2023 Q1 Form 10-K Financial Statement

#000193765323000011 Filed on March 07, 2023

View on sec.gov

Income Statement

Concept 2023 Q1 2022 Q4 2022
Revenue $35.58M $402.5M $412.5M
YoY Change 1756.89% 1925.63% 1446.03%
Cost Of Revenue
YoY Change
Gross Profit
YoY Change
Gross Profit Margin
Selling, General & Admin $16.95M $30.13M $73.36M
YoY Change 40.15% 414.71% 72.36%
% of Gross Profit
Research & Development $45.91M $52.97M $208.6M
YoY Change -26.55% -3.46% 4.43%
% of Gross Profit
Depreciation & Amortization $1.584M $1.681M $6.220M
YoY Change -35.77% 68.94% -4.78%
% of Gross Profit
Operating Expenses $45.91M $83.10M $208.6M
YoY Change -38.46% 36.86% -13.91%
Operating Profit -$27.28M $130.5M
YoY Change -62.47% -160.53%
Interest Expense $4.805M $1.068M $3.596M
YoY Change -8108.33% 253.64% 13.94%
% of Operating Profit 2.75%
Other Income/Expense, Net -$487.0K -$27.00K $1.110M
YoY Change -1136.17% -212.5% 840.68%
Pretax Income -$22.96M $320.4M $135.2M
YoY Change -68.41% -890.75% -163.68%
Income Tax $1.390M $11.01M $10.89M
% Of Pretax Income 3.43% 8.05%
Net Earnings -$24.35M $309.4M $124.3M
YoY Change -66.47% -890.33% -158.69%
Net Earnings / Revenue -68.45% 76.88% 30.14%
Basic Earnings Per Share -$0.36 $1.91
Diluted Earnings Per Share -$0.37 $4.64 $1.90
COMMON SHARES
Basic Shares Outstanding 64.04M shares 63.00M shares 65.19M shares
Diluted Shares Outstanding 66.74M shares 65.25M shares

Balance Sheet

Concept 2023 Q1 2022 Q4 2022
SHORT-TERM ASSETS
Cash & Short-Term Investments $340.8M $492.2M $492.2M
YoY Change 13.4% 94.86% 94.86%
Cash & Equivalents $181.6M $400.9M $400.9M
Short-Term Investments $159.2M $91.32M $91.32M
Other Short-Term Assets $18.67M $19.07M $19.07M
YoY Change -3.09% -4.62% -4.62%
Inventory
Prepaid Expenses
Receivables $66.92M $33.40M $33.40M
Other Receivables $0.00 $0.00 $0.00
Total Short-Term Assets $426.4M $544.7M $544.7M
YoY Change 31.59% 88.99% 88.99%
LONG-TERM ASSETS
Property, Plant & Equipment $23.51M $24.71M $47.65M
YoY Change -52.69% -50.35% -4.26%
Goodwill $12.02M $12.02M
YoY Change 0.0%
Intangibles
YoY Change
Long-Term Investments $72.47M $886.0K $886.0K
YoY Change 8079.91% 0.0% 0.0%
Other Assets $18.36M $17.08M $17.08M
YoY Change -12.64% 1.85% 1.85%
Total Long-Term Assets $174.4M $104.0M $104.0M
YoY Change 64.57% 3.08% 3.08%
TOTAL ASSETS
Total Short-Term Assets $426.4M $544.7M $544.7M
Total Long-Term Assets $174.4M $104.0M $104.0M
Total Assets $600.7M $648.7M $648.7M
YoY Change 39.72% 66.71% 66.71%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $6.433M $7.863M $7.863M
YoY Change -54.14% 51.97% 51.97%
Accrued Expenses $54.40M $81.09M $81.09M
YoY Change -10.71% 43.06% 43.06%
Deferred Revenue $2.353M $2.353M
YoY Change
Short-Term Debt $0.00 $0.00 $0.00
YoY Change
Long-Term Debt Due
YoY Change
Total Short-Term Liabilities $67.32M $95.63M $95.63M
YoY Change -15.82% 33.08% 33.08%
LONG-TERM LIABILITIES
Long-Term Debt $121.0K $124.0K $124.0K
YoY Change 31.52% 24.0% 24.0%
Other Long-Term Liabilities $3.595M $3.101M $58.23M
YoY Change -94.55% -95.34% -12.45%
Total Long-Term Liabilities $3.595M $3.101M $58.36M
YoY Change -94.56% -95.34% -12.39%
TOTAL LIABILITIES
Total Short-Term Liabilities $67.32M $95.63M $95.63M
Total Long-Term Liabilities $3.595M $3.101M $58.36M
Total Liabilities $127.2M $155.8M $155.8M
YoY Change -13.78% 11.23% 11.23%
SHAREHOLDERS EQUITY
Retained Earnings -$583.1M -$558.8M
YoY Change -18.2%
Common Stock $1.053B $1.038B
YoY Change 10.55%
Preferred Stock
YoY Change
Treasury Stock (at cost)
YoY Change
Treasury Stock Shares
Shareholders Equity $473.5M $493.0M $493.0M
YoY Change
Total Liabilities & Shareholders Equity $600.7M $648.7M $648.7M
YoY Change 39.72% 66.71% 66.71%

