0000950170-24-119809 | 10-Q | XBRL Viewer

Prepaid Expenses and Other Current Assets

9 Months Ended

Sep. 30, 2024

Prepaid Expense and Other Assets, Current [Abstract]

Prepaid Expenses and Other Current Assets

6. PREPAID EXPENSES AND OTHER CURRENT ASSETS

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


	September 30,		December 31,
	2024		2023
Research and development tax credit receivable	$	949	$	1,438
Prepaid insurance costs		89		774
Value-added tax refund receivable		256		280
Contract research and development costs		73		1,046
Other		133		85
Total prepaid expenses and other current assets	$	1,500	$	3,623

Summary of Significant Accounting Policies (Policies)	9 Months Ended
Summary of Significant Accounting Policies (Policies)	Sep. 30, 2024
Accounting Policies [Abstract]
Recently Issued Accounting Standards	Recently Issued Accounting Standards The Company periodically reviews new accounting standards that are issued and has not identified any new standards that it believes merit further discussion or would have a significant impact on its financial statements.

Net Loss Per Share - Schedule of Basic and Diluted Net Loss Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Earnings Per Share [Abstract]
Net Income (Loss)	$ (3,883)	$ (8,136)	$ (14,698)	$ (31,874)
Weighted-average number of shares used in computing net loss per common share, basic	1,144,978	1,084,191	1,104,849	1,055,679
Weighted-average number of shares used in computing net loss per common share, diluted	1,144,978	1,084,191	1,104,849	1,055,679
Net loss per common share, basic	$ (3.39)	$ (7.5)	$ (13.3)	$ (30.19)
Net loss per common share, diluted	$ (3.39)	$ (7.5)	$ (13.3)	$ (30.19)

- Definition

The amount of net income (loss) for the period per each share of common stock or unit outstanding during the reporting period.

+ References

+ Details

- Definition

The amount of net income (loss) for the period available to each share of common stock or common unit outstanding during the reporting period and to each share or unit that would have been outstanding assuming the issuance of common shares or units for all dilutive potential common shares or units outstanding during the reporting period.

+ References

+ Details

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

+ References

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+ Details

Condensed Consolidated Statements of Changes in Stockholders' Equity (Parenthetical) - USD ($) $ in Millions	3 Months Ended	9 Months Ended
	Sep. 30, 2024	Sep. 30, 2024	Sep. 30, 2023
Statement of Stockholders' Equity [Abstract]
Reverse stock split	1-for-25	1-for-25
Common stock issuance costs, net			$ 0.2

Income Taxes	9 Months Ended
Sep. 30, 2024
Income Tax Disclosure [Abstract]
Income Taxes	12. INCOME TAXES As a result of the Company's history of net operating losses ("NOL"), the Company continues to maintain a full valuation allowance against its domestic net deferred tax assets. For the three and nine months ended September 30, 2024, the Company recognized an income tax expense of $0.04 million, primarily due to foreign income tax expense.

Income Taxes

9 Months Ended

Sep. 30, 2024

Income Tax Disclosure [Abstract]

Income Taxes

12. INCOME TAXES

As a result of the Company's history of net operating losses ("NOL"), the Company continues to maintain a full valuation allowance against its domestic net deferred tax assets. For the three and nine months ended September 30, 2024, the Company recognized an income tax expense of $0.04 million, primarily due to foreign income tax expense.

- Definition

The entire disclosure for income tax.

+ References

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+ Details

Net Loss Per Share - Schedule of Antidilutive Securities Excluded from Calculation of Diluted Net Loss Per Share (Details) - shares	9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023
Stock Options to Purchase Common Stock
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share	182,206	292,010
Restricted Stock Units
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share	16,600

Description of Business, Organization and Liquidity - Additional Information (Details)		1 Months Ended			3 Months Ended		9 Months Ended		12 Months Ended
	Aug. 29, 2024	Jun. 30, 2024 USD ($)	May 31, 2024 People	Sep. 30, 2023 People	Sep. 30, 2024 USD ($)	Sep. 30, 2023 USD ($)	Sep. 30, 2024 USD ($)	Sep. 30, 2023 USD ($)	Dec. 31, 2023 USD ($)
Description Of Business Organization And Liquidity [Line Items]
Accumulated deficit					$ 270,783,000		$ 270,783,000		$ 256,085,000
Net loss					(3,900,000)	$ (8,100,000)	(14,698,000)	$ (31,874,000)
Cash flows from operating activities							(13,687,000)	(25,437,000)
Cash and cash equivalents					19,700,000		19,700,000
Cash, cash equivalents and marketable securities									33,200,000
Current assets					21,178,000		21,178,000		36,774,000
Current liabilities					2,441,000		2,441,000		5,830,000
Restructuring and additional reduction in force charges		$ 4,400,000					968,000		$ 3,448,000
Restructuring costs					$ 0	$ 2,728,000	$ 968,000	$ 2,728,000
Work force reduction precentage				70.00%
Number of employees reduced due to restructuring \| People			8	29
Reverse stock split, conversion ratio	0.04

Commitments and Contingencies

9 Months Ended

Sep. 30, 2024

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

9. COMMITMENTS AND CONTINGENCIES

During the three and nine months ended September 30, 2024, there were no material changes to the Company’s commitments and contingencies as disclosed in Note 9 of the 2023 Consolidated Financial Statements. Further, the Company’s commitments related to lease agreements are disclosed in Note 7 to the Company’s unaudited interim condensed consolidated financial statements included in this Quarterly Report on Form 10-Q.

Leases - Summary of Operating Leases (Details) - Copenhagen, Denmark	9 Months Ended
	Sep. 30, 2024
Operating Leased Assets [Line Items]
Operating lease, expiration date	Nov. 30, 2024
Operating lease,renewal option	None

Fair Value Measurements

9 Months Ended

Sep. 30, 2024

Fair Value Disclosures [Abstract]

Fair Value Measurements

5. FAIR VALUE MEASUREMENTS

Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value are performed in a manner to maximize the use of observable inputs and minimize the use of unobservable inputs.

The Company classified its money market funds within Level 1 because their fair values are based on their quoted market prices. The Company classified its debt securities within Level 2 because their fair values are determined using alternative pricing sources or models that utilized market observable inputs.

A summary of the assets that are measured at fair value as of September 30, 2024 and December 31, 2023 is as follows (in thousands):


	Fair Value Measurement at September 30, 2024
Assets:	Carrying Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Money market funds(1)	$	8,856	$	8,856	$	—	$	—
Debt securities		—		—		—		—
Total	$	8,856	$	8,856	$	—	$	—

	Fair Value Measurement at December 31, 2023
Assets:	Carrying Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Money market funds(1)	$	13,610		13,610		—		—
Debt securities		11,686		—		11,686		—
Total	$	25,296	$	13,610	$	11,686	$	—

(1)

Money market funds with maturities of 90 days or less at the date of purchase are included within cash and cash equivalents in the accompanying condensed consolidated balance sheets and are recognized at fair value.

