0000950170-23-040983 | 10-Q | XBRL Viewer

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Fair Value Measurements - Additional Information (Details) - USD ($)	Jun. 30, 2023	Dec. 31, 2022
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Money market funds	$ 17,000,000.0	$ 21,600,000
Level Two
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Fair value assets	0	0
Level Three
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Fair value assets	$ 0	$ 0

Liability Related to Sale of Royalties

6 Months Ended

Jun. 30, 2023

Sale Of Royalties Liability Disclosure [Abstract]

Liability Related to Sale of Royalties

Note 8. Liability Related to Sale of Royalties

On March 30, 2021, we entered into and closed a Royalty Purchase Agreement with HCR pursuant to which we sold to HCR the right to receive royalty payments made by Pfizer in respect of global net sales of RUXIENCE. Under the terms of the Royalty Purchase Agreement, we have received $47.5 million through June 30, 2023 ($35 million at closing and $12.5 million in milestone payments) and we are eligible to receive an additional $10 million based on the achievement of sales milestone in 2023.

Due to the nature of the transaction, which included a cap on HCR’s rate of return, we recorded a liability related to the proceeds received from HCR of $35.0 million, net of transaction costs of $1.1 million and the 2021 milestone payments in the collective amount of $10.0 million as an additional liability related to the sale of royalties on the consolidated balance sheet as of March 31, 2022 pursuant to ASC 470-10-25, Debt – Sales of Future Revenues or Various Other Measures of Income.

On June 7, 2022, we entered into and closed an amendment to our Royalty Purchase Agreement, resulting in the Company recognizing a $37.2 million gain, which was the total balance of liability related to the sale of royalties on the closing date. The Amendment to Royalty Purchase Agreement eliminated all of our continuing involvement with the cash generating activities related to the royalties and removed all restrictions related to the rate of return and was therefore accounted for under ASC 610-20, Gains and Losses from Derecognition of Nonfinancial Assets and ASC 405-20, Liabilities – Extinguishment of Liabilities.

Future milestone payments will be accounted for as variable consideration and recognized using the most likely method in accordance with ASC 610-20 Other Income — Gains and Losses from the Derecognition of Nonfinancial Assets. We received the 2022 milestone payment of $2.5 million on February 28, 2023. The proceeds from the 2022 milestone payment were recorded as other income in the consolidated statement of operations for the year ended December 31, 2022. We are eligible to receive an additional milestone payment of $10 million based on achievement of sales milestone in 2023.

Due to our Amendment to Royalty Purchase Agreement, we did not have any liability related to sale of royalties as of June 30, 2023. The following table presents the changes in the liability in the prior period related to the sale of royalties under the Royalty Purchase Agreement with HCR (in thousands):


	For the Six Months Ended June 30,
	2022
Liability related to sale of royalties, beginning balance	$	31,045
Proceeds from milestone payments, net of transaction costs		9,500
Non-cash interest expense		3,416
RUXIENCE royalties paid by Pfizer to HCR		(6,779	)
Gain from extinguishment of liability related to sale of royalties		(37,182	)
Liability related to sale of royalties, ending balance		—

We recorded non-cash interest expense through the date of the Amendment to Royalty Purchase Agreement.