Cashflow Statement

Concept 2023 Q1 2022 Q4 2022
OPERATING ACTIVITIES
Net Income -$24.35M $309.4M $124.3M
YoY Change -66.47% -890.33% -158.69%
Depreciation, Depletion And Amortization $1.584M $1.681M $6.220M
YoY Change -35.77% 68.94% -4.78%
Cash From Operating Activities -$83.19M $327.4M $144.1M
YoY Change 50.13% -748.12% -174.88%
INVESTING ACTIVITIES
Capital Expenditures $386.0K $883.0K $8.150M
YoY Change -91.79% -84.3% -38.65%
Acquisitions
YoY Change
Other Investing Activities -$137.8M -$21.18M -$40.72M
YoY Change -645.28% -662.3% -125.79%
Cash From Investing Activities -$138.2M -$22.06M -$53.85M
YoY Change -771.83% 1088.21% -137.24%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net $107.5M
YoY Change 1165.4%
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities $1.738M -377.0K $108.6M
YoY Change -98.4% -154.72% 1255.41%
NET CHANGE
Cash From Operating Activities -$83.19M 327.4M $144.1M
Cash From Investing Activities -$138.2M -22.06M -$53.85M
Cash From Financing Activities $1.738M -377.0K $108.6M
Net Change In Cash -$219.3M 304.9M $199.0M
YoY Change -397.31% -690.05% -599.56%
FREE CASH FLOW
Cash From Operating Activities -$83.19M $327.4M $144.1M
Capital Expenditures $386.0K $883.0K $8.150M
Free Cash Flow -$83.58M $326.5M $136.0M
YoY Change 39.03% -681.61% -166.08%