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

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Reference 3: http://www.xbrl.org/2003/role/disclosureRef
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-Paragraph 2
-Subparagraph (c)(3)
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Reference 4: http://www.xbrl.org/2003/role/disclosureRef
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-Paragraph 6A
-Subparagraph (e)
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-Topic 820
-SubTopic 10
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-Paragraph 6A
-Subparagraph (d)
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-Name Accounting Standards Codification
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-Paragraph 1
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-Publisher FASB
-URI https://asc.fasb.org/1943274/2147478119/940-820-50-1

+ Details

Income Taxes - Additional Information (Details) - USD ($)	3 Months Ended	9 Months Ended
	Sep. 30, 2024	Sep. 30, 2024
Operating Loss Carryforwards [Line Items]
Income tax expense	$ 7,000	$ 49,000
United Kingdom
Operating Loss Carryforwards [Line Items]
Income tax expense	$ 0.04	$ 0.04

- Definition

Amount of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 270
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (i)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482964/270-10-50-1

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 32
-Subparagraph (ee)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482810/280-10-50-32

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 12
-Publisher FASB
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Reference 4: http://www.xbrl.org/2003/role/exampleRef
-Topic 740
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-Name Accounting Standards Codification
-Section 55
-Paragraph 231
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482663/740-10-55-231

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
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-Publisher FASB
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-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SAB Topic 6.I.7)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147479360/740-10-S99-1

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
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Reference 8: http://www.xbrl.org/2003/role/disclosureRef
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-Paragraph 10
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Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
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-Name Accounting Standards Codification
-Section 50
-Paragraph 22
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Reference 10: http://www.xbrl.org/2003/role/disclosureRef
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Reference 11: http://www.xbrl.org/2003/role/disclosureRef
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Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Name Accounting Standards Codification
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-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480678/235-10-S99-1

+ Details

Accrued Expenses And Other Current Liabilities (Tables)

9 Months Ended

Sep. 30, 2024

Payables and Accruals [Abstract]

Schedule of Accrued Expenses and Other Current Liabilities

Accrued expenses and other current liabilities consist of the following (in thousands):


	September 30,		December 31,
	2024		2023
Employee compensation costs	$	809	$	987
Contract research and development costs		247		685
Restructuring costs		230		1,734
Operating lease liabilities, current		32		183
Other liabilities		620		539
Total accrued expenses and other current liabilities	$	1,938	$	4,128

Fair Value Measurements (Tables)

9 Months Ended

Sep. 30, 2024

Fair Value Disclosures [Abstract]

Summary of Assets Measured at Fair Value

A summary of the assets that are measured at fair value as of September 30, 2024 and December 31, 2023 is as follows (in thousands):


	Fair Value Measurement at September 30, 2024
Assets:	Carrying Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Money market funds(1)	$	8,856	$	8,856	$	—	$	—
Debt securities		—		—		—		—
Total	$	8,856	$	8,856	$	—	$	—

	Fair Value Measurement at December 31, 2023
Assets:	Carrying Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Money market funds(1)	$	13,610		13,610		—		—
Debt securities		11,686		—		11,686		—
Total	$	25,296	$	13,610	$	11,686	$	—

(1)

Insider Trading Arrangements	3 Months Ended
Insider Trading Arrangements	Sep. 30, 2024
Trading Arrangements, by Individual
Rule 10b5-1 Arrangement Adopted	false
Non-Rule 10b5-1 Arrangement Adopted	false
Rule 10b5-1 Arrangement Terminated	false
Non-Rule 10b5-1 Arrangement Terminated	false
Non-Rule10b5-1 Arr Modified Flag	false
Rule10b5-1 Arr Modified Flag	false

Leases - Summary of Operating Lease Liabilities (Details) $ in Thousands	Sep. 30, 2024 USD ($)
Future Lease Payments
2024 (excluding the period ended September 30, 2024)	$ 33
Total lease payments	33
Less: imputed interest	(1)
Total lease liabilities	$ 32

Investments - Additional Information (Details)	9 Months Ended
Investments - Additional Information (Details)	Sep. 30, 2024 USD ($)
Investments, Debt and Equity Securities [Abstract]
Realised available-for-sale investments	$ 0

Leases - Additional Information (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023	Dec. 31, 2023
Leases [Line Items]
Rent expense	$ 50	$ 200	$ 200	$ 500
Weighted average remaining lease term for operating leases	2 months 12 days		2 months 12 days		10 months 24 days
Weighted average discount rate for operating leases	8.00%		8.00%		8.00%

Prepaid Expenses and Other Current Assets (Tables)

9 Months Ended

Sep. 30, 2024

Prepaid Expense and Other Assets, Current [Abstract]

Schedule of Prepaid Expenses and Other Current Assets

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


	September 30,		December 31,
	2024		2023
Research and development tax credit receivable	$	949	$	1,438
Prepaid insurance costs		89		774
Value-added tax refund receivable		256		280
Contract research and development costs		73		1,046
Other		133		85
Total prepaid expenses and other current assets	$	1,500	$	3,623

Investments

9 Months Ended

Sep. 30, 2024

Investments, Debt and Equity Securities [Abstract]

Investments

3. INVESTMENTS

Cash in excess of the Company’s immediate requirements is invested in accordance with the Company’s investment policy that primarily seeks to maintain adequate liquidity and preserve capital.

The Company had no available-for-sale investments as of September 30, 2024. A summary of the Company’s available-for-sale investments as of December 31, 2023 consisted of the following (in thousands):


	At December 31, 2023
	Amortized		Gross Unrealized		Gross Unrealized			Fair
Marketable securities:	Cost		Gains		Losses			Value
Corporate bonds	$	11,720	$	—	$	(34	)	$	11,686
Total	$	11,720	$	—	$	(34	)	$	11,686

Stock-Based Compensation (Tables)

9 Months Ended

Sep. 30, 2024

Share-Based Payment Arrangement [Abstract]

Summary of Stock Options Activity

The following table sets forth the activity for the Company’s stock options during the nine months ended September 30, 2024:


	Number of Options			Weighted- average exercise price per share		Weighted- average remaining contractual term (in years)		Aggregate intrinsic value
Outstanding at December 31, 2023		275,478		$	114.40		6.7	$	—
Granted		4,320			12.25		—		130
Cancelled		(97,593	)		103.56		—		—
Outstanding at September 30, 2024		182,205		$	117.78		6.3	$	—
Vested and expected to vest at September 30, 2024		172,493		$	116.87		6.3	$	—
Vested and exercisable at September 30, 2024		160,204		$	126.10		6.0	$	—

Summary of Stock-based Compensation Expense

The Company recorded stock-based compensation expense related to the issuance of stock as follows (in thousands):


	Three Months Ended September 30,				Nine Months Ended September 30,
	2024		2023		2024		2023
Research and development	$	70	$	712	$	887	$	2,082
General and administrative		611		752		2,044		2,255
Total stock-based compensation	$	681	$	1,464	$	2,931	$	4,337

Summary of Fair Value Assumptions of Options Granted

The fair values of the options granted were estimated using the following assumptions:


	Nine Months Ended
	September 30,
	2024			2023
Risk-free interest rate		4.2	%		3.8	%
Expected term (in years)		5.3			6.0
Expected volatility		99.3	%		91.0	%
Expected dividend yield		—			—

Schedule of Activity for RSUs

The following table sets forth the activity for the Company’s RSUs during the nine months ended September 30, 2024:


	Restricted Stock Units			Weighted- average grant date fair value
Total nonvested units at December 31, 2023		—		$	—
Granted		34,200			17.75
Vested		(6,828	)		17.75
Cancelled		(10,772	)		17.75
Total nonvested units at September 30, 2024		16,600		$	17.75

Stock-Based Compensation - Schedule of Activity for RSUs (Details) - Restricted Stock Units	9 Months Ended
	Sep. 30, 2024 $ / shares shares
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward]
Nonvested shares at the beginning of the period \| shares	0
Restricted stock units, Granted \| shares	34,200
Restricted stock units, Vested \| shares	(6,828)
Restricted stock units, Cancelled \| shares	(10,772)
Non vested shares at the end of the period \| shares	16,600
Weighted-averagegrant date fair value
Weighted average grant-date fair value per share, Non vested shares at the beginning of the period \| $ / shares	$ 0
Weighted average grant-date fair value per Share, Granted \| $ / shares	17.75
Weighted average grant-date fair value per Share, Vested \| $ / shares	17.75
Weighted average grant-date fair value per Share, Cancelled \| $ / shares	17.75
Weighted average grant-date fair value per share, Nonvested shares at the end of the period \| $ / shares	$ 17.75

