Quarterly report pursuant to Section 13 or 15(d)

SETTLEMENT LIABILITY

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SETTLEMENT LIABILITY
 9 Months Ended
Sep. 30, 2024
Commitments and Contingencies Disclosure [Abstract]  
SETTLEMENT LIABILITY

NOTE 5 – SETTLEMENT LIABILITY

 

On November 12, 2021, the Company entered into a settlement agreement (“Settlement Agreement”) with the Company’s prior licensor REGENXBIO Inc. (“REGENXBIO”) to resolve all existing disputes between the parties. In accordance with the Settlement Agreement, the Company agreed to pay REGENXBIO a total of $30.0 million, payable as follows: (1) $20.0 million paid in November 2021 after execution of the Settlement Agreement, (2) $5.0 million on the first anniversary of the effective date of the Settlement Agreement (paid in November 2022), and (3) $5.0 million upon the earlier of (i) the third anniversary of the effective date of the Settlement Agreement or (ii) the closing of a Strategic Transaction, as defined in the Settlement Agreement.

 

As of September 30, 2024, the Company recorded the payable due to REGENXBIO in the condensed consolidated balance sheets based on the present value of the remaining payments due to REGENXBIO under the Settlement Agreement using an effective interest rate of 9.6%. The present value of the amount due in November 2024 was $4.9 million and $4.6 million as of September 30, 2024 and December 31, 2023, respectively. On November 13, 2024, the Company subsequently paid the remaining $5.0 million amount due per the Settlement Agreement.