Nature of Business and Significant Accounting Policies	6 Months Ended
Jun. 30, 2023
Accounting Policies [Abstract]
Nature of Business and Significant Accounting Policies	Note 1. Nature of Business and Significant Accounting Policies Organization and Liquidity Aptevo Therapeutics Inc. (Aptevo, we, us, or the Company) is a clinical-stage, research and development biotechnology company focused on developing novel immuno-oncology candidates for the treatment of different forms of cancer. We have developed two versatile and enabling platform technologies for rational design of precision immune modulatory drugs. Our clinical candidates, APVO436 and ALG.APV-527, and preclinical candidates, APVO603 and APVO711, were developed using our ADAPTIR™ modular protein technology platform. Our preclinical candidate APVO442 was developed using our ADAPTIR-FLEX™ modular protein technology platform. We are currently trading on the Nasdaq Capital Market under the symbol “APVO.” The accompanying financial statements have been prepared on a basis that assumes we will continue as a going concern and which contemplates the realization of assets and satisfaction of liabilities and commitments in the normal course of business. For the six months ended June 30, 2023, we had a net loss of $5.2 million. We had an accumulated deficit of $211.2 million as of June 30, 2023. For the six months ended June 30, 2023, net cash used in our operating activities was $0.2 million. We have suffered recurring losses from operations and negative cash flows from operating activities. We believe that our existing cash resources, milestone payments related to the Royalty Purchase Agreement with HealthCare Royalty Management, LLC ("HCR"), funds available under the Purchase Agreement with Lincoln Park Capital Fund, LLC ("Lincoln Park") and the Equity Distribution Agreement with Piper Sandler & Co ("Piper Sandler"), cash to be generated from future milestones related to IXINITY sales and regulatory approvals achieved by Medexus Pharmaceuticals, Inc. ("Medexus"), and contingent considerations to be received from Kamada Ltd. (previously Saol), will be sufficient to meet our projected operating requirements for at least twelve months from the date of issuance of these financial statements. On August 4, 2023, we completed a public offering related to the issuance and sale of our common stock (or pre-funded warrant in lieu thereof) and received $5 million in gross proceeds from issuance of these shares. Our net proceeds from the offering amounted to $4.5 million after placement agent and other fees (see Note 12). We may choose to raise additional funds to support our operating and capital needs in the future. We continue to face significant challenges and uncertainties and, as a result, our available capital resources may be consumed more rapidly than currently expected due to: (a) changes we may make to the business that affect ongoing operating expenses; (b) changes we may make in our business strategy; (c) changes we may make in our research and development spending plans; (d) whether and to what extent expected milestones are received from Medexus with respect to IXINITY; (e) whether and to what extent future milestone payments are received under our Royalty Purchase Agreement; (f) macroeconomic conditions such as rising interest rates, inflation and costs; and (g) other items affecting our forecasted level of expenditures and use of cash resources. We may obtain additional funding through our existing equity Purchase Agreement with Lincoln Park or our Equity Distribution Agreement with Piper Sandler, or attempt to obtain other public or private financing, collaborative or licensing arrangements with strategic partners, or through credit lines or other debt financing sources to increase the funds available to fund operations. However, we may not be able to secure such funding in a timely manner or on favorable terms, if at all. Furthermore, if we issue equity or debt securities to raise additional funds, our existing stockholders may experience dilution, and the new equity or debt securities may have rights, preferences, and privileges senior to those of our existing stockholders. If we raise additional funds through collaboration, licensing, or other similar arrangements, it may be necessary to relinquish valuable rights to our potential products or proprietary technologies, or grant licenses on terms that are not favorable to us. Without additional funds, we may be forced to delay, scale back, or eliminate some of our research and development activities or other operations and potentially delay product development in an effort to provide sufficient funds to continue our operations. If any of these events occurs, our ability to achieve our development and commercialization goals may be adversely affected. Given the continuing global economic and geopolitical climate, including rising interest rates and stock market volatility, we may experience delays or difficulties in the financing environment and raising capital due to economic uncertainty. Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (GAAP). These unaudited condensed consolidated financial statements include all adjustments, which include normal recurring adjustments, necessary for the fair presentation of the Company’s financial position. These unaudited interim consolidated financial statements should be read in conjunction with the audited consolidated financial statements as of and for the year ended December 31, 2022, and the notes thereto, which are included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2022. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from these estimates and changes in these estimates are recorded when known. The unaudited condensed consolidated financial statements include the accounts of the Company and our wholly owned subsidiary, Aptevo Research and Development LLC. All intercompany balances and transactions have been eliminated. Use of Estimates The preparation of financial statements in conformity with GAAP requires estimates and assumptions that affect the reported amounts of assets and liabilities, revenues and expenses, and related disclosures of contingent liabilities in the unaudited condensed financial statements and accompanying notes. Estimates are used for, but not limited to, clinical accruals, useful lives of equipment, commitments and contingencies, stock-based compensation, and incremental borrowing rate (IBR) used for our lease. Given the global economic and geopolitical climate, these estimates are becoming more challenging, and actual results could differ materially from those estimates. Significant Accounting Policies Gain Related to Sale of Nonfinancial Asset to XOMA (US) LLC On March 29, 2023, we entered into and closed a payment interest purchase agreement (the “Purchase Agreement”) with XOMA (US) LLC (“XOMA”) pursuant to which we sold to XOMA our right, title and interest in all of the deferred payments and a portion of the milestone payments from Medexus pursuant to our LLC Purchase Agreement. Under the terms of the Purchase Agreement, we received $9.6 million at closing (the “Closing Payment”) and an additional post-closing payment of $0.05 million post-closing payment. In exchange for the Closing Payment, the Company sold to XOMA its right, title and interest to the following payments under the LLC Purchase Agreement: (i) 100% of the Company’s entitlement to receive the deferred payments that may become due and payable following March 29, 2023 (including, for avoidance of doubt, any and all payments earned during Q1 2023), (ii) 25% of the milestone payment upon receipt of a Notice of Compliance for IXINITY from Health Canada (the "Canadian Approval Milestone Payment"); and (iii) 50% of the milestone payments upon receipt of regulatory approval in each of Germany, France, the United Kingdom, Spain and Italy (the "European Approval Milestone Payments") and when the worldwide net sales of IXINITY for a fiscal year meet or exceed $120 million (the "Net Sales Milestone Payment"). We accounted for the $9.6 million Closing Payment and the $0.05 million post-closing payment from XOMA as other income in accordance with Accounting Standards Codification (ASC) 610-20 Other Income - Gains and Losses from the Derecognition of Nonfinancial Assets in the first quarter of 2023. Contractual rights sold to XOMA represent an intangible asset under ASC 610-20 Other Income - Gains and Losses from the Derecognition of Nonfinancial Assets for which XOMA bears all benefit and Aptevo has no obligations going forward. The Company will continue to account for its portion of future milestones under our LLC Purchase Agreement with Medexus as contingent consideration under ASC 450-30 Gain Contingencies and will record income when proceeds are received. Liability Related to Sale of Royalties and Non-Cash Interest Expense On March 30, 2021, we entered into and closed a Royalty Purchase Agreement with HCR pursuant to which we sold to HCR the right to receive royalty payments made by Pfizer in respect of global net sales of RUXIENCE. Under the terms of the Royalty Purchase Agreement, we have received $47.5 million through June 30, 2023 ($35 million at closing and $12.5 million in milestone payments) and we are eligible to receive an additional $10 million based on the achievement of sales milestone 2023. Through March 31, 2022, we accounted for the Royalty Purchase Agreement with HCR as a debt-like instrument, amortized under the effective interest rate method over the life of the related expected royalty stream. The liabilities related to the sale of royalties and the debt amortization were based on our estimates of royalties expected to be paid over the life of the arrangement. We received the 2021 milestone payments in the collective amount of $10 million on March 8, 2022. The proceeds from these milestone payments, net of transaction costs, were recorded as an additional liability related to the sale of royalties on the consolidated balance sheet as of March 31, 2022 pursuant to ASC 470-10-25, Debt – Sales of Future Revenues or Various Other Measures of Income. On June 7, 2022, we entered into and closed an amendment to the Royalty Purchase Agreement (the "Amendment to Royalty Purchase Agreement") (see Note 8) which removed all restrictions related to HCR’s rate of return, and it is no longer a sale of a specified percentage of royalty revenue. The Amendment to Royalty Purchase Agreement was accounted for under ASC 610-20, Gains and Losses from Derecognition of Nonfinancial Assets and ASC 405-20, Liabilities – Extinguishment of Liabilities and the transaction was no longer considered a debt-like financing. As a result of the Amendment to Royalty Purchase Agreement, the Company recognized a gain of $37.2 million in the second quarter of 2022, which was the total balance of liability related to the sale of royalties on the closing date. Future milestone payments will be accounted for as variable consideration and recognized as other income when such milestones are earned using the most likely method in accordance with ASC 610-20 Other Income — Gains and Losses from the Derecognition of Nonfinancial Assets. We received the 2022 milestone payment of $2.5 million on February 28, 2023. The proceeds from the 2022 milestone payment were recorded as other income in the consolidated statement of operations for the year ended December 31, 2022. The Company is eligible to receive an additional milestone payment of $10 million based on achievement of sales milestone in 2023. Royalty Revenue We recognized revenue in accordance with ASC 606, Revenue from Contracts with Customers. Under ASC 606, an entity recognizes revenue when its customer obtains control of promised goods or services, in an amount that reflects the consideration that the entity expects to receive in exchange for those goods or services. To determine revenue recognition for arrangements that an entity determines are within the scope of ASC 606, the entity performs the following five steps: (i) identify the contract(s) with a customer; (ii) identify the performance obligations in the contract; (iii) determine the transaction price; (iv) allocate the transaction price to the performance obligations in the contract; and (v) recognize revenue when (or as) the entity satisfies a performance obligation. RUXIENCE Royalty Revenue Aptevo’s royalty revenue was exclusively related to royalties on Pfizer’s net sales of RUXIENCE. We did not recognize royalty revenue for the six months ended June 30, 2023. Royalty revenue for the period covered by this report reflects revenue recorded only in the first quarter of 2022 due to our Amendment to Royalty Purchase Agreement with HCR (see Note 8). As a result of the Amendment to Royalty Purchase Agreement, we ceased reporting as royalty revenue, royalties paid by Pfizer to HCR related to Pfizer’s sales of RUXIENCE. We recognized royalty revenue under ASC 606, which provides revenue recognition constraints by requiring the recognition of revenue at the later of the following: (1) when the subsequent sale or usage occurs or (2) when the performance obligation to which some or all of the sales-based or usage-based royalty has been allocated has been satisfied (or partially satisfied). We satisfied our performance obligation prior to the period covered by this report, specifically in May 2011 when the original Collaboration and License Agreement between Trubion Pharmaceuticals and Wyeth was amended to remove the exclusivity/non-compete restrictions so that Pfizer could develop a CD20 biosimilar product in exchange for a one-time payment of $2.5 million and future royalties of 2.5% on any CD20 biosimilar product commercialized by Pfizer in the future. We do not have future performance obligations under this agreement. We applied the royalty recognition constraint required under the guidance for sales-based royalties, which requires a sales-based royalty to be recorded no sooner than the underlying sale. Therefore, royalties on sales of products commercialized by Pfizer were recognized in the quarter the product is sold. Given the royalty revenues were based on 2.5% of global net sales of RUXIENCE, the considerations were considered variable. Pfizer generally reported sales information to us within 60 days of quarter end. Unless we received finalized sales information for the respective quarter, we estimated the expected royalty proceeds based on an analysis of historical experience, analyst expectations, interim data provided by Pfizer, including their publicly announced sales, and other publicly available information. Differences between actual and estimated royalty revenues were adjusted for in the period in which they became known, typically the following quarter. Aptevo did not record revenue for the six months ended June 30, 2023 due to our Amendment to Royalty Purchase Agreement. Revenue recorded for the six months ended June 30, 2022 represents actual royalty revenue given the timing of RUXIENCE sales reports received from Pfizer. There was no significant financing component to the contract. Debt Modification On March 29, 2023, we used a portion of the proceeds from our Purchase Agreement with XOMA to fully repay the $2.8 million outstanding principal balance of our MidCap debt, and $0.3 million in exit fees. The pre-payment was not considered an amendment to our Credit Agreement (as defined below) since we were required to fully repay the remaining principal balance if we sold our IXINITY deferred payment stream and milestones. Other Significant Accounting Policies Our other significant accounting policies were reported in our Annual Report on Form 10-K for the year ended December 31, 2022 that was filed with the SEC on March 30, 2023. Our other significant accounting policies have not changed materially from the policies previously reported.