Net Loss Per Share

9 Months Ended

Sep. 30, 2024

Earnings Per Share [Abstract]

Net Loss Per Share

13. NET LOSS PER SHARE

Basic and diluted net loss per share is calculated as follows (in thousands except share and per share amounts):


	Three Months Ended September 30,						Nine Months Ended September 30,
	2024			2023			2024			2023
Net loss	$	(3,883	)	$	(8,136	)	$	(14,698	)	$	(31,874	)
Weighted-average number of shares used in computing net loss per common share, basic and diluted		1,144,978			1,084,191			1,104,849			1,055,679
Net loss per common share, basic and diluted	$	(3.39	)	$	(7.50	)	$	(13.30	)	$	(30.19	)

The following outstanding potentially dilutive securities have been excluded from the calculation of diluted net loss per share, as their effect is anti-dilutive:


	Nine Months Ended September 30,
	2024		2023
Stock options to purchase common stock		182,206		292,010
Restricted stock units		16,600		—

Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares	Sep. 30, 2024	Dec. 31, 2023
Statement of Financial Position [Abstract]
Preferred stock, par value	$ 0.00001	$ 0.00001
Preferred stock, authorized	10,000,000	10,000,000
Preferred stock, issued	0	0
Preferred stock, outstanding	0	0
Common stock, par value	$ 0.00001	$ 0.00001
Common stock, authorized	300,000,000	300,000,000
Common stock, issued	1,253,843	1,084,508
Common stock, outstanding	1,253,843	1,084,508

Restructuring Activities - Additional Information (Details)	1 Months Ended		3 Months Ended		9 Months Ended		12 Months Ended
	May 31, 2024 People	Sep. 30, 2023 USD ($) People	Sep. 30, 2024 USD ($)	Sep. 30, 2023 USD ($)	Sep. 30, 2024 USD ($)	Sep. 30, 2023 USD ($)	Dec. 31, 2023 USD ($)
Restructuring Cost and Reserve [Line Items]
Number of employees reduced due to restructuring \| People	8	29
Restructuring costs			$ 0	$ 2,728,000	$ 968,000	$ 2,728,000
Employees retention bonus payable		$ 1,200,000
Retention accrual recognized					200,000		$ 400,000
Restructuring Plan
Restructuring Cost and Reserve [Line Items]
Restructuring plan, eliminated workforce		70.00%
Restructuring costs							3,400,000
Impairment charge related to leased facility							$ 30,000.00
May RIF
Restructuring Cost and Reserve [Line Items]
Restructuring costs			$ 1,000,000		$ 1,000,000

- Definition

Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table.

+ References + Details

Condensed Consolidated Statements of Operations and Comprehensive Loss - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Operating expenses
Research and development	$ 1,093,000	$ 2,551,000	$ 5,390,000	$ 21,002,000
General and administrative	2,747,000	3,304,000	8,800,000	9,504,000
Restructuring costs	0	2,728,000	968,000	2,728,000
Total operating expenses	3,840,000	8,583,000	15,158,000	33,234,000
Loss from operations	(3,840,000)	(8,583,000)	(15,158,000)	(33,234,000)
Other income, net
Interest income, net	146,000	473,000	616,000	1,349,000
Foreign exchange transaction gain (loss), net	(182,000)	(26,000)	(107,000)	11,000
Total other income, net	(36,000)	447,000	509,000	1,360,000
Loss before income tax expense	(3,876,000)	(8,136,000)	(14,649,000)	(31,874,000)
Income tax expense	7,000		49,000
Net loss	$ (3,883,000)	$ (8,136,000)	$ (14,698,000)	$ (31,874,000)
Net loss per common share, basic	$ (3.39)	$ (7.5)	$ (13.3)	$ (30.19)
Net loss per common share, diluted	$ (3.39)	$ (7.5)	$ (13.3)	$ (30.19)
Weighted-average number of shares used in computing net loss per common share, basic	1,144,978	1,084,191	1,104,849	1,055,679
Weighted-average number of shares used in computing net loss per common share, diluted	1,144,978	1,084,191	1,104,849	1,055,679
Other comprehensive income, net of tax
Currency translation gain	$ 468,000	$ 127,000	$ 251,000	$ 117,000
Unrealized gain on marketable securities		56,000	34,000	173,000
Other comprehensive income, net of tax	468,000	183,000	285,000	290,000
Total comprehensive loss	$ (3,415,000)	$ (7,953,000)	$ (14,413,000)	$ (31,584,000)

Stock-Based Compensation - Summary of Stock Options Activity (Details) - USD ($)	9 Months Ended	12 Months Ended
	Sep. 30, 2024	Dec. 31, 2023
Share-Based Payment Arrangement [Abstract]
Number of Options, Outstanding	275,478
Number of Options, Granted	4,320
Number of Options, Cancelled	(97,593)
Number of Options, Outstanding	182,205	275,478
Number of Options, Vested and expected to vest	172,493
Number of Options, Vested and exercisable	160,204
Weighted average exercise price per share, Outstanding	$ 114.4
Weighted average exercise price per share, Granted	12.25
Weighted average exercise price per share, Cancelled	103.56
Weighted average exercise price per share, Outstanding	117.78	$ 114.4
Weighted average exercise price per share, Vested and expected	116.87
Weighted average exercise price per share, Vested and exercisable	$ 126.1
Weighted average remaining contractual term (in years), Outstanding	6 years 3 months 18 days	6 years 8 months 12 days
Weighted average remaining contractual term (in years), Vested and expected to vest	6 years 3 months 18 days
Weighted average remaining contractual term (in years), Vested and exercisable	6 years
Aggregate intrinsic value, Granted	$ 130
Aggregate intrinsic value, Cancelled	0
Aggregate intrinsic value, Outstanding	0
Aggregate intrinsic value, Vested and expected to vest	0
Aggregate intrinsic value, Vested and exercisable	$ 0

Restructuring Activities (Tables)

9 Months Ended

Sep. 30, 2024

Restructuring and Related Activities [Abstract]

Summary of Restructuring Costs Pertaining to Restructuring Plan and May RIF

Restructuring costs pertaining to the Restructuring Plan and the May RIF consist of the following (in thousands):


	Nine Months Ended September 30, 2024
Balance at December 31, 2022	$	—
Restructuring expenses incurred		3,448
Payments		(1,593	)
Non-cash charges		(121	)
Balance at December 31, 2023		1,734
Restructuring expenses incurred		968
Payments		(2,472	)
Balance at September 30, 2024	$	230

Property and Equipment, Net - Summary of Property and Equipment (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Property Plant And Equipment [Line Items]
Total property and equipment	$ 107	$ 107
Less: accumulated depreciation	(45)	(29)
Equipment, net	$ 62	$ 78

Stock-Based Compensation - Summary of Fair Value Assumptions of Options Granted (Details)	9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023
Share-Based Payment Arrangement [Abstract]
Risk-free interest rate	4.20%	3.80%
Expected term (in years)	5 years 3 months 18 days	6 years
Expected volatility	99.30%	91.00%
Expected dividend yield	0.00%	0.00%