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Nature of Operations<div style="margin-top:6pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">Zymeworks Inc. (the “Company” or “Zymeworks”) is a clinical-stage biopharmaceutical company dedicated to the development of next-generation multifunctional biotherapeutics. Zymeworks BC Inc. (previously known as "Zymeworks Inc.") was incorporated on September 8, 2003 under the laws of the Canada Business Corporations Act. On October 22, 2003, the Company was registered as an extra-provincial company under the Company Act (British Columbia). On May 2, 2017, the Company continued under the Business Corporations Act (British Columbia).</span></div><div style="margin-top:12pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">Since its inception, the Company has devoted substantially all of its resources to research and development activities, including developing its therapeutic platforms and identifying and developing potential product candidates by undertaking preclinical studies and clinical trials. The Company supports these activities through general and administrative support, as well as by raising capital, conducting business planning and protecting its intellectual property. </span></div><div style="margin-top:12pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">On July 15, 2022, the Company announced its intention to become a Delaware corporation, subject to receipt of necessary shareholder, stock exchange, and court approvals (the "Redomicile Transactions"). The Redomicile Transactions were completed on October 13, 2022. On October 13, 2022, the Company changed its name to Zymeworks BC Inc. Unless the context otherwise requires or otherwise expressly states, all references in the accompanying consolidated financial statements to “Zymeworks,” the “Company,” “we,” “us” and “our” (i) for periods until completion of the Redomicile Transactions, refer to Zymeworks BC Inc. and its subsidiaries and (ii) for periods after completion of the Redomicile Transactions, refer to Zymeworks Inc. (formerly known as Zymeworks Delaware Inc.) and its subsidiaries. </span></div>To effect the Redomicile Transactions, the Company conducted a share exchange, pursuant to which holders of the Company's common shares exchanged their common shares in the Company for shares of common stock of Zymeworks Inc. (formerly known as Zymeworks Delaware Inc.) or, at their election with respect to all or a portion of their common shares in the Company and subject to applicable eligibility criteria and an overall cap, exchangeable shares (the “Exchangeable Shares”) in the capital of a newly formed indirect subsidiary of Zymeworks Inc. A special meeting of Company security holders was held on October 7, 2022 to approve the Redomicile Transactions. The Redomicile Transactions were governed by a transaction agreement dated July 14, 2022, as restated and amended on August 18, 2022 (the “Restated and Amended Transaction Agreement”), by and among the Company and its direct or indirect subsidiaries Zymeworks Inc., Zymeworks CallCo ULC and Zymeworks ExchangeCo Ltd., including a plan of arrangement included as Exhibit A to the Restated and Amended Transaction Agreement (the “Plan of Arrangement”).
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<div style="margin-top:12pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-style:italic;font-weight:700;line-height:120%">Use of Estimates</span></div><div style="margin-top:6pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">The preparation of consolidated financial statements in accordance with U.S. GAAP requires the Company to make estimates and judgments in certain circumstances that affect the reported amounts of assets, liabilities, revenue and expenses, and related disclosure of contingent assets and liabilities. On an ongoing basis, the Company evaluates its estimates, most notably those related to revenue recognition including estimated timing of completion of performance obligations required to meet revenue recognition criteria, accrual of expenses including clinical and preclinical study expense accruals, stock-based compensation, valuation allowance for deferred taxes, benefits under the Scientific Research and Experimental Development (“SR&amp;ED”) program, and other contingencies. Management bases its estimates on historical experience and on various other assumptions that it believes to be reasonable under the circumstances. Actual results could differ from these estimates.</span></div>
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16244000 usd
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100000 usd
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3346000 usd
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7799000 usd
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1064000 usd
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1839000 usd