Nature of Business and Significant Accounting Policies

6 Months Ended

Jun. 30, 2023

Accounting Policies [Abstract]

Nature of Business and Significant Accounting Policies

Note 1. Nature of Business and Significant Accounting Policies

Organization and Liquidity

Aptevo Therapeutics Inc. (Aptevo, we, us, or the Company) is a clinical-stage, research and development biotechnology company focused on developing novel immuno-oncology candidates for the treatment of different forms of cancer. We have developed two versatile and enabling platform technologies for rational design of precision immune modulatory drugs. Our clinical candidates, APVO436 and ALG.APV-527, and preclinical candidates, APVO603 and APVO711, were developed using our ADAPTIR™ modular protein technology platform. Our preclinical candidate APVO442 was developed using our ADAPTIR-FLEX™ modular protein technology platform.

We are currently trading on the Nasdaq Capital Market under the symbol “APVO.”

The accompanying financial statements have been prepared on a basis that assumes we will continue as a going concern and which contemplates the realization of assets and satisfaction of liabilities and commitments in the normal course of business. For the six months ended June 30, 2023, we had a net loss of $5.2 million. We had an accumulated deficit of $211.2 million as of June 30, 2023. For the six months ended June 30, 2023, net cash used in our operating activities was $0.2 million. We have suffered recurring losses from operations and negative cash flows from operating activities. We believe that our existing cash resources, milestone payments related to the Royalty Purchase Agreement with HealthCare Royalty Management, LLC ("HCR"), funds available under the Purchase Agreement with Lincoln Park Capital Fund, LLC ("Lincoln Park") and the Equity Distribution Agreement with Piper Sandler & Co ("Piper Sandler"), cash to be generated from future milestones related to IXINITY sales and regulatory approvals achieved by Medexus Pharmaceuticals, Inc. ("Medexus"), and contingent considerations to be received from Kamada Ltd. (previously Saol), will be sufficient to meet our projected operating requirements for at least twelve months from the date of issuance of these financial statements. On August 4, 2023, we completed a public offering related to the issuance and sale of our common stock (or pre-funded warrant in lieu thereof) and received $5 million in gross proceeds from issuance of these shares. Our net proceeds from the offering amounted to $4.5 million after placement agent and other fees (see Note 12). We may choose to raise additional funds to support our operating and capital needs in the future.