Document and Entity Information - shares	9 Months Ended
Document and Entity Information - shares	Sep. 30, 2024	Oct. 30, 2024
Cover [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Sep. 30, 2024
Document Fiscal Year Focus	2024
Document Fiscal Period Focus	Q3
Current Fiscal Year End Date	--12-31
Document Quarterly Report	true
Document Transition Report	false
Entity File Number	001-39655
Entity Registrant Name	GALECTO, INC.
Entity Central Index Key	0001800315
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	37-1957007
Entity Address, Address Line One	75 State Street
Entity Address, Address Line Two	Suite 100
Entity Address, City or Town	Boston
Entity Address, State or Province	MA
Entity Address, Postal Zip Code	02109
City Area Code	+45
Local Phone Number	70 70 52 10
Title of 12(b) Security	Common Stock, par value $0.00001 per share
Trading Symbol	GLTO
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	true
Entity Ex Transition Period	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		1,316,989

Restructuring Activities

9 Months Ended

Sep. 30, 2024

Restructuring and Related Activities [Abstract]

Restructuring Activities

11. RESTRUCTURING ACTIVITIES

In September 2023, the Company’s Board of Directors approved a restructuring plan (the “Restructuring Plan”) to reduce the Company’s operating costs and better align its workforce with the needs of its business. The Restructuring Plan eliminated approximately 70% of the Company’s workforce. In May 2024, the Company's Board of Directors approved an additional reduction of eight employees in an effort to conserve cash resources (the “May RIF”).

Employees affected by the Restructuring Plan and the May RIF obtained involuntary termination benefits pursuant to a one-time benefit arrangement. For employees who have no requirements to provide future service, the Company recognized the liability for the termination benefits in full at fair value at the time of termination. For employees who are required to render services beyond a minimum retention period to receive their one-time termination benefits, the Company recognized the termination benefits ratably over their future service periods. For the Restructuring Plan, the Company recorded employee termination benefit charges during the year ended December 31, 2023 of $3.4 million and has included such charges as operating expenses in the Condensed Consolidated Statements of Operations and Comprehensive Loss. For the May RIF, the Company recorded employee termination benefit charges during the three and nine months ended September 30, 2024 of $1.0 million and has included such charges as operating expenses in the Condensed Consolidated Statements of Operations and Comprehensive Loss.

Restructuring costs pertaining to the Restructuring Plan and the May RIF consist of the following (in thousands):


	Nine Months Ended September 30, 2024
Balance at December 31, 2022	$	—
Restructuring expenses incurred		3,448
Payments		(1,593	)
Non-cash charges		(121	)
Balance at December 31, 2023		1,734
Restructuring expenses incurred		968
Payments		(2,472	)
Balance at September 30, 2024	$	230

The Company incurred an impairment charge related to a leased facility of $0.03 million during the year ended December 31, 2023 resulting from the Restructuring Plan.

In September 2023, the Board of Directors approved arrangements designed to provide that the Company will have the continued dedication and commitment of its remaining employees, including executives, determined to be key to the Company’s planned go-forward operations. The Board of Directors approved, and management implemented, a retention program for employees remaining with the Company which includes cash retention bonuses totaling $1.2 million for certain retained employees, provided that they remain within the Company through various requisite service periods. As a result, these cash retention bonuses are being accrued over the requisite service period. The Company’s arrangement with its Chief Executive Officer specified that he was only entitled to a cash bonus upon the timely achievement of certain corporate and strategic milestones for the Company, which were not achieved by September 30, 2024. During the period ended September 30, 2024, the Company's retention accrual was $0.2 million. During the year ended December 31, 2023, the Company's retention accrual was $0.4 million.

Leases

9 Months Ended

Sep. 30, 2024

Leases [Abstract]

Leases

7. LEASES

The Company has the following operating leases:


Location	Primary Use	Lease Expiration Date	Renewal Option
Copenhagen, Denmark	Corporate headquarters	November 2024	None

The Company has no finance leases and has elected to apply the short-term lease exception to all leases of one year or less. Rent expense for the three and nine months ended September 30, 2024 was $0.05 million and $0.2 million, respectively. Rent expense for the three and nine months ended September 30, 2023 was $0.2 million and $0.5 million, respectively.

Quantitative information regarding the Company’s leases for the three and nine months ended September 30, 2024 and 2023 was as follows:


	Three Months Ended September 30,				Nine Months Ended September 30,
Lease Cost	2024		2023		2024		2023
Operating lease cost (in thousands)	$	49	$	135	$	192	$	411
Other Information
Operating cash flows paid for amounts included in the measurement of lease liabilities (in thousands)	$	50	$	121	$	190	$	394
Operating lease liabilities arising from obtaining right-of-use assets (in thousands)	$	—	$	—	$	—	$	—

As of September 30, 2024 and December 31, 2023, the weighted average remaining lease term for operating leases was 0.2 years and 0.9 years, respectively.

As of September 30, 2024 and December 31, 2023, the weighted average discount rate for operating leases was 8% for both periods.

Operating lease liabilities at September 30, 2024 are as follows (in thousands):


	Operating
Future Lease Payments	Leases
2024 (excluding the period ended September 30, 2024)	$	33
2025		—
2026		—
2027		—
2028		—
Total lease payments		33
Less: imputed interest		(1	)
Total lease liabilities	$	32

Subsequent Events

9 Months Ended

Sep. 30, 2024

Subsequent Events [Abstract]

Subsequent Events

14. SUBSEQUENT EVENTS

On October 7, 2024, the Company entered into an Asset Purchase Agreement (the “Purchase Agreement”) with Bridge Medicines pursuant to which the Company acquired global rights to Bridge Medicines’ BRM-1420 program, a novel dual ENL-YEATS and FLT3 inhibitor for multiple genetic subsets of AML, and assumed certain of Bridge Medicines’ liabilities associated with the acquired assets (the “Asset Purchase”). As consideration to Bridge Medicines for the Asset Purchase, the Company (a) issued to Bridge Medicines (i) 62,594 shares of the Company’s common stock and (ii) 160.562 shares of the Company’s newly designated Series A non-voting convertible preferred stock, par value $0.00001 per share (the “Preferred Stock”) and (b) assumed specified liabilities. The closing of the Asset Purchase occurred on October 7, 2024. The total cost of the Asset Purchase was $4.4 million, including the fair value of the common stock, the fair value of the convertible preferred stock, the assumed specified liabilities and transaction costs.

The terms of the Preferred Stock are as set forth in the Certificate of Designation of Preferences, Rights and Limitations of Series A Non-Voting Convertible Preferred Stock. Each share of Preferred Stock is convertible into 1,000 shares of common stock at the election of the holder of such Preferred Stock, subject to, and contingent upon, the approval by the Company’s stockholders to approve, for purposes of the Nasdaq Stock Market Rules, the issuance of the Company’s common stock upon conversion of the Preferred Stock (the “Stockholder Approval”). Furthermore, on the third business day following the Company’s receipt of Stockholder Approval, each outstanding share of Preferred Stock shall, subject to certain beneficial ownership limitations, automatically convert into 1,000 shares of common stock upon the conversion terms set forth in the Certificate of Designation. Except as required by law, the Preferred Stock has no voting rights, provided that the Company shall not, without the affirmative vote or written consent of the holders of majority of then outstanding Preferred Stock, among other things, alter or change adversely the power, preferences or rights given to the Preferred Stock, amend the Certificate of Designation, issue additional shares of Preferred Stock, consummate certain transactions prior to Stockholder Approval, amend or terminate the support agreements entered into by the Company’s directors and officers, or amend or fail to comply with certain provisions of the Purchase Agreement.

Carl Goldfischer, Chairman of the Company’s Board of Directors is also the Executive Chairman of Bridge Medicines.

