-family: Times New Roman; font-size: 10pt;"> </td><td style="width: 12%; text-align: right; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;">6,489</td><td style="width: 1%; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;"> </td></tr> <tr style="background-color: rgb(204, 238, 255); vertical-align: bottom"><td style="font-family: Times New Roman; font-size: 10pt;"> <p style="font-family: Times New Roman; font-size: 10pt; font-variant: normal; margin: 0pt;">Interest receivable</p> </td><td style="width: 1%; font-family: Times New Roman; font-size: 10pt;"> </td><td style="width: 1%; font-family: Times New Roman; font-size: 10pt;"> </td><td style="width: 12%; text-align: right; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;">1,275</td><td style="width: 1%; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;"> </td><td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt;"> </td><td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt;"> </td><td style="width: 12%; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt; text-align: right;">962</td><td style="width: 1%; font-family: &quot;Times New Roman&quot;; font-size: 10pt; margin-left: 0pt;"> </td></tr> <tr style="background-color: rgb(255, 255, 255); vertical-align: bottom"><td style="font-family: Times New Roman; font-size: 10pt; padding: 0; margin: 0"> <p style="margin: 0pt; font-size: 10pt; font-family: &quot;Times New Roman&quot;;">Insurance recoveries</p> </td><td style="width: 1%; font-family: Times New Roman; font-size: 10pt; padding: 0; margin: 0"> </td><td style="width: 1%; font-family: Times New Roman; font-size: 10pt; padding: 0; margin: 0"> </td><td style="width: 12%; text-align: right; font-family: Times New Roman; font-size: 10pt; padding: 0; margin: 0">5,000</td><td style="width: 1%; font-family: Times New Roman; font-size: 10pt; padding: 0; margin: 0"> </td><td style="width: 1%; font-family: Times New Roman; font-size: 10pt; padding: 0; margin: 0"> </td><td style="width: 1%; font-family: Times New Roman; font-size: 10pt; padding: 0; margin: 0"> </td><td style="width: 12%; text-align: right; font-family: Times New Roman; font-size: 10pt; padding: 0; margin: 0">—</td><td style="width: 1%; font-family: Times New Roman; font-size: 10pt; padding: 0; margin: 0"> </td></tr> <tr style="background-color: rgb(204, 238, 255); vertical-align: bottom"><td style="font-family: Times New Roman; font-size: 10pt;"> <p style="font-family: Times New Roman; font-size: 10pt; font-variant: normal; margin: 0pt;">Other</p> </td><td style="width: 1%; font-family: Times New Roman; font-size: 10pt;"> </td><td style="width: 1%; font-family: Times New Roman; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);"> </td><td style="width: 12%; text-align: right; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);">192</td><td style="width: 1%; font-family: Times New Roman; font-size: 10pt; padding-bottom: 1px; margin-left: 0pt;"> </td><td style="width: 1%; font-family: Times New Roman; font-size: 10pt;"> </td><td style="width: 1%; font-family: Times New Roman; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);"> </td><td style="width: 12%; text-align: right; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);">287</td><td style="width: 1%; font-family: Times New Roman; font-size: 10pt; padding-bottom: 1px; margin-left: 0pt;"> </td></tr> <tr style="background-color: rgb(255, 255, 255); vertical-align: bottom"><td style="font-family: Times New Roman; font-size: 10pt;"> <p style="font-family: Times New Roman; font-size: 10pt; font-variant: normal; margin: 0pt 0pt 0pt 9pt;">Total prepaid expenses and other current assets</p> </td><td style="width: 1%; font-family: Times New Roman; font-size: 10pt;"> </td><td style="width: 1%; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);">$</td><td style="width: 12%; text-align: right; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);">13,571</td><td style="width: 1%; font-family: Times New Roman; font-size: 10pt; padding-bottom: 3px; margin-left: 0pt;"> </td><td style="width: 1%; font-family: Times New Roman; font-size: 10pt;"> </td><td style="width: 1%; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);">$</td><td style="width: 12%; text-align: right; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);">8,497</td><td style="width: 1%; font-family: Times New Roman; font-size: 10pt; padding-bottom: 3px; margin-left: 0pt;"> </td></tr> </tbody></table> <p style="font-family:'Times New Roman';font-size:10pt;font-variant:normal;margin:0pt;"> </p> <p style="font-family:Times New Roman;font-size:10pt;font-variant:normal;text-align:justify;margin:0pt;text-indent:18pt;">Contract research organization and other deposits represent cash payments made to vendors in excess of expenses incurred.</p> <p style="font-family:'Times New Roman';font-size:10pt;font-variant:normal;margin:0pt;"> </p>