We continue to face significant challenges and uncertainties and, as a result, our available capital resources may be consumed more rapidly than currently expected due to: (a) changes we may make to the business that affect ongoing operating expenses; (b) changes we may make in our business strategy; (c) changes we may make in our research and development spending plans; (d) whether and to what extent expected milestones are received from Medexus with respect to IXINITY; (e) whether and to what extent future milestone payments are received under our Royalty Purchase Agreement; (f) macroeconomic conditions such as rising interest rates, inflation and costs; and (g) other items affecting our forecasted level of expenditures and use of cash resources. We may obtain additional funding through our existing equity Purchase Agreement with Lincoln Park or our Equity Distribution Agreement with Piper Sandler, or attempt to obtain other public or private financing, collaborative or licensing arrangements with strategic partners, or through credit lines or other debt financing sources to increase the funds available to fund operations. However, we may not be able to secure such funding in a timely manner or on favorable terms, if at all. Furthermore, if we issue equity or debt securities to raise additional funds, our existing stockholders may experience dilution, and the new equity or debt securities may have rights, preferences, and privileges senior to those of our existing stockholders. If we raise additional funds through collaboration, licensing, or other similar arrangements, it may be necessary to relinquish valuable rights to our potential products or proprietary technologies, or grant licenses on terms that are not favorable to us. Without additional funds, we may be forced to delay, scale back, or eliminate some of our research and development activities or other operations and potentially delay product development in an effort to provide sufficient funds to continue our operations. If any of these events occurs, our ability to achieve our development and commercialization goals may be adversely affected. Given the continuing global economic and geopolitical climate, including rising interest rates and stock market volatility, we may experience delays or difficulties in the financing environment and raising capital due to economic uncertainty.

Basis of Presentation

The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (GAAP). These unaudited condensed consolidated financial statements include all adjustments, which include normal recurring adjustments, necessary for the fair presentation of the Company’s financial position. These unaudited interim consolidated financial statements should be read in conjunction with the audited consolidated financial statements as of and for the year ended December 31, 2022, and the notes thereto, which are included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2022.

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from these estimates and changes in these estimates are recorded when known.

The unaudited condensed consolidated financial statements include the accounts of the Company and our wholly owned subsidiary, Aptevo Research and Development LLC. All intercompany balances and transactions have been eliminated.

Use of Estimates

The preparation of financial statements in conformity with GAAP requires estimates and assumptions that affect the reported amounts of assets and liabilities, revenues and expenses, and related disclosures of contingent liabilities in the unaudited condensed financial statements and accompanying notes. Estimates are used for, but not limited to, clinical accruals, useful lives of equipment, commitments and contingencies, stock-based compensation, and incremental borrowing rate (IBR) used for our lease. Given the global economic and geopolitical climate, these estimates are becoming more challenging, and actual results could differ materially from those estimates.

Significant Accounting Policies

Gain Related to Sale of Nonfinancial Asset to XOMA (US) LLC

On March 29, 2023, we entered into and closed a payment interest purchase agreement (the “Purchase Agreement”) with XOMA (US) LLC (“XOMA”) pursuant to which we sold to XOMA our right, title and interest in all of the deferred payments and a portion of the milestone payments from Medexus pursuant to our LLC Purchase Agreement. Under the terms of the Purchase Agreement, we received $9.6 million at closing (the “Closing Payment”) and an additional post-closing payment of $0.05 million post-closing payment. In exchange for the Closing Payment, the Company sold to XOMA its right, title and interest to the following payments under the LLC Purchase Agreement: (i) 100% of the Company’s entitlement to receive the deferred payments that may become due and payable following March 29, 2023 (including, for avoidance of doubt, any and all payments earned during Q1 2023), (ii) 25% of the milestone payment upon receipt of a Notice of Compliance for IXINITY from Health Canada (the "Canadian Approval Milestone Payment"); and (iii) 50% of the milestone payments upon receipt of regulatory approval in each of Germany, France, the United Kingdom, Spain and Italy (the "European Approval Milestone Payments") and when the worldwide net sales of IXINITY for a fiscal year meet or exceed $120 million (the "Net Sales Milestone Payment").

We accounted for the $9.6 million Closing Payment and the $0.05 million post-closing payment from XOMA as other income in accordance with Accounting Standards Codification (ASC) 610-20 Other Income - Gains and Losses from the Derecognition of Nonfinancial Assets in the first quarter of 2023. Contractual rights sold to XOMA represent an intangible asset under ASC 610-20 Other Income - Gains and Losses from the Derecognition of Nonfinancial Assets for which XOMA bears all benefit and Aptevo has no obligations going forward. The Company will continue to account for its portion of future milestones under our LLC Purchase Agreement with Medexus as contingent consideration under ASC 450-30 Gain Contingencies and will record income when proceeds are received.

Liability Related to Sale of Royalties and Non-Cash Interest Expense

Through March 31, 2022, we accounted for the Royalty Purchase Agreement with HCR as a debt-like instrument, amortized under the effective interest rate method over the life of the related expected royalty stream. The liabilities related to the sale of royalties and the debt amortization were based on our estimates of royalties expected to be paid over the life of the arrangement. We received the 2021 milestone payments in the collective amount of $10 million on March 8, 2022. The proceeds from these milestone payments, net of transaction costs, were recorded as an additional liability related to the sale of royalties on the consolidated balance sheet as of March 31, 2022 pursuant to ASC 470-10-25, Debt – Sales of Future Revenues or Various Other Measures of Income.

On June 7, 2022, we entered into and closed an amendment to the Royalty Purchase Agreement (the "Amendment to Royalty Purchase Agreement") (see Note 8) which removed all restrictions related to HCR’s rate of return, and it is no longer a sale of a specified percentage of royalty revenue. The Amendment to Royalty Purchase Agreement was accounted for under ASC 610-20, Gains and Losses from Derecognition of Nonfinancial Assets and ASC 405-20, Liabilities – Extinguishment of Liabilities and the transaction was no longer considered a debt-like financing.