Subsequent Event - Additional Information (Details) - USD ($) $ / shares in Units, $ in Millions	Oct. 07, 2024	Sep. 30, 2024	Dec. 31, 2023
Subsequent Event [Line Items]
Common stock, issued		1,253,843	1,084,508
Common stock, par value		$ 0.00001	$ 0.00001
Preferred stock, issued		0	0
Preferred stock, par value		$ 0.00001	$ 0.00001
Subsequent Event \| Bridge Medicines
Subsequent Event [Line Items]
Common stock, issued	62,594
Total cost of asset purchase	$ 4.4
Subsequent Event \| Series A Non Voting Convertible Preferred Stock
Subsequent Event [Line Items]
Number of preferred stock converted into common stock	1,000
Subsequent Event \| Series A Non Voting Convertible Preferred Stock \| Bridge Medicines
Subsequent Event [Line Items]
Preferred stock, issued	160.562
Preferred stock, par value	$ 0.00001

Condensed Consolidated Statements of Cash Flows - USD ($)	9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023
Cash flows from operating activities:
Net loss	$ (14,698,000)	$ (31,874,000)
Adjustment to reconcile net loss to net cash used in operating activities:
Depreciation	16,000	246,000
Stock-based compensation	2,931,000	4,337,000
Issuance of common stock in connection with vesting of restricted stock units	86,000
Amortization of premiums and discounts on marketable securities	70,000	(406,000)
Amortization of right of use lease asset	219,000	355,000
Accretion of lease liability	9,000	40,000
Changes in operating assets and liabilities:
Prepaid expenses and other current assets	2,121,000	812,000
Other assets, noncurrent	(974,000)	(141,000)
Accounts payable	(1,199,000)	1,127,000
Accrued expenses and other current liabilities	(2,040,000)	445,000
Operating lease liabilities	(228,000)	(378,000)
Net cash used in operating activities	(13,687,000)	(25,437,000)
Cash flows from investing activities:
Purchases of marketable securities		(25,937,000)
Proceeds from sale of marketable securities	11,650,000	38,687,000
Net cash provided by investing activities	11,650,000	12,750,000
Cash flows from financing activities:
Proceed from issuance of common stock, net of issuance costs		2,876,000
Net cash provided by financing activities		2,876,000
Net decrease in cash and cash equivalents	(2,037,000)	(9,811,000)
Effect of exchange rate changes on cash and cash equivalents	250,000	103,000
Cash and cash equivalents, beginning of period	21,465,000	32,786,000
Cash and cash equivalents, end of period	$ 19,678,000	$ 23,078,000

Stock-Based Compensation - Summary of Stock-based Compensation Expenses Related to Issuance of Stock (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total stock-based compensation	$ 681	$ 1,464	$ 2,931	$ 4,337
Research and Development
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total stock-based compensation	70	712	887	2,082
General and Administrative
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total stock-based compensation	$ 611	$ 752	$ 2,044	$ 2,255

- Definition

Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table.

+ References

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+ Details

Accrued Expenses and Other Current Liabilities - Schedule of Accrued Expenses and Other Current Liabilities (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023	Dec. 31, 2022
Payables and Accruals [Abstract]
Employee compensation costs	$ 809	$ 987
Contract research and development costs	247	685
Restructuring costs	230	1,734	$ 0
Operating lease liabilities, current	$ 32	$ 183
Operating Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration]	Accrued Liabilities and Other Liabilities	Accrued Liabilities and Other Liabilities
Other liabilities	$ 620	$ 539
Total accrued expenses and other current liabilities	$ 1,938	$ 4,128

Investments - Summary of Available-for-Sale Investments (Details) $ in Thousands	Dec. 31, 2023 USD ($)
Schedule of Available for Sale Securities [Line Items]
Debt Securities, Available-for-sale, Type [Extensible List]	us-gaap:CorporateDebtSecuritiesMember
Investments - Current
Schedule of Available for Sale Securities [Line Items]
Amortized Cost	$ 11,720
Gross Unrealized Losses	(34)
Fair Value	$ 11,686

- Definition

Amount of investment in debt security measured at fair value with change in fair value recognized in other comprehensive income (available-for-sale).

+ References

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- Definition

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+ References

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+ Details

Net Loss Per Share (Tables)

9 Months Ended

Sep. 30, 2024

Earnings Per Share [Abstract]

Schedule of Basic and Diluted Net Loss Per Share

Basic and diluted net loss per share is calculated as follows (in thousands except share and per share amounts):


	Three Months Ended September 30,						Nine Months Ended September 30,
	2024			2023			2024			2023
Net loss	$	(3,883	)	$	(8,136	)	$	(14,698	)	$	(31,874	)
Weighted-average number of shares used in computing net loss per common share, basic and diluted		1,144,978			1,084,191			1,104,849			1,055,679
Net loss per common share, basic and diluted	$	(3.39	)	$	(7.50	)	$	(13.30	)	$	(30.19	)

Schedule of Antidilutive Securities Excluded from Calculation of Diluted Net Loss Per Share

The following outstanding potentially dilutive securities have been excluded from the calculation of diluted net loss per share, as their effect is anti-dilutive:


	Nine Months Ended September 30,
	2024		2023
Stock options to purchase common stock		182,206		292,010
Restricted stock units		16,600		—

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Current assets
Cash and cash equivalents	$ 19,678	$ 21,465
Marketable securities		11,686
Prepaid expenses and other current assets	1,500	3,623
Total current assets	21,178	36,774
Operating lease right-of-use asset	32	247
Equipment, net	62	78
Other assets, non-current	2,104	1,128
Total assets	23,376	38,227
Current liabilities
Accounts payable	503	1,702
Accrued expenses and other current liabilities	1,938	4,128
Total current liabilities	2,441	5,830
Operating lease liabilities, non-current		66
Total liabilities	2,441	5,896
Commitments and contingencies (Note 9)
Stockholders’ equity
Preferred stock, par value of $0.00001 per share; 10,000,000 shares authorized at September 30, 2024 and December 31, 2023; no shares issued or outstanding as of September 30, 2024 and December 31, 2023
Common stock, par value of $0.00001 per share; 300,000,000 shares authorized at September 30, 2024 and December 31, 2023; 1,253,843 and 1,084,508 shares issued and outstanding at September 30, 2024 and December 31, 2023, respectively
Additional paid-in capital	291,053	288,036
Accumulated deficit	(270,783)	(256,085)
Accumulated other comprehensive income	665	380
Total stockholders’ equity	20,935	32,331
Total liabilities and stockholders' equity	$ 23,376	$ 38,227

Leases - Quantitative Information Regarding Leases (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Lease Cost
Operating lease cost (in thousands)	$ 49	$ 135	$ 192	$ 411
Operating cash flows paid for amounts included in the measurement of lease liabilities (in thousands)	$ 50	$ 121	$ 190	$ 394

Property and Equipment, Net - Additional Information (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Property, Plant and Equipment [Abstract]
Depreciation expense	$ 6,000	$ 211,000	$ 16,000	$ 246,000