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2242000 usd
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1248000 usd
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1498000 usd
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1047000 usd
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1150000 usd
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124000 usd
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3101000 usd
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2748000 usd
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1000000000 shares
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900000000 shares
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100000000 shares
CY2022Q4 us-gaap Preferred Stock Shares Authorized
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100000000 shares
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1424533 shares
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27.97
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255000 usd
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6428000 usd
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CY2021 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Fair Value Assumptions Expected Dividend Rate
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26680000 usd
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38951000 usd
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32941000 usd
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32941000 usd
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2353000 usd
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437000 usd
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1573000 usd
CY2022Q4 us-gaap Deferred Tax Liabilities
DeferredTaxLiabilities
443000 usd
CY2021Q4 us-gaap Deferred Tax Assets Liabilities Net
DeferredTaxAssetsLiabilitiesNet
1497000 usd
CY2022Q4 us-gaap Deferred Tax Assets Operating Loss Carryforwards
DeferredTaxAssetsOperatingLossCarryforwards
314700000 usd
CY2021Q4 us-gaap Deferred Tax Assets Operating Loss Carryforwards
DeferredTaxAssetsOperatingLossCarryforwards
457600000 usd
CY2022Q4 us-gaap Operating Loss Carryforwards
OperatingLossCarryforwards
314653000 usd
CY2021Q4 us-gaap Unrecognized Tax Benefits
UnrecognizedTaxBenefits
3063000 usd
CY2020Q4 us-gaap Unrecognized Tax Benefits
UnrecognizedTaxBenefits
3063000 usd
CY2019Q4 us-gaap Unrecognized Tax Benefits
UnrecognizedTaxBenefits
3063000 usd
CY2022 us-gaap Unrecognized Tax Benefits Increases Resulting From Prior Period Tax Positions
UnrecognizedTaxBenefitsIncreasesResultingFromPriorPeriodTaxPositions
0 usd
CY2021 us-gaap Unrecognized Tax Benefits Increases Resulting From Prior Period Tax Positions
UnrecognizedTaxBenefitsIncreasesResultingFromPriorPeriodTaxPositions
0 usd
CY2020 us-gaap Unrecognized Tax Benefits Increases Resulting From Prior Period Tax Positions
UnrecognizedTaxBenefitsIncreasesResultingFromPriorPeriodTaxPositions
0 usd
CY2022 us-gaap Unrecognized Tax Benefits Increases Resulting From Current Period Tax Positions
UnrecognizedTaxBenefitsIncreasesResultingFromCurrentPeriodTaxPositions
0 usd
CY2021 us-gaap Unrecognized Tax Benefits Increases Resulting From Current Period Tax Positions
UnrecognizedTaxBenefitsIncreasesResultingFromCurrentPeriodTaxPositions
0 usd
CY2020 us-gaap Unrecognized Tax Benefits Increases Resulting From Current Period Tax Positions
UnrecognizedTaxBenefitsIncreasesResultingFromCurrentPeriodTaxPositions
0 usd
CY2022Q4 us-gaap Unrecognized Tax Benefits
UnrecognizedTaxBenefits
3063000 usd
CY2021Q4 us-gaap Unrecognized Tax Benefits
UnrecognizedTaxBenefits
3063000 usd
CY2020Q4 us-gaap Unrecognized Tax Benefits
UnrecognizedTaxBenefits
3063000 usd
CY2022Q4 us-gaap Unrecognized Tax Benefits That Would Impact Effective Tax Rate
UnrecognizedTaxBenefitsThatWouldImpactEffectiveTaxRate
0 usd
CY2020Q4 us-gaap Unrecognized Tax Benefits That Would Impact Effective Tax Rate
UnrecognizedTaxBenefitsThatWouldImpactEffectiveTaxRate
0 usd
CY2021Q4 us-gaap Unrecognized Tax Benefits That Would Impact Effective Tax Rate
UnrecognizedTaxBenefitsThatWouldImpactEffectiveTaxRate
0 usd
CY2021Q4 us-gaap Operating Lease Liability Current
OperatingLeaseLiabilityCurrent
1310000 usd
CY2022Q4 us-gaap Operating Lease Liability Noncurrent
OperatingLeaseLiabilityNoncurrent
24667000 usd
CY2021Q4 us-gaap Operating Lease Liability Noncurrent
OperatingLeaseLiabilityNoncurrent
30923000 usd
CY2022Q4 us-gaap Operating Lease Liability
OperatingLeaseLiability
27989000 usd
CY2021Q4 us-gaap Operating Lease Liability
OperatingLeaseLiability
32233000 usd
CY2022Q4 us-gaap Finance Lease Liability Current
FinanceLeaseLiabilityCurrent
16000 usd
CY2021Q4 us-gaap Finance Lease Liability Current
FinanceLeaseLiabilityCurrent
22000 usd
CY2022Q4 us-gaap Finance Lease Liability Noncurrent
FinanceLeaseLiabilityNoncurrent
124000 usd