As a result of the Amendment to Royalty Purchase Agreement, the Company recognized a gain of $37.2 million in the second quarter of 2022, which was the total balance of liability related to the sale of royalties on the closing date. Future milestone payments will be accounted for as variable consideration and recognized as other income when such milestones are earned using the most likely method in accordance with ASC 610-20 Other Income — Gains and Losses from the Derecognition of Nonfinancial Assets. We received the 2022 milestone payment of $2.5 million on February 28, 2023. The proceeds from the 2022 milestone payment were recorded as other income in the consolidated statement of operations for the year ended December 31, 2022. The Company is eligible to receive an additional milestone payment of $10 million based on achievement of sales milestone in 2023.

Royalty Revenue

We recognized revenue in accordance with ASC 606, Revenue from Contracts with Customers. Under ASC 606, an entity recognizes revenue when its customer obtains control of promised goods or services, in an amount that reflects the consideration that the entity expects to receive in exchange for those goods or services. To determine revenue recognition for arrangements that an entity determines are within the scope of ASC 606, the entity performs the following five steps: (i) identify the contract(s) with a customer; (ii) identify the performance obligations in the contract; (iii) determine the transaction price; (iv) allocate the transaction price to the performance obligations in the contract; and (v) recognize revenue when (or as) the entity satisfies a performance obligation.

RUXIENCE Royalty Revenue

Aptevo’s royalty revenue was exclusively related to royalties on Pfizer’s net sales of RUXIENCE. We did not recognize royalty revenue for the six months ended June 30, 2023. Royalty revenue for the period covered by this report reflects revenue recorded only in the first quarter of 2022 due to our Amendment to Royalty Purchase Agreement with HCR (see Note 8). As a result of the Amendment to Royalty Purchase Agreement, we ceased reporting as royalty revenue, royalties paid by Pfizer to HCR related to Pfizer’s sales of RUXIENCE.

We recognized royalty revenue under ASC 606, which provides revenue recognition constraints by requiring the recognition of revenue at the later of the following: (1) when the subsequent sale or usage occurs or (2) when the performance obligation to which some or all of the sales-based or usage-based royalty has been allocated has been satisfied (or partially satisfied). We satisfied our performance obligation prior to the period covered by this report, specifically in May 2011 when the original Collaboration and License Agreement between Trubion Pharmaceuticals and Wyeth was amended to remove the exclusivity/non-compete restrictions so that Pfizer could develop a CD20 biosimilar product in exchange for a one-time payment of $2.5 million and future royalties of 2.5% on any CD20 biosimilar product commercialized by Pfizer in the future. We do not have future performance obligations under this agreement. We applied the royalty recognition constraint required under the guidance for sales-based royalties, which requires a sales-based royalty to be recorded no sooner than the underlying sale. Therefore, royalties on sales of products commercialized by Pfizer were recognized in the quarter the product is sold.

Given the royalty revenues were based on 2.5% of global net sales of RUXIENCE, the considerations were considered variable. Pfizer generally reported sales information to us within 60 days of quarter end. Unless we received finalized sales information for the respective quarter, we estimated the expected royalty proceeds based on an analysis of historical experience, analyst expectations, interim data provided by Pfizer, including their publicly announced sales, and other publicly available information. Differences between actual and estimated royalty revenues were adjusted for in the period in which they became known, typically the following quarter. Aptevo did not record revenue for the six months ended June 30, 2023 due to our Amendment to Royalty Purchase Agreement. Revenue recorded for the six months ended June 30, 2022 represents actual royalty revenue given the timing of RUXIENCE sales reports received from Pfizer. There was no significant financing component to the contract.

Debt Modification

On March 29, 2023, we used a portion of the proceeds from our Purchase Agreement with XOMA to fully repay the $2.8 million outstanding principal balance of our MidCap debt, and $0.3 million in exit fees. The pre-payment was not considered an amendment to our Credit Agreement (as defined below) since we were required to fully repay the remaining principal balance if we sold our IXINITY deferred payment stream and milestones.

Other Significant Accounting Policies

Our other significant accounting policies were reported in our Annual Report on Form 10-K for the year ended December 31, 2022 that was filed with the SEC on March 30, 2023. Our other significant accounting policies have not changed materially from the policies previously reported.