CY2024Q3 us-gaap Prepaid Insurance
PrepaidInsurance
1198000 usd
CY2023Q4 us-gaap Prepaid Insurance
PrepaidInsurance
759000 usd
CY2024Q3 us-gaap Deposit Contracts Assets
DepositContractsAssets
5906000 usd
CY2023Q4 us-gaap Deposit Contracts Assets
DepositContractsAssets
6489000 usd
CY2024Q3 us-gaap Interest Receivable Current
InterestReceivableCurrent
1275000 usd
CY2023Q4 us-gaap Interest Receivable Current
InterestReceivableCurrent
962000 usd
CY2024Q3 us-gaap Insurance Settlements Receivable Current
InsuranceSettlementsReceivableCurrent
5000000 usd
CY2023Q4 us-gaap Insurance Settlements Receivable Current
InsuranceSettlementsReceivableCurrent
0 usd
CY2024Q3 us-gaap Other Assets Current
OtherAssetsCurrent
192000 usd
CY2023Q4 us-gaap Other Assets Current
OtherAssetsCurrent
287000 usd
CY2024Q3 us-gaap Prepaid Expense And Other Assets Current
PrepaidExpenseAndOtherAssetsCurrent
13571000 usd
CY2023Q4 us-gaap Prepaid Expense And Other Assets Current
PrepaidExpenseAndOtherAssetsCurrent
8497000 usd
CY2024Q3 us-gaap Other Nonoperating Income
OtherNonoperatingIncome
288000 usd
CY2023Q3 us-gaap Other Nonoperating Income
OtherNonoperatingIncome
583000 usd
us-gaap Other Nonoperating Income
OtherNonoperatingIncome
1005000 usd
us-gaap Other Nonoperating Income
OtherNonoperatingIncome
1699000 usd
CY2024Q3 us-gaap Other Nonoperating Expense
OtherNonoperatingExpense
226000 usd
CY2023Q3 us-gaap Other Nonoperating Expense
OtherNonoperatingExpense
360000 usd
us-gaap Other Nonoperating Expense
OtherNonoperatingExpense
684000 usd
us-gaap Other Nonoperating Expense
OtherNonoperatingExpense
1083000 usd
CY2024Q3 us-gaap Other Nonoperating Income Expense
OtherNonoperatingIncomeExpense
62000 usd
CY2023Q3 us-gaap Other Nonoperating Income Expense
OtherNonoperatingIncomeExpense
223000 usd
us-gaap Other Nonoperating Income Expense
OtherNonoperatingIncomeExpense
321000 usd
us-gaap Other Nonoperating Income Expense
OtherNonoperatingIncomeExpense
616000 usd
CY2024Q3 us-gaap Property Plant And Equipment Gross
PropertyPlantAndEquipmentGross
24143000 usd
CY2023Q4 us-gaap Property Plant And Equipment Gross
PropertyPlantAndEquipmentGross
24138000 usd
CY2024Q3 us-gaap Accumulated Depreciation Depletion And Amortization Property Plant And Equipment
AccumulatedDepreciationDepletionAndAmortizationPropertyPlantAndEquipment
3008000 usd
CY2023Q4 us-gaap Accumulated Depreciation Depletion And Amortization Property Plant And Equipment
AccumulatedDepreciationDepletionAndAmortizationPropertyPlantAndEquipment
2284000 usd
CY2024Q3 us-gaap Property Plant And Equipment Net
PropertyPlantAndEquipmentNet
21135000 usd
CY2023Q4 us-gaap Property Plant And Equipment Net
PropertyPlantAndEquipmentNet
21854000 usd
CY2024Q3 us-gaap Depreciation
Depreciation
228000 usd
CY2023Q3 us-gaap Depreciation
Depreciation
273000 usd
us-gaap Depreciation
Depreciation
724000 usd
us-gaap Depreciation
Depreciation
817000 usd
CY2024Q3 us-gaap Finite Lived Intangible Assets Gross
FiniteLivedIntangibleAssetsGross
1387000 usd
CY2023Q4 us-gaap Finite Lived Intangible Assets Gross
FiniteLivedIntangibleAssetsGross
1346000 usd
CY2024Q3 us-gaap Finite Lived Intangible Assets Accumulated Amortization
FiniteLivedIntangibleAssetsAccumulatedAmortization
1318000 usd
CY2023Q4 us-gaap Finite Lived Intangible Assets Accumulated Amortization
FiniteLivedIntangibleAssetsAccumulatedAmortization
1170000 usd
CY2024Q3 us-gaap Finite Lived Intangible Assets Net
FiniteLivedIntangibleAssetsNet
69000 usd
CY2023Q4 us-gaap Finite Lived Intangible Assets Net
FiniteLivedIntangibleAssetsNet
176000 usd
CY2024Q3 us-gaap Amortization Of Intangible Assets
AmortizationOfIntangibleAssets