Stock-Based Compensation - Additional Information (Details) $ / shares in Units, $ in Thousands		1 Months Ended		3 Months Ended		9 Months Ended		12 Months Ended
	Aug. 29, 2024	Jan. 31, 2024 shares	Oct. 31, 2020 shares	Sep. 30, 2024 USD ($) $ / shares shares	Sep. 30, 2023 USD ($) shares	Sep. 30, 2024 USD ($) $ / shares shares	Sep. 30, 2023 USD ($) shares	Dec. 31, 2023 $ / shares	Nov. 30, 2022 shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Issuance and sale of common stock \| $					$ 171		$ 2,876
Number of options, granted						4,320
Reverse stock split, conversion ratio	0.04
Compensation expense recognized \| $				$ 681	$ 1,464	$ 2,931	4,337
Restricted Stock Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Restricted stock units, Granted						34,200
Weighted- average grant-date fair value \| $ / shares				$ 17.75		$ 17.75		$ 0
Compensation expense recognized \| $				$ 99,000		$ 193,000
Restricted Stock Units \| One Year Milestone
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock options, vesting period						1 year
Vesting percentage						33.00%
Restricted Stock Units \| Every Six Months Thereafter
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock options, vesting period						6 months
Vesting percentage						17.00%
Stock Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Weighted-average grant date fair value of stock options granted \| $ / shares						$ 9.47
Intrinsic value per share of stock options \| $ / shares						$ 12.15		$ 18
Fair value of stock options vested \| $						$ 3,000	$ 5,000
2020 Plan \| Employee Stock Option
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation expense \| $				$ 800		$ 800
2020 Plan \| Stock Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares available for future grant			0
2020 Equity Incentive Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares available for future grant				164,785		164,785
2020 Equity Incentive Plan \| Employee Stock Option
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation expense that is expected to be recognized over a weighted-average period						1 year 2 months 12 days
2020 Equity Incentive Plan \| Employees
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Restricted stock units, Granted		34,200
2020 Equity Incentive Plan \| Time-Based Restricted Stock Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Weighted- average grant-date fair value \| $ / shares				$ 17.75		$ 17.75
2020 Equity Incentive Plan \| Stock Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock options, vesting period			4 years
Stock options, expiration period			10 years
Percentage increase of number of shares of common stock issued and outstanding			5.00%
Common Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of aggregate shares of common stock sold					3,632		58,412
Common Stock \| 2022 Inducement Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares available for future grant									10,000
Shares issued						0

Property and Equipment, Net

9 Months Ended

Sep. 30, 2024

Property, Plant and Equipment [Abstract]

Property and Equipment, Net

4. PROPERTY AND EQUIPMENT, NET

Property and equipment as of September 30, 2024 consisted of the following (in thousands):


	September 30,			December 31,
	2024			2023
Equipment	$	107		$	107
Less: accumulated depreciation		(45	)		(29	)
Equipment, net	$	62		$	78

Depreciation expense for the three and nine months ended September 30, 2024 was $6,000 and $16,000, respectively. Depreciation expense for the three and nine months ended September 30, 2023 was $211,000 and $246,000, respectively.

Restructuring Activities - Summary of Restructuring Costs Pertaining to Restructuring Plan and May RIF (Details) - USD ($) $ in Thousands	1 Months Ended	9 Months Ended	12 Months Ended
	Jun. 30, 2024	Sep. 30, 2024	Dec. 31, 2023
Restructuring Costs [Abstract]
Restructuring costs, beginning balance		$ 1,734	$ 0
Restructuring expenses incurred	$ 4,400	968	3,448
Payments		(2,472)	(1,593)
Non-cash charges			(121)
Restructuring costs, ending balance		$ 230	$ 1,734

Property and Equipment, Net (Tables)

9 Months Ended

Sep. 30, 2024

Property, Plant and Equipment [Abstract]

Summary of Property and Equipment

Property and equipment as of September 30, 2024 consisted of the following (in thousands):


	September 30,			December 31,
	2024			2023
Equipment	$	107		$	107
Less: accumulated depreciation		(45	)		(29	)
Equipment, net	$	62		$	78

Fair Value Measurements - Summary of Assets Measured at Fair Value (Details) - USD ($)
$ in Thousands

Sep. 30, 2024

Dec. 31, 2023

Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]

Assets fair value

$ 8,856

$ 25,296

Money Market Funds

Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]

Assets fair value

^[1]

8,856

13,610

Debt Securities

Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]

Assets fair value

11,686

Level 1

Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]

Assets fair value

8,856

13,610

Level 1 | Money Market Funds

Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]

Assets fair value

^[1]

$ 8,856

13,610

Level 2

Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]

Assets fair value

11,686

Level 2 | Debt Securities

Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]

Assets fair value

$ 11,686

[1]	Money market funds with maturities of 90 days or less at the date of purchase are included within cash and cash equivalents in the accompanying condensed consolidated balance sheets and are recognized at fair value.

Prepaid Expenses and Other Current Assets - Schedule of Prepaid Expenses and Other Current Assets (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Prepaid Expense and Other Assets, Current [Abstract]
Research and development tax credit receivable	$ 949	$ 1,438
Prepaid insurance costs	89	774
Value-added tax refund receivable	256	280
Contract research and development costs	73	1,046
Other	133	85
Total prepaid expenses and other current assets	$ 1,500	$ 3,623

Pay vs Performance Disclosure - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
Pay vs Performance Disclosure - USD ($) $ in Thousands	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Pay vs Performance Disclosure
Net Income (Loss)	$ (3,883)	$ (8,136)	$ (14,698)	$ (31,874)

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

+ References

+ Details

Investments (Tables)

9 Months Ended

Sep. 30, 2024

Investments, Debt and Equity Securities [Abstract]

Summary of Available-for-Sale Investments

A summary of the Company’s available-for-sale investments as of December 31, 2023 consisted of the following (in thousands):


	At December 31, 2023
	Amortized		Gross Unrealized		Gross Unrealized			Fair
Marketable securities:	Cost		Gains		Losses			Value
Corporate bonds	$	11,720	$	—	$	(34	)	$	11,686
Total	$	11,720	$	—	$	(34	)	$	11,686

- Definition

Tabular disclosure of investment in debt security measured at fair value with change in fair value recognized in other comprehensive income (available-for-sale).

+ References

Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 320
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 9
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481800/320-10-50-9

Reference 2: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 320
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 3
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481800/320-10-50-3

Reference 3: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 320
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481800/320-10-50-2

Reference 4: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 320
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (c)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481800/320-10-50-2

Reference 5: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 320
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481800/320-10-50-2

Reference 6: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 320
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (aa)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481800/320-10-50-2

Reference 7: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 320
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (aaa)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481800/320-10-50-2

Reference 8: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 320
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (d)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481800/320-10-50-2

Reference 9: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 320
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 3
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481800/320-10-50-3

Reference 10: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 320
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 3
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481800/320-10-50-3

Reference 11: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 320
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 3
-Subparagraph (c)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481800/320-10-50-3

Reference 12: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 320
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 3
-Subparagraph (d)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481800/320-10-50-3

+ Details

Stock-Based Compensation

9 Months Ended

Sep. 30, 2024

Share-Based Payment Arrangement [Abstract]

Stock-Based Compensation

10. STOCK-BASED COMPENSATION

Employee Equity Plan

In March 2020, the Company's Board of Directors and stockholders approved the 2020 Stock Option and Grant Plan (“2020 Plan”). Holders of stock options under the 2020 Plan shall be entitled to exercise the vested portion of the stock option during the term of the grant. If a qualified exit, as defined in the 2020 Plan, occurs before the stock option vests, then all of the holders' unvested options shall vest immediately.

In October 2020, the Company's Board of Directors and stockholders approved the 2020 Equity Incentive Plan (“2020 Equity Plan”). Following the adoption of the 2020 Equity Plan, no further options are available to be issued under the 2020 Plan. Stock-based awards granted under the 2020 Equity Plan generally vest over a four-year period and expire ten years from the grant date. Shares available for grant under the 2020 Equity Plan will cumulatively increase by 5 percent of the number of shares of common stock issued and outstanding on January 1st each year until 2030. At September 30, 2024, the Company had 164,785 shares available for future grant under the 2020 Equity Plan.