Equity - Additional Information (Details) - USD ($)					1 Months Ended	3 Months Ended				6 Months Ended
Equity - Additional Information (Details) - USD ($)	Feb. 16, 2022	Dec. 14, 2020	Nov. 08, 2020	Jun. 01, 2018	Mar. 31, 2019	Jun. 30, 2023	Mar. 31, 2023	Jun. 30, 2022	Mar. 31, 2022	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022	Jun. 07, 2022	Aug. 01, 2016
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Common stock, par value						$ 0.001				$ 0.001		$ 0.001
Proceeds from issuance of common stock										$ 2,083,000	$ 436,000
Issuance of common stock, net						$ 482,000	$ 1,602,000	$ 436,000
Preferred stock, par value						$ 0.001				$ 0.001		$ 0.001
Estimated forfeiture rate								31.00%		30.00%	30.00%
Weighted-average grant date fair value per share of options granted										$ 1.68	$ 4.43
Aggregate intrinsic value of options exercised						$ 0		$ 0		$ 0	$ 0
Total fair value of stock option vested										1,100,000	$ 1,200,000
Pre funded warrants outstanding, term					10 years
Pre funded warrants expire date					Mar. 11, 2029
Tranche Two
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Number of common stock to be issued exercise of prefunded warrants					153,571
Pre funded warrants exercise price, per share					$ 0.14
Unvested RSUs
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Unrecognized compensation expense						1,300,000				$ 1,300,000
Options expected to vest, weighted average period										1 year 6 months
Stock Option
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Unrecognized compensation expense						$ 1,200,000				$ 1,200,000
Options expected to vest, weighted average remaining vesting term										1 year 1 month 6 days
2016 Stock Incentive Plan
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Stock authorized for issuance under Stock Plan														200,000
2018 Stock Incentive Plan \| Unvested RSUs
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Stock authorized for issuance under Stock Plan				300,000									500,000
Maximum number of returning shares from old plan to be add to shares reserve				300,000
Number of shares available for grant						100,000				100,000
Stock plan termination period				10 years
2018 Stock Incentive Plan \| Unvested RSUs \| Non-employee Directors
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Stock plan vesting period				1 year
Broadridge Corporate Issuer Solutions
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Preferred share purchase right			1
Broadridge Corporate Issuer Solutions \| Series A Junior Participating Preferred Stock [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Preferred stock, par value			$ 0.001
Share portion entitled to purchase by rights			When exercisable, each Right initially would represent the right to purchase from the Company one one-thousandth of a share of a newly-designated series of preferred stock
Warrants exercise price, per share			$ 400.00
Percentage of beneficial ownership			10.00%
Minimum \| Stock Option
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Expected volatility										$ 1.34	$ 3.26
Minimum \| 2018 Stock Incentive Plan \| Unvested RSUs
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Stock plan vesting period				1 year
Maximum \| Stock Option
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Expected volatility										$ 2.08	$ 6.30
Maximum \| 2018 Stock Incentive Plan \| Unvested RSUs
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Stock plan vesting period				3 years
Common Stock
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Issuance of common stock shares						300,000	730,913	78,285
Issuance of common stock, net							$ 1,000
Warrants
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Warrants outstanding, term					5 years
Warrants outstanding						350,589		350,589		350,589	350,589
Warrants \| Tranche One
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Warrants exercise price, per share					$ 18.20
Number of warrants issued					1,571,429
Warrants \| Maximum
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Number of common stock to be issued up conversion of warrants					1,725,000
Equity Distribution Agreement
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Common stock, par value		$ 0.001				$ 2.26				$ 2.26
Issuance of common stock shares										730,913
Proceeds from issuance of common stock										$ 1,600,000	$ 400,000
Equity Distribution Agreement \| Common Stock
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Common stock, par value								$ 5.75			$ 5.75
Issuance of common stock shares											78,285
Equity Distribution Agreement \| Common Stock \| Maximum
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Aggregate offering price		$ 50,000,000.0
Purchase Agreement \| Common Stock \| Lincoln Park
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Issuance of common stock shares	99,276								99,276	300,000
Proceeds from issuance of common stock										$ 500,000
Cash consideration as an initial fee for commitment to purchase shares of common stock	$ 0
Shares of common stock issued for cash consideration											0
Purchase Agreement \| Common Stock \| Minimum \| Lincoln Park
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Minimum prevailing market price to direct purchase	$ 1.00
Purchase Agreement \| Common Stock \| Maximum \| Lincoln Park
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Issuance of common stock, net	$ 35,000,000.0

Cash and Cash Equivalents - Additional Information (Details)	6 Months Ended
	Jun. 30, 2023
Restricted Cash And Cash Equivalents Items [Line Items]
Cash equivalents, maturity period	90 days

Leases - Additional Information (Details) $ in Thousands	1 Months Ended	6 Months Ended
Leases - Additional Information (Details) $ in Thousands	Mar. 31, 2019 RenewalOption	Jun. 30, 2023 USD ($)	Jun. 30, 2022 USD ($)	Dec. 31, 2022 USD ($)	May 26, 2022 USD ($)
Lessee Lease Description [Line Items]
Operating lease liability					$ 4,400
Operating lease right-of-use asset		$ 5,098		$ 5,303	$ 4,400
Variable expense		200	$ 400
Long term portion of operating lease liabilities		5,748	6,400	$ 6,079
Current portion of operating lease liabilities		$ 600	$ 30
Operating Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration]		Other Liabilities Current	Other Liabilities Current
Weighted average remaining lease term for operating leases		6 years 10 months 2 days	7 years 9 months 29 days
Weighted discount rate for operating leases		12.03%	12.03%
Office Space Lease
Lessee Lease Description [Line Items]
Initial operating lease term date	2030-04
Operating lease renewal option description	the term through April 2030 and provide two options to extend the lease term, each by five years, as well as a one-time option to terminate the lease in April 2023
Operating lease renewal option term	5 years
Number of operating lease renewal option \| RenewalOption	2
Operating lease option to extend	true

Net Income (Loss) per Share

6 Months Ended

Jun. 30, 2023

Earnings Per Share [Abstract]

Net Income (Loss) per Share

Note 10. Net Income (Loss) per Share

Basic net income (loss) per share is calculated by dividing the net income (loss) by the weighted-average number of common shares outstanding for the period. Diluted net income (loss) per share is computed by dividing the net income (loss) by the weighted-average number of common share equivalents outstanding for the period using the as-if converted method. For the purpose of this calculation, warrants, stock options and restricted stock units ("RSUs") are only included in the calculation of diluted net income (loss) per share when their effect is dilutive.

We utilize the control number concept in the computation of diluted earnings per share to determine whether potential common stock instruments are dilutive. The control number used is income (loss) from continuing operations or income from discontinued operations. The control number concept requires that the same number of potentially dilutive securities applied in computing diluted earnings per share from continuing operations be applied to all other categories of income or loss, regardless of their anti-dilutive effect on such categories.

Common stock equivalents include warrants, stock options and unvested RSUs.

The following table presents the computation of basic and diluted net (loss) income per share (in thousands, except share and per share amounts):


	For the Three Months Ended June 30,					For the Six Months Ended June 30,
	2023			2022		2023			2022
Net (loss) income from continuing operations	$	(7,948	)	$	27,861	$	(6,121	)	$	19,986
Income from discontinued operations		—			149		946			327
Net (loss) income	$	(7,948	)	$	28,010	$	(5,175	)	$	20,313

Basic and diluted net (loss) income per share from continuing operations:
Basic	$	(1.23	)	$	5.55	$	(0.85	)	$	4.01
Diluted	$	(1.23	)	$	5.55	$	(0.85	)	$	4.01
Basic and diluted net income per share from discontinued operations:
Basic	$	—		$	0.03	$	0.13		$	0.07
Diluted	$	—		$	0.03	$	0.13		$	0.07
Basic and diluted net (loss) income per share:
Basic	$	(1.23	)	$	5.58	$	(0.72	)	$	4.08
Diluted	$	(1.23	)	$	5.58	$	(0.72	)	$	4.08
Shares used in calculation:
Basic		6,482,158			5,023,321		7,190,701			4,980,625
Diluted		6,482,158			5,023,321		7,190,701			4,980,970

The following table represents all potentially dilutive shares:


	As of June 30,
(in thousands)	2023		2022
Warrants		351		351
Outstanding options to purchase common stock		467		362
Unvested RSUs		340		151

We use the treasury stock method when determining dilutive shares. For the three months ended June 30, 2023, the Company was in a net loss position, therefore the share number used to calculate diluted earnings per share is the same as the basic earnings per share. As of June 30, 2022, we determined RSUs were the only dilutive shares, therefore included in the diluted earnings per share calculation.