32000 usd
CY2023Q3 us-gaap Amortization Of Intangible Assets
AmortizationOfIntangibleAssets
119000 usd
us-gaap Amortization Of Intangible Assets
AmortizationOfIntangibleAssets
148000 usd
us-gaap Amortization Of Intangible Assets
AmortizationOfIntangibleAssets
357000 usd
CY2024Q3 us-gaap Finite Lived Intangible Assets Amortization Expense Remainder Of Fiscal Year
FiniteLivedIntangibleAssetsAmortizationExpenseRemainderOfFiscalYear
31000 usd
CY2024Q3 us-gaap Finite Lived Intangible Assets Amortization Expense Next Twelve Months
FiniteLivedIntangibleAssetsAmortizationExpenseNextTwelveMonths
18000 usd
CY2024Q3 us-gaap Finite Lived Intangible Assets Amortization Expense Year Two
FiniteLivedIntangibleAssetsAmortizationExpenseYearTwo
14000 usd
CY2024Q3 us-gaap Finite Lived Intangible Assets Amortization Expense Year Three
FiniteLivedIntangibleAssetsAmortizationExpenseYearThree
6000 usd
CY2024Q3 us-gaap Finite Lived Intangible Assets Net
FiniteLivedIntangibleAssetsNet
69000 usd
CY2023Q4 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Outstanding Number
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingNumber
3039029
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<p style="font-family:Times New Roman;font-size:10pt;font-variant:normal;text-align:justify;margin:0pt;"><b>Note <em style="font: inherit;">11.</em> Contingencies</b></p> <p style="font-family:'Times New Roman';font-size:10pt;font-variant:normal;margin:0pt;"> </p> <p style="font-family: &quot;Times New Roman&quot;; font-size: 10pt; font-variant: normal; text-align: justify; margin: 0pt 0pt 0pt -1pt; text-indent: 18pt;">The Company is, and from time to time, the Company <em style="font: inherit;"> may </em>become, involved in litigation or other legal proceedings and claims, including U.S. government inquiries, investigations and Citizen Petitions submitted to FDA. In addition, the Company has received, and from time to time <em style="font: inherit;"> may </em>receive, inquiries from government authorities relating to matters arising from the ordinary course of business. The outcome of these proceedings is inherently uncertain. Regardless of outcome, legal proceedings can have an adverse impact on the Company because of defense and settlement costs, diversion of management resources, and other factors. At this time, <em style="font: inherit;">no</em> assessment can be made as to their likely outcome or whether the outcome will be material to the Company other than as disclosed below. The Company believes that its total provisions for legal matters are adequate based upon currently available information.</p> <p style="margin: 0pt 0pt 0pt -9pt; font-size: 10pt; font-family: &quot;Times New Roman&quot;;"> </p> <p style="font-family: &quot;Times New Roman&quot;; font-size: 10pt; font-variant: normal; margin: 0pt 0pt 0pt -2pt;"><i>Update on Government Investigations</i></p> <p style="font-family: &quot;Times New Roman&quot;; font-size: 10pt; font-variant: normal; margin: 0pt 0pt 0pt -9pt;"> </p> <p style="font-family: &quot;Times New Roman&quot;; font-size: 10pt; font-variant: normal; text-align: justify; margin: 0pt 0pt 0pt -2pt; text-indent: 25pt;">Beginning in <em style="font: inherit;"> August 2021, </em>the Company has received subpoenas, a Civil Investigative Demand (“CID”) and other requests for documents and information from the Department of Justice (“DOJ”) and document requests from the SEC, each seeking corporate information and documents concerning the research and development of simufilam and/or SavaDx. The Company has been providing documents and information in response to these subpoenas, the CID and requests for information.