The following table sets forth the activity for the Company’s stock options during the nine months ended September 30, 2024:


	Number of Options			Weighted- average exercise price per share		Weighted- average remaining contractual term (in years)		Aggregate intrinsic value
Outstanding at December 31, 2023		275,478		$	114.40		6.7	$	—
Granted		4,320			12.25		—		130
Cancelled		(97,593	)		103.56		—		—
Outstanding at September 30, 2024		182,205		$	117.78		6.3	$	—
Vested and expected to vest at September 30, 2024		172,493		$	116.87		6.3	$	—
Vested and exercisable at September 30, 2024		160,204		$	126.10		6.0	$	—

The weighted-average grant date fair value of all stock-based awards granted for the nine months ended September 30, 2024 was $9.47 per share. The intrinsic value at September 30, 2024 and December 31, 2023 was based on the closing price of the Company’s common stock on these dates of $12.15 and $18.00 per share, respectively.

In November 2022, the Company's Board of Directors approved the 2022 Inducement Plan (the “Inducement Plan”), which allows for the grant of equity awards to be made to new employees where the equity award is a material inducement to an employee entering into employment with the Company. The Inducement Plan was adopted by the Company's Board of Directors without stockholder

approval pursuant to Nasdaq Listing Rule 5635(c)(4). A total of 10,000 shares of the Company's common stock have been reserved for issuance under the Inducement Plan. As of September 30, 2024, no shares have been issued under the Inducement Plan.

Restricted Stock Units

In January 2024, the Company granted 34,200 restricted stock units (“RSUs”) to its employees under the 2020 Equity Plan. The weighted average grant date fair value of the time-based RSUs was $17.75 for the nine months ended September 30, 2024.The RSUs vest 33% after one-year from the grant date and 17% every six-months thereafter, subject to continued service to the Company through the applicable vesting dates. For the three and nine months ended September 30, 2024, the Company recognized $99,000 and $193,000 expense related to the RSUs, respectively.

The following table sets forth the activity for the Company’s RSUs during the nine months ended September 30, 2024:


	Restricted Stock Units			Weighted- average grant date fair value
Total nonvested units at December 31, 2023		—		$	—
Granted		34,200			17.75
Vested		(6,828	)		17.75
Cancelled		(10,772	)		17.75
Total nonvested units at September 30, 2024		16,600		$	17.75

Stock-Based Compensation

The grant date fair value of stock-based awards vested during the nine months ended September 30, 2024 and 2023 was $3.0 million and $5.0 million, respectively. Total unrecognized compensation expense related to unvested options granted under the Company’s stock-based compensation plan was $0.8 million at September 30, 2024, which is expected to be recognized over a weighted average period of 1.2 years. The Company recorded stock-based compensation expense related to the issuance of stock as follows (in thousands):


	Three Months Ended September 30,				Nine Months Ended September 30,
	2024		2023		2024		2023
Research and development	$	70	$	712	$	887	$	2,082
General and administrative		611		752		2,044		2,255
Total stock-based compensation	$	681	$	1,464	$	2,931	$	4,337

The Company uses a Black-Scholes option pricing model to determine fair value of its stock options. The Black-Scholes option pricing model includes various assumptions, including the fair value of common stock, expected life of stock options, the expected volatility based on the historical volatility of a publicly traded set of peer companies and the expected risk-free interest rate based on the implied yield on a U.S. Treasury security.

The fair values of the options granted were estimated using the following assumptions:


	Nine Months Ended
	September 30,
	2024			2023
Risk-free interest rate		4.2	%		3.8	%
Expected term (in years)		5.3			6.0
Expected volatility		99.3	%		91.0	%
Expected dividend yield		—			—

Leases (Tables)

9 Months Ended

Sep. 30, 2024

Leases [Abstract]

Summary of Operating Leases

The Company has the following operating leases:


Location	Primary Use	Lease Expiration Date	Renewal Option
Copenhagen, Denmark	Corporate headquarters	November 2024	None

Quantitative Information Regarding Leases

Quantitative information regarding the Company’s leases for the three and nine months ended September 30, 2024 and 2023 was as follows:


	Three Months Ended September 30,				Nine Months Ended September 30,
Lease Cost	2024		2023		2024		2023
Operating lease cost (in thousands)	$	49	$	135	$	192	$	411
Other Information
Operating cash flows paid for amounts included in the measurement of lease liabilities (in thousands)	$	50	$	121	$	190	$	394
Operating lease liabilities arising from obtaining right-of-use assets (in thousands)	$	—	$	—	$	—	$	—

Summary of Operating Lease Liabilities

Operating lease liabilities at September 30, 2024 are as follows (in thousands):


	Operating
Future Lease Payments	Leases
2024 (excluding the period ended September 30, 2024)	$	33
2025		—
2026		—
2027		—
2028		—
Total lease payments		33
Less: imputed interest		(1	)
Total lease liabilities	$	32

Condensed Consolidated Statements of Changes in Stockholders' Equity - USD ($) $ in Thousands	Total	Common Stock	Additional Paid-In Capital	Accumulated Deficit	Accumulated Other Comprehensive Income (Loss)
Beginning balance at Dec. 31, 2022	$ 61,753		$ 279,733	$ (217,736)	$ (244)
Beginning balance (in shares) at Dec. 31, 2022		1,026,096
Stock-based compensation expense	4,337		4,337
Issuance of common stock; net of issuance costs	2,876		2,876
Issuance of common stock; net of issuance costs (in shares)		58,412
Other comprehensive income, net	290				290
Net Income (Loss)	(31,874)			(31,874)
Ending balance at Sep. 30, 2023	37,382		286,946	(249,610)	46
Ending balance (in shares) at Sep. 30, 2023		1,084,508
Beginning balance at Jun. 30, 2023	43,700		285,311	(241,474)	(137)
Beginning balance (in shares) at Jun. 30, 2023		1,080,876
Stock-based compensation expense	1,464		1,464
Issuance of common stock; net of issuance costs	171		171
Issuance of common stock; net of issuance costs (in shares)		3,632
Other comprehensive income, net	183				183
Net Income (Loss)	(8,136)			(8,136)
Ending balance at Sep. 30, 2023	37,382		286,946	(249,610)	46
Ending balance (in shares) at Sep. 30, 2023		1,084,508
Beginning balance at Dec. 31, 2023	32,331		288,036	(256,085)	380
Beginning balance (in shares) at Dec. 31, 2023		1,084,507
Stock-based compensation expense	2,931		2,931
Issuance of common stock in connection with vesting of restricted stock units	86		86
Issuance of common stock in connection with vesting of restricted stock units, (in shares)		6,278
Round-up shares from the 1-for-25 reverse split effective August 29, 2024 (in shares)		163,058
Other comprehensive income, net	285				285
Net Income (Loss)	(14,698)			(14,698)
Ending balance at Sep. 30, 2024	20,935		291,053	(270,783)	665
Ending balance (in shares) at Sep. 30, 2024		1,253,843
Beginning balance at Jun. 30, 2024	23,588		290,291	(266,900)	197
Beginning balance (in shares) at Jun. 30, 2024		1,084,840
Stock-based compensation expense	681		681
Issuance of common stock in connection with vesting of restricted stock units	81		81
Issuance of common stock in connection with vesting of restricted stock units, (in shares)		5,945
Round-up shares from the 1-for-25 reverse split effective August 29, 2024 (in shares)		163,058
Other comprehensive income, net	468				468
Net Income (Loss)	(3,883)			(3,883)
Ending balance at Sep. 30, 2024	$ 20,935		$ 291,053	$ (270,783)	$ 665
Ending balance (in shares) at Sep. 30, 2024		1,253,843

Description of Business, Organization and Liquidity

9 Months Ended

Sep. 30, 2024

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Description of Business, Organization and Liquidity

1. DESCRIPTION OF BUSINESS, ORGANIZATION AND LIQUIDITY

Business and Organization

Galecto, Inc., together with its consolidated subsidiaries (the “Company” or “Galecto”), is a clinical-stage biotechnology company developing novel therapeutics that are designed to target the biological processes that lie at the heart of fibrotic diseases and cancer. The Company’s focus is on the development of small molecule inhibitors for the treatment of cancer and severe liver diseases.