Liability Related to Sale of Royalties (Tables)

6 Months Ended

Jun. 30, 2023

Sale Of Royalties Liability Disclosure [Abstract]

Schedule of Changes in the Liability Related to the Sale of Royalties

The following table presents the changes in the liability in the prior period related to the sale of royalties under the Royalty Purchase Agreement with HCR (in thousands):


	For the Six Months Ended June 30,
	2022
Liability related to sale of royalties, beginning balance	$	31,045
Proceeds from milestone payments, net of transaction costs		9,500
Non-cash interest expense		3,416
RUXIENCE royalties paid by Pfizer to HCR		(6,779	)
Gain from extinguishment of liability related to sale of royalties		(37,182	)
Liability related to sale of royalties, ending balance		—

Fair Value Measurements

6 Months Ended

Jun. 30, 2023

Fair Value Disclosures [Abstract]

Fair Value Measurements

Note 5. Fair Value Measurements

The Company’s estimates of fair value for financial assets and financial liabilities are based on the framework established in the fair value accounting guidance. The framework is based on the inputs used in valuation, it gives the highest priority to quoted prices in active markets and requires that observable inputs be used in the valuations when available. The disclosure of fair value estimates in the fair value accounting guidance hierarchy is based on whether the significant inputs into the valuation are observable. In determining the level of the hierarchy in which the estimate is disclosed, the highest priority is given to unadjusted quoted prices in active markets and the lowest priority to unobservable inputs that reflect the Company’s significant market assumptions. The level in the fair value hierarchy within which the fair value measurement is reported is based on the lowest level input that is significant to the measurement in its entirety. The three levels of the hierarchy are as follows:

Level 1— Quoted prices in active markets for identical assets and liabilities;

Level 2— Inputs other than quoted prices in active markets that are either directly or indirectly observable; and

Level 3— Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities.

At June 30, 2023 and December 31, 2022, we had $17.0 million and $21.6 million in Level 1 money market funds, respectively. The carrying amounts of our money market funds approximate their fair value. At June 30, 2023 and December 31, 2022, we did not have any Level 2 or Level 3 assets.

- 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.

+ References + Details

Equity - Summary of RSU Activity (Details) - Unvested RSUs - $ / shares	6 Months Ended
	Jun. 30, 2023	Dec. 31, 2022
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Number of Units, Outstanding		223,775
Number of Units, Granted	168,168
Number of Units, Vested	(50,525)
Number of Units, Forfeited	(1,414)
Number of Units, Outstanding and expected to vest	340,004
Weighted Average Fair Value per Unit, Outstanding		$ 8.47
Weighted Average Fair Value per Unit, Granted	$ 2.09
Weighted Average Fair Value per Unit, Vested	12.13
Weighted Average Fair Value per Unit, Forfeited	3.43
Weighted Average Fair Value per Unit, Outstanding and expected to vest	$ 4.79

Collaboration Agreements

6 Months Ended

Jun. 30, 2023

Organization Consolidation And Presentation Of Financial Statements [Abstract]

Collaboration Agreements

Note 4. Collaboration Agreements

Alligator Bioscience AB

On July 20, 2017, our wholly owned subsidiary Aptevo Research and Development LLC ("Aptevo R&D"), entered into a collaboration and option agreement (the "Collaboration Agreement") with Alligator Bioscience AB ("Alligator"), pursuant to which Aptevo and Alligator have been collaboratively developing ALG.APV-527, a bispecific antibody candidate simultaneously targeting 4-1BB (CD137), a member of the TNFR superfamily of a costimulatory receptor found on activated T cells, and 5T4, a tumor antigen widely overexpressed in a number of different types of cancer.

We assessed the arrangement in accordance with ASC 606 and concluded that the contract counterparty, Alligator, is not a customer. As such the arrangement is not in the scope of ASC 606 and is instead treated as a collaborative agreement under ASC 808 – Collaborative Arrangements (ASC 808). In accordance with ASC 808, we concluded that because the Collaboration Agreement is a cost sharing agreement, there is no revenue.

For the six months ended June 30, 2023 and 2022, we recorded approximately $1.5 million and $0.3 million, which represent 50% of our cost share, in our research and development expense related to the Collaboration Agreement, respectively.

XOMA Transaction - Additional Information (Details) - USD ($) $ in Thousands		3 Months Ended	6 Months Ended
	Mar. 29, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Related Party Transaction [Line Items]
Income from discontinued operations		$ 149	$ 946	$ 327
Payment Interest Purchase Agreement
Related Party Transaction [Line Items]
Income from discontinued operations	$ 9,600
Additional post-closing payment	$ 50
Percentage of entitlement to receive deferred payments	100.00%
Percentage of entitlement to receive Canadian approval milestone payment	25.00%
Percentage of entitlement to receive European approval milestone payment	50.00%
Payment Interest Purchase Agreement \| ASC 610-20
Related Party Transaction [Line Items]
Income from discontinued operations			9,600
Additional post-closing payment			$ 50

- Definition

Amount after tax of income (loss) from a discontinued operation including the portion attributable to the noncontrolling interest. Includes, but is not limited to, the income (loss) from operations during the phase-out period, gain (loss) on disposal, gain (loss) for reversal of write-down (write-down) to fair value, less cost to sell, and adjustments to a prior period gain (loss) on disposal.

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+ Details

Discontinued Operations

6 Months Ended

Jun. 30, 2023

Discontinued Operations And Disposal Groups [Abstract]

Discontinued Operations

Note 2. Discontinued Operations

The accompanying unaudited condensed consolidated financial statements include discontinued operations from two separate transactions: the sale of our hyperimmune business to Saol International Limited (subsequently acquired by Kamada Ltd.) in September 2017, from which we received a payment in March 2023 related to the collection of certain accounts receivable, and the sale of our Aptevo BioTherapeutics LLC business to Medexus in February 2020. In March 2023, we sold our rights to deferred payments and a percentage of potential future milestones from Medexus to XOMA.