</p> <p style="font-family: &quot;Times New Roman&quot;; font-size: 10pt; font-variant: normal; text-align: justify; margin: 0pt 0pt 0pt -2pt; text-indent: 25pt;"> </p> <p style="font-family: &quot;Times New Roman&quot;; font-size: 10pt; font-variant: normal; text-align: justify; margin: 0pt 0pt 0pt -4pt; text-indent: 25pt;">On <em style="font: inherit;"> September 26, 2024, </em>the Company announced that it had reached a settlement with the SEC resolving the SEC investigation of the Company’s disclosures regarding its Phase <em style="font: inherit;">2b</em> clinical trial of simufilam for the treatment of Alzheimer’s disease (the “Phase <em style="font: inherit;">2b</em> Study”) and related matters. The SEC also agreed to a settlement with <em style="font: inherit;">two</em> former senior employees of the Company. The settlements with the Company and its former senior employees are subject to final approval by a U.S. District Court. The SEC’s complaint alleges that certain disclosures by the Company regarding the Phase <em style="font: inherit;">2b</em> Study violated certain federal securities laws and SEC rules, including negligence-based disclosure violations of Sections <em style="font: inherit;">17</em>(a)(<em style="font: inherit;">2</em>) and <em style="font: inherit;">17</em>(a)(<em style="font: inherit;">3</em>) of the Securities Act of <em style="font: inherit;">1933,</em> as amended (the “Securities Act”), as well as recordkeeping and reporting requirements under the Securities Exchange Act of <em style="font: inherit;">1934,</em> as amended (the “Exchange Act”). The complaint alleges that the Company’s SEC reports and other public statements regarding the Phase <em style="font: inherit;">2b</em> Study negligently contained materially misleading statements and omissions. The SEC’s allegations with respect to the Company’s <em style="font: inherit;">two</em> former employees relate to these employees’ roles in such disclosures. Under its settlement, the Company has consented to a permanent injunction against future violations of Section <em style="font: inherit;">17</em>(a) of the Securities Act, Section <em style="font: inherit;">13</em>(a)(<em style="font: inherit;">1</em>) of the Exchange Act and Rules <em style="font: inherit;">12b</em>-<em style="font: inherit;">20,</em> <em style="font: inherit;">13a</em>-<em style="font: inherit;">1,</em> <em style="font: inherit;">13a</em>-<em style="font: inherit;">11</em> and <em style="font: inherit;">13a</em>-<em style="font: inherit;">13</em> under the Exchange Act. In addition, the Company has agreed to pay a civil monetary penalty of <em style="font: inherit;">$40</em> million, which is classified in accounts payable and accrued expenses on its consolidated balance sheet as of <em style="font: inherit;"> September 30, 2024.</em></p> <p style="font-family: &quot;Times New Roman&quot;; font-size: 10pt; font-variant: normal; margin: 0pt 0pt 0pt -9pt;"> </p> <p style="font-family: &quot;Times New Roman&quot;; font-size: 10pt; font-variant: normal; text-align: justify; margin: 0pt 0pt 0pt -2pt; text-indent: 25pt;">The Company continues to cooperate with the DOJ related to requests for documents and information, including those related to conduct alleged in the indictment of Dr. Hoau-Yan Wang announced by DOJ on <em style="font: inherit;"> June 28, 2024. </em>The Company cannot predict the outcome or impact of ongoing matters, including whether a government authority <em style="font: inherit;"> may </em>pursue an enforcement action against the Company or others. The Company does <em style="font: inherit;">not</em> at this time anticipate, however, that DOJ will bring criminal charges against or seek a criminal resolution with the Company.</p> <p style="font-family: &quot;Times New Roman&quot;; font-size: 10pt; font-variant: normal; margin: 0pt 0pt 0pt -9pt;"> </p> <p style="font-family: &quot;Times New Roman&quot;; font-size: 10pt; font-variant: normal; text-align: justify; margin: 0pt 0pt 0pt -2pt;"><i>Securities Class Actions and Shareholder Derivative Actions</i></p> <p style="font-family: &quot;Times New Roman&quot;; font-size: 10pt; font-variant: normal; margin: 0pt 0pt 0pt -9pt;"> </p> <p style="font-family: &quot;Times New Roman&quot;; font-size: 10pt; font-variant: normal; text-align: justify; margin: 0pt 0pt 0pt -2pt; text-indent: 18pt;">Between <em style="font: inherit;"> August 27, 2021 </em>and <em style="font: inherit;"> October 26, 2021, </em><span style="-sec-ix-hidden:c120064488">four</span> putative class action lawsuits were filed alleging violations of the federal securities laws by the Company and certain named officers. The complaints rely on allegations contained in Citizen Petitions submitted to FDA and allege that various statements made by the defendants regarding simufilam were rendered materially false and misleading. The Citizen Petitions were all subsequently denied by FDA. These actions were filed in the U.S. District Court for the Western District of Texas. The complaints seek unspecified compensatory damages and other relief on behalf of a purported class of purchasers.