CY2021Q4 us-gaap Finance Lease Liability Noncurrent
FinanceLeaseLiabilityNoncurrent
100000 usd
CY2022Q4 us-gaap Finance Lease Liability
FinanceLeaseLiability
140000 usd
CY2021Q4 us-gaap Finance Lease Liability
FinanceLeaseLiability
122000 usd
CY2022Q4 zyme Lease Liability
LeaseLiability
28129000 usd
CY2021Q4 zyme Lease Liability
LeaseLiability
32355000 usd
CY2022 us-gaap Operating Lease Payments
OperatingLeasePayments
4471000 usd
CY2022Q4 us-gaap Lessee Operating Lease Liability Payments Due Next Rolling Twelve Months
LesseeOperatingLeaseLiabilityPaymentsDueNextRollingTwelveMonths
4435000 usd
CY2022Q4 us-gaap Lessee Operating Lease Liability Payments Due In Rolling Year Two
LesseeOperatingLeaseLiabilityPaymentsDueInRollingYearTwo
4493000 usd
CY2022Q4 us-gaap Lessee Operating Lease Liability Payments Due In Rolling Year Three
LesseeOperatingLeaseLiabilityPaymentsDueInRollingYearThree
4611000 usd
CY2022Q4 us-gaap Lessee Operating Lease Liability Payments Due In Rolling Year Four
LesseeOperatingLeaseLiabilityPaymentsDueInRollingYearFour
4589000 usd
CY2022Q4 us-gaap Lessee Operating Lease Liability Payments Due In Rolling Year Five
LesseeOperatingLeaseLiabilityPaymentsDueInRollingYearFive
3357000 usd
CY2022Q4 us-gaap Lessee Operating Lease Liability Payments Due After Rolling Year Five
LesseeOperatingLeaseLiabilityPaymentsDueAfterRollingYearFive
11653000 usd
CY2022Q4 us-gaap Lessee Operating Lease Liability Payments Due
LesseeOperatingLeaseLiabilityPaymentsDue
33138000 usd
CY2022Q4 us-gaap Lessee Operating Lease Liability Undiscounted Excess Amount
LesseeOperatingLeaseLiabilityUndiscountedExcessAmount
5149000 usd
CY2022Q4 us-gaap Operating Lease Liability
OperatingLeaseLiability
27989000 usd
CY2022Q4 us-gaap Operating Lease Weighted Average Remaining Lease Term1
OperatingLeaseWeightedAverageRemainingLeaseTerm1
P7Y9M18D
CY2022 us-gaap Operating Lease Expense
OperatingLeaseExpense
7795000 usd
CY2021 us-gaap Operating Lease Expense
OperatingLeaseExpense
5658000 usd
CY2020 us-gaap Operating Lease Expense
OperatingLeaseExpense
3595000 usd
CY2022 zyme Fixed Lease Payment
FixedLeasePayment
6609000 usd
CY2021 zyme Fixed Lease Payment
FixedLeasePayment
5323000 usd
CY2020 zyme Fixed Lease Payment
FixedLeasePayment
3156000 usd
CY2022 us-gaap Variable Lease Payment
VariableLeasePayment
1186000 usd
CY2021 us-gaap Variable Lease Payment
VariableLeasePayment
335000 usd
CY2020 us-gaap Variable Lease Payment
VariableLeasePayment
439000 usd
CY2022 us-gaap Operating Lease Impairment Loss
OperatingLeaseImpairmentLoss
0 usd
CY2021 us-gaap Operating Lease Impairment Loss
OperatingLeaseImpairmentLoss
0 usd
CY2022Q4 us-gaap Assets Fair Value Disclosure
AssetsFairValueDisclosure
291609000 usd
CY2022Q4 us-gaap Financial Liabilities Fair Value Disclosure
FinancialLiabilitiesFairValueDisclosure
1248000 usd
CY2021Q4 us-gaap Assets Fair Value Disclosure
AssetsFairValueDisclosure
112128000 usd
CY2021Q4 us-gaap Financial Liabilities Fair Value Disclosure
FinancialLiabilitiesFairValueDisclosure
1498000 usd
CY2021Q4 zyme Contingent Consideration Liability Fair Value Disclosure
ContingentConsiderationLiabilityFairValueDisclosure
1498000 usd
CY2022 zyme Contingent Consideration Fair Value Adjustments
ContingentConsiderationFairValueAdjustments
0 usd
CY2022 zyme Contingent Consideration Liability Fair Value Disclosure Transfers
ContingentConsiderationLiabilityFairValueDisclosureTransfers
250000 usd
CY2022Q4 zyme Contingent Consideration Liability Fair Value Disclosure
ContingentConsiderationLiabilityFairValueDisclosure
1248000 usd
CY2020Q4 zyme Contingent Consideration Liability Fair Value Disclosure
ContingentConsiderationLiabilityFairValueDisclosure
1285000 usd
CY2021 zyme Contingent Consideration Fair Value Adjustments
ContingentConsiderationFairValueAdjustments
213000 usd
CY2021 zyme Contingent Consideration Liability Fair Value Disclosure Transfers
ContingentConsiderationLiabilityFairValueDisclosureTransfers
0 usd
CY2021Q4 zyme Contingent Consideration Liability Fair Value Disclosure
ContingentConsiderationLiabilityFairValueDisclosure
1498000 usd
CY2022 us-gaap Concentration Risk Credit Risk Financial Instrument Maximum Exposure
ConcentrationRiskCreditRiskFinancialInstrumentMaximumExposure
33400000 usd
CY2021 us-gaap Concentration Risk Credit Risk Financial Instrument Maximum Exposure
ConcentrationRiskCreditRiskFinancialInstrumentMaximumExposure
15614000 usd
CY2022Q4 zyme Net Monetary Assets Denominated In Foreign Currency
NetMonetaryAssetsDenominatedInForeignCurrency
-1593000 usd
CY2022Q4 zyme Net Monetary Assets Denominated In Foreign Currency
NetMonetaryAssetsDenominatedInForeignCurrency
-2144000 cad
CY2022 us-gaap Restructuring And Related Cost Number Of Positions Eliminated Period Percent
RestructuringAndRelatedCostNumberOfPositionsEliminatedPeriodPercent
0.25
CY2022Q4 us-gaap Restructuring Reserve
RestructuringReserve
678000 usd

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