As of September 30, 2024, the Company’s wholly owned subsidiaries were PharmAkea, Inc., a Delaware corporation (“PharmAkea”), Galecto Securities Corporation, a Massachusetts corporation, and Galecto Biotech AB, a Swedish company. Galecto Biotech ApS, a Danish operating company, is a wholly-owned subsidiary of Galecto Biotech AB.

Strategic Shift in Business Strategy

In September 2023, the Company undertook an organizational restructuring and determined to conduct a comprehensive exploration of strategic alternatives. In consultation with experienced financial and legal advisors, a comprehensive strategic alternative review process began immediately and evaluated a broad range of options to maximize shareholder value through broad outreach to life sciences companies and a thorough process of evaluation of prospective strategic partners. This review of strategic alternatives resulted in the execution of the Asset Purchase Agreement (as defined below) in October 2024 with Bridge Medicines LLC (“Bridge Medicines”) to acquire the global rights to Bridge Medicines’ BRM-1420 program, a novel dual ENL-YEATS and FLT3 inhibitor for multiple genetic subsets of acute myeloid leukemia (“AML”), and assumed certain of Bridge Medicines’ liabilities associated with the acquired assets (the “Asset Purchase”). For additional details, see Note 14 to the Company’s unaudited interim condensed consolidated financial statements included in this Quarterly Report on Form 10-Q.

As a result of the conclusion of the strategic alternatives review process, the Company’s focus is now on the development of GB1211 and the addition of BRM-1420 from Bridge Medicines. As part of the strategic alternative review process, the Company determined not to further advance GB2064, its LOXL-2 inhibitor candidate, at this time.

Risks and Uncertainties

The Company is subject to risks common to companies in the biotechnology industry, including, but not limited to, new technological innovations, protection of proprietary technology, dependence on key personnel, compliance with government regulations and the need to obtain additional financing. Product candidates currently under development will require significant additional research and development efforts, including extensive preclinical and clinical testing and regulatory approval, prior to commercialization. These efforts require significant amounts of additional capital, adequate personnel infrastructure and extensive compliance reporting capabilities.

The Company’s product candidates are in development. There can be no assurance that the Company’s research and development will be successfully completed, that adequate protection for the Company’s intellectual property will be obtained, that any products developed will obtain necessary government regulatory approval or that any approved products will be commercially viable. Even if the Company’s product development efforts are successful, it is uncertain when, if ever, the Company will generate significant revenue from product sales. The Company operates in an environment of rapid change in technology and substantial competition from pharmaceutical and biotechnology companies. In addition, the Company is dependent upon the services of its employees and consultants.

Liquidity and Management Plans

Since inception, the Company has devoted substantially all its efforts to business planning, research and development, recruiting management and technical staff and raising capital, and has financed its operations primarily through the issuance of redeemable convertible preferred shares, debt financings, the Company’s initial public offering and sales of the Company's common stock in "at-the-market" offerings.

As of September 30, 2024, the Company had an accumulated deficit of $270.8 million from recurring losses since inception in 2011. The Company has incurred recurring losses and has not generated revenue as no products have obtained the necessary regulatory approval in order to market products. The Company expects to continue to incur losses as a result of costs and expenses related to the

Company’s clinical development and corporate general and administrative activities. The Company had negative cash flows from operating activities during the nine months ended September 30, 2024 and 2023 of $13.7 million and $25.4 million, respectively, and current projections indicate that the Company will have continued negative cash flows for the foreseeable future as it continues to fund operating expenses. Net losses incurred for the three and nine months ended September 30, 2024 were $3.9 million and $14.7 million, respectively. Net losses incurred for the three and nine months ended September 30, 2023 were $8.1 million and $31.9 million, respectively.

As of September 30, 2024, the Company’s cash and cash equivalents amounted to $19.7 million, current assets amounted to $21.2 million and current liabilities amounted to $2.4 million. At December 31, 2023, the Company’s cash, cash equivalents and marketable securities amounted to $33.2 million, current assets amounted to $36.8 million and current liabilities amounted to $5.8 million.

In September 2023, the Company announced the Restructuring Plan (as defined below) to reduce the Company's operations to preserve financial resources, resulting in a reduction of the Company’s workforce by up to 29 people, or approximately 70% of the Company's then existing headcount. In May 2024, the Company's Board of Directors approved an additional reduction of eight employees in an effort to conserve cash resources. As of June 30, 2024, the Company incurred $4.4 million in charges relating to these reductions in workforce, consisting primarily of cash-based expenses related to employee severance and notice period payments, benefits and related costs. These activities were substantially complete as of June 30, 2024 and the Company did not incur any restructuring costs for the three months ended September 30, 2024.

Reverse Stock Split

On August 29, 2024, the Company effected a 1-for-25 reverse stock split of its issued and outstanding common stock. Accordingly, all share and per share amounts for all periods presented in the accompanying condensed consolidated financial statements and notes thereto have been adjusted retroactively, where applicable, to reflect this reverse stock split. All fractional shares resulting from the reverse stock split were rounded up to the nearest whole number.

Accrued Expenses and Other Current Liabilities

9 Months Ended

Sep. 30, 2024

Payables and Accruals [Abstract]

Accrued Expenses and Other Current Liabilities

8. ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES

Accrued expenses and other current liabilities consist of the following (in thousands):


	September 30,		December 31,
	2024		2023
Employee compensation costs	$	809	$	987
Contract research and development costs		247		685
Restructuring costs		230		1,734
Operating lease liabilities, current		32		183
Other liabilities		620		539
Total accrued expenses and other current liabilities	$	1,938	$	4,128

Summary of Significant Accounting Policies

9 Months Ended

Sep. 30, 2024

Accounting Policies [Abstract]

Summary of Significant Accounting Policies

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The accompanying interim condensed consolidated financial statements have been prepared in accordance with United States generally accepted accounting principles (“U.S. GAAP”).

The accompanying interim condensed consolidated financial statements as of September 30, 2024 and for the three and nine months ended September 30, 2024 and 2023, and related interim information contained within the notes to the interim condensed consolidated financial statements, are unaudited. In management’s opinion, the unaudited interim condensed consolidated financial statements have been prepared on the same basis as the Company’s audited consolidated financial statements and include all adjustments (including normal recurring adjustments) necessary for the fair presentation of the Company’s financial position as of September 30, 2024, results of operations, statement of stockholders’ equity for the three and nine months ended September 30, 2024 and 2023 and its cash flows for the nine months ended September 30, 2024 and 2023. All intercompany balances and transactions have been eliminated. These unaudited interim condensed consolidated financial statements should be read in conjunction with the Company’s audited consolidated financial statements and accompanying notes contained in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2023, as filed with the Securities and Exchange Commission on March 8, 2024 (the “2023 Consolidated Financial Statements”). The results for the three and nine months ended September 30, 2024 are not necessarily indicative of the results expected for the full fiscal year or any interim period.

For the nine months ended September 30, 2024, there have been no material changes to the significant accounting policies as disclosed in Note 2 to the 2023 Consolidated Financial Statements.

Recently Issued Accounting Standards

The Company periodically reviews new accounting standards that are issued and has not identified any new standards that it believes merit further discussion or would have a significant impact on its financial statements.