</p> <p style="font-family: &quot;Times New Roman&quot;; font-size: 10pt; font-variant: normal; margin: 0pt 0pt 0pt -9pt;"> </p> <p style="font-family: &quot;Times New Roman&quot;; font-size: 10pt; font-variant: normal; text-align: justify; margin: 0pt 0pt 0pt -2pt; text-indent: 18pt;">On <em style="font: inherit;"> June 30, 2022, </em>a federal judge consolidated the <span style="-sec-ix-hidden:c120064489">four</span> class action lawsuits into <span style="-sec-ix-hidden:c120064490">one</span> case and appointed a lead plaintiff and a lead counsel. Lead plaintiff filed a consolidated amended complaint on <em style="font: inherit;"> August 18, 2022 </em>on behalf of a putative class of purchasers of the Company’s securities between <em style="font: inherit;"> September 14, 2020 </em>and <em style="font: inherit;"> July 26, 2022. </em>On <em style="font: inherit;"> May 11, 2023, </em>the court dismissed with prejudice plaintiffs’ claims against defendant Nadav Friedmann, PhD, MD, our former Chief Medical Officer and a Company director, who is now deceased, but otherwise denied defendants’ motion to dismiss. Defendants filed an answer to the consolidated amended complaint on <em style="font: inherit;"> July 3, 2023. </em>On <em style="font: inherit;"> February 22, 2024, </em>plaintiffs filed a motion to supplement their complaint to extend the putative class period through <em style="font: inherit;"> October 12, 2023.  </em>The court granted that Motion on <em style="font: inherit;"> June 12, 2024, </em>and plaintiffs filed a supplemental complaint on <em style="font: inherit;"> June 13, 2023.  </em>On <em style="font: inherit;"> March 13, 2024, </em>plaintiffs filed a Motion for Class Certification.  The Company has opposed that Motion.</p> <p style="font-family: 'Times New Roman', Times, serif; font-size: 10pt; margin: 0pt; text-align: left"> </p> <p style="font-family: &quot;Times New Roman&quot;; font-size: 10pt; font-variant: normal; text-align: justify; margin: 0pt 0pt 0pt -2pt; text-indent: 18pt;">On <em style="font: inherit;"> November 4, 2021, </em>a related shareholder derivative action was filed, purportedly on behalf of the Company, in the U.S. District Court for the Western District of Texas, asserting claims under the U.S. securities laws and state fiduciary duty laws against certain named officers and the members of the Company’s Board. This complaint relies on the allegations made in Citizen Petitions that were submitted to (and subsequently denied by) FDA. The complaint alleges, among other things, that the individual defendants exposed the Company to unspecified damages and securities law liability by causing it to make materially false and misleading statements, in violation of the U.S. securities laws and in breach of their fiduciary duties to the Company. The derivative case seeks, among other things, to recover unspecified compensatory damages on behalf of the Company arising out of the individual defendants’ alleged wrongful conduct. Although the plaintiff in this derivative case does <em style="font: inherit;">not</em> seek relief against the Company, the Company has certain indemnification obligations to the individual defendants. Between <em style="font: inherit;"> November 4, 2021 </em>and <em style="font: inherit;"> June 20, 2023, </em><span style="-sec-ix-hidden:c120064493">four</span> additional shareholder derivative actions were filed alleging substantially similar claims, <span style="-sec-ix-hidden:c120064494">two</span> in the U.S. District Court for the Western District of Texas, <span style="-sec-ix-hidden:c120064495">one</span> in Texas state court (Travis County District Court) and <span style="-sec-ix-hidden:c120064496">one</span> in the Delaware Court of Chancery. On <em style="font: inherit;"> July 5, 2022, </em>the <span style="-sec-ix-hidden:c120064497">three</span> actions in the Western District of Texas were consolidated into a single action. All of the foregoing actions are currently stayed pending further developments in the consolidated securities action described above. On <em style="font: inherit;"> November 9, 2023, </em>another shareholder derivative action alleging substantially similar claims was filed in the U.S. District Court for the Western District of Texas. The parties to that case expect that it will be consolidated into the existing consolidated federal court shareholder derivative action.</p> <p style="font-family: &quot;Times New Roman&quot;; font-size: 10pt; font-variant: normal; text-align: justify; margin: 0pt 0pt 0pt -2pt; text-indent: 18pt;"> </p> <p style="font-family: &quot;Times New Roman&quot;; font-size: 10pt; font-variant: normal; text-align: justify; margin: 0pt 0pt 0pt -2pt; text-indent: 18pt;">On <em style="font: inherit;"> February 2, 2024, </em>a putative class action lawsuit was filed, purportedly on behalf of the Company, alleging violations of the federal securities law by the Company and certain named officers. The complaint relies on an <em style="font: inherit;"> October 12, 2023 </em>article that describes a purported leaked report of alleged scientific misconduct by a scientific collaborator of the Company at City University of New York. The complaint alleges that various statements made by the defendants regarding simufilam were rendered materially false and misleading by this article. The action was filed in the U.S. District Court for the Northern District of Illinois. The complaint seeks unspecified compensatory damages and other relief on behalf of a purported class of purchasers of the Company’s securities between <em style="font: inherit;"> August 18, 2022 </em>and <em style="font: inherit;"> October 12, 2023. </em>On <em style="font: inherit;"> May 28, 2024, </em>the Northern District of Illinois transferred this action to the Western District of Texas.</p> <p style="font-family: &quot;Times New Roman&quot;; font-size: 10pt; font-variant: normal; margin: 0pt 0pt 0pt -9pt;"> </p> <p style="font-family: &quot;Times New Roman&quot;; font-size: 10pt; font-variant: normal; text-align: justify; margin: 0pt 0pt 0pt -2pt; text-indent: 18pt;">Beginning on <em style="font: inherit;"> March 18, 2024, </em><span style="-sec-ix-hidden:c120064499">two</span> related shareholder derivative actions were filed, purportedly on behalf of the Company, in the U.S. District Court for the Northern District of Illinois, asserting claims under the U.S. securities laws and state fiduciary duty laws against certain named officers and the members of the Company’s Board. The complaints rely on an <em style="font: inherit;"> October 12, 2023 </em>article that describes a purported leaked report of alleged scientific misconduct by a scientific collaborator of the Company at City University of New York. The complaints allege, among other things, that the individual defendants exposed the Company to unspecified damages and securities law liability by causing it to make materially false and misleading statements, in violation of the U.S. securities laws and in breach of their fiduciary duties to the Company. The derivative cases seek, among other things, to recover unspecified compensatory damages on behalf of the Company arising out of the individual defendant’s alleged wrongful conduct. Although the plaintiffs in these derivative cases do <em style="font: inherit;">not</em> seek relief against the Company, the Company has certain indemnification obligations to the individual defendants. On <em style="font: inherit;"> September 6, 2024, </em>these <span style="-sec-ix-hidden:c120064501">two</span> cases were consolidated and stayed pending further developments in the shareholder class action initially filed in the Northern District of Illinois on <em style="font: inherit;"> February 2, 2024.</em></p> <p style="font-family: &quot;Times New Roman&quot;; font-size: 10pt; font-variant: normal; margin: 0pt 0pt 0pt -9pt;"> </p> <p style="font-family: &quot;Times New Roman&quot;; font-size: 10pt; font-variant: normal; text-align: justify; margin: 0pt 0pt 0pt -2pt; text-indent: 18pt;">The Company disputes the allegations and intends to defend against these lawsuits vigorously. The Company is unable to estimate the possible loss or range of loss, if any, associated with these lawsuits.</p> <p style="font-family: &quot;Times New Roman&quot;; font-size: 10pt; font-variant: normal; margin: 0pt 0pt 0pt -9pt;"> </p> <p style="font-family: &quot;Times New Roman&quot;; font-size: 10pt; font-variant: normal; text-align: justify; margin: 0pt 0pt 0pt -2pt; text-indent: 18pt;">On <em style="font: inherit;"> August 19, 2022, </em>a shareholder derivative action was filed, purportedly on behalf of the Company, in the Delaware Court of Chancery, asserting claims under state fiduciary duty laws against certain named officers and members of the Company’s Board. The complaint alleges, among other things, that the individual defendants breached their fiduciary duties by approving the CIB Plan in <em style="font: inherit;"> August 2020. </em>The complaints seek unspecified compensatory damages and other relief. On <em style="font: inherit;"> January 6, 2023, </em>the plaintiffs filed an amended complaint. Defendants filed a partial answer to the amended complaint on <em style="font: inherit;"> March 10, 2023, </em>and moved to partially dismiss the amended complaint on <em style="font: inherit;"> March 14, 2023.</em></p> <p style="font-family: 'Times New Roman', Times, serif; font-size: 10pt; margin: 0pt; text-align: left"> </p> <p style="font-family: &quot;Times New Roman&quot;; font-size: 10pt; font-variant: normal; text-align: justify; margin: 0pt 0pt 0pt -2pt; text-indent: 18pt;">On <em style="font: inherit;"> May 28, 2024, </em>the parties entered into a Stipulation and Agreement of Settlement, Compromise, and Release (the “Stipulation”) to resolve the action. The Stipulation and exhibits thereto, including the proposed Notice of Pendency of Settlement of Class and Derivative Action (the “Notice”) and [Proposed] Scheduling Order with Respect to Notice and Settlement Hearing (the “Scheduling Order”), were filed in the Delaware Court of Chancery on <em style="font: inherit;"> May 28, 2024.  </em>The Stipulation is subject to final approval by the Delaware Court of Chancery. The Stipulation, if finally approved, will cause the dismissal with prejudice of the Action.</p> <p style="font-family: &quot;Times New Roman&quot;; font-size: 10pt; font-variant: normal; margin: 0pt 0pt 0pt -9pt;"> </p> <p style="font-family: &quot;Times New Roman&quot;; font-size: 10pt; font-variant: normal; text-align: justify; margin: 0pt 0pt 0pt -2pt; text-indent: 18pt;">On <em style="font: inherit;"> June 26, 2024, </em>the Delaware Court of Chancery entered the Scheduling Order, which includes approval of the Notice.  Resolution of the Action is subject to approval from the Delaware Court of Chancery. The Delaware Court of Chancery held a settlement hearing on <em style="font: inherit;"> September 9, 2024. </em>Supplemental briefing followed and the matter remains under submission.</p> <p style="font-family: &quot;Times New Roman&quot;; font-size: 10pt; font-variant: normal; text-align: justify; margin: 0pt 0pt 0pt -2pt; text-indent: 18pt;"> </p> <p style="font-family: &quot;Times New Roman&quot;; font-size: 10pt; font-variant: normal; margin: 0pt 0pt 0pt -1pt;"><i>Anti-SLAPP Lawsuit</i></p> <p style="font-family: &quot;Times New Roman&quot;; font-size: 10pt; font-variant: normal; margin: 0pt 0pt 0pt -9pt;"> </p> <p style="font-family: &quot;Times New Roman&quot;; font-size: 10pt; font-variant: normal; margin: 0pt 0pt 0pt -1pt; text-indent: 18pt;">On <em style="font: inherit;"> August 6, 2024, </em>a lawsuit was filed in the District Court for the Southern District of New York which, as amended, asserts claims, including a claim under the New York Anti-SLAPP Law, against the Company and against two former officers to whom the Company has certain indemnification obligations. The amended complaint seeks costs and damages relating to a defamation action filed by the Company against the plaintiffs and subsequently dismissed voluntarily and without prejudice by the Company. The Company will defend the lawsuit vigorously. The Company is unable to estimate the possible loss or range of loss, if any, associated with this lawsuit.</p>
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