The following table represents the components attributable to income from discontinued operations in the unaudited condensed consolidated statements of operations (in thousands):


	For the Three Months Ended June 30,				For the Six Months Ended June 30,
	2023		2022		2023		2022
Deferred payment from Medexus		—		149		523		327
Gain on contingent consideration from release of escrow related to sale of Aptevo BioTherapeutics		—		—		163		—
Gain on contingent consideration from Kamada		—		—		260		—
Income from discontinued operations	$	—	$	149	$	946	$	327

The LLC Purchase Agreement with Medexus entitled us to future deferred payments and milestones. For the six months ended June 30, 2023, we collected $0.5 million in deferred payments from Medexus related to IXINITY sales and $0.2 million related to funds released from escrow from the sale of Aptevo BioTherapeutics in 2020. Additionally, we received $0.3 million related to the sale of hyperimmune business to Saol as a result of the collection of certain accounts receivable. For the six months ended June 30, 2022, we collected $0.3 million in deferred payment from Medexus related to IXINITY sales. As a result of our Purchase Agreement with XOMA, we no longer receive deferred payments from Medexus. We are still entitled to receive a percentage of future milestones based on Medexus' achievement of certain IXINITY net sales and regulatory approvals. The proceeds from the income from discontinued operations is included within net income in the operating section of the unaudited condensed consolidated statements of cash flows.

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (Unaudited) - USD ($) $ in Thousands	Total	Common Stock	Common Stock Purchase Agreement Lincoln Park	Additional Paid-In Capital	Accumulated Deficit
Balance at Dec. 31, 2021	$ 1,216	$ 47		$ 215,232	$ (214,063)
Balance (in shares) at Dec. 31, 2021		4,898,143
Common stock issued upon vesting of restricted stock units	(4)			(4)
Common stock issued upon vesting of restricted stock units (in shares)		9,822
Commitment shares issued/ proceeds from issuance of common stock (in shares)			99,276
Stock-based compensation	601			601
Net income (loss) for the period	(7,697)				(7,697)
Balance at Mar. 31, 2022	(5,884)	$ 47		215,829	(221,760)
Balance (in shares) at Mar. 31, 2022		5,007,241
Balance at Dec. 31, 2021	1,216	$ 47		215,232	(214,063)
Balance (in shares) at Dec. 31, 2021		4,898,143
Net income (loss) for the period	20,313
Balance at Jun. 30, 2022	23,047	$ 47		216,750	(193,750)
Balance (in shares) at Jun. 30, 2022		5,089,852
Balance at Mar. 31, 2022	(5,884)	$ 47		215,829	(221,760)
Balance (in shares) at Mar. 31, 2022		5,007,241
Common stock issued upon vesting of restricted stock units (in shares)		4,326
Commitment shares issued/ proceeds from issuance of common stock	436			436
Commitment shares issued/ proceeds from issuance of common stock (in shares)		78,285
Stock-based compensation	485			485
Net income (loss) for the period	28,010				28,010
Balance at Jun. 30, 2022	23,047	$ 47		216,750	(193,750)
Balance (in shares) at Jun. 30, 2022		5,089,852
Balance at Dec. 31, 2022	17,974	$ 48		223,962	(206,036)
Balance (in shares) at Dec. 31, 2022		6,466,294
Common stock issued upon vesting of restricted stock units	(8)			(8)
Common stock issued upon vesting of restricted stock units (in shares)		42,264
Commitment shares issued/ proceeds from issuance of common stock	1,602	$ 1		1,601
Commitment shares issued/ proceeds from issuance of common stock (in shares)		730,913
Stock-based compensation	915			915
Net income (loss) for the period	2,773				2,773
Balance at Mar. 31, 2023	23,256	$ 49		226,470	(203,263)
Balance (in shares) at Mar. 31, 2023		7,239,471
Balance at Dec. 31, 2022	17,974	$ 48		223,962	(206,036)
Balance (in shares) at Dec. 31, 2022		6,466,294
Commitment shares issued/ proceeds from issuance of common stock (in shares)			300,000
Net income (loss) for the period	(5,175)
Balance at Jun. 30, 2023	16,253	$ 49		227,415	(211,211)
Balance (in shares) at Jun. 30, 2023		7,543,440
Balance at Mar. 31, 2023	23,256	$ 49		226,470	(203,263)
Balance (in shares) at Mar. 31, 2023		7,239,471
Common stock issued upon vesting of restricted stock units	(2)			(2)
Common stock issued upon vesting of restricted stock units (in shares)		3,969
Commitment shares issued/ proceeds from issuance of common stock	482			482
Commitment shares issued/ proceeds from issuance of common stock (in shares)		300,000
Stock-based compensation	465			465
Net income (loss) for the period	(7,948)				(7,948)
Balance at Jun. 30, 2023	$ 16,253	$ 49		$ 227,415	$ (211,211)
Balance (in shares) at Jun. 30, 2023		7,543,440

- Definition

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

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+ Details

- Definition

Total of all stockholders' equity (deficit) items, net of receivables from officers, directors, owners, and affiliates of the entity which are attributable to the parent. The amount of the economic entity's stockholders' equity attributable to the parent excludes the amount of stockholders' equity which is allocable to that ownership interest in subsidiary equity which is not attributable to the parent (noncontrolling interest, minority interest). This excludes temporary equity and is sometimes called permanent equity.

+ References

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+ Details

Subsequent Events

6 Months Ended

Jun. 30, 2023

Subsequent Events [Abstract]

Subsequent Events

Note 12. Subsequent Events

On August 4, 2023, we completed a public offering related to the issuance and sale of 8,064,517 shares of our common stock (or pre-funded warrant in lieu thereof) at a purchase price of $0.62. We received $5 million in gross proceeds from issuance of these shares. Our net proceeds from the offering amounted to $4.5 million after placement agent and other fees. Additionally, we issued Series A Common Warrants to purchase up to an aggregate of 8,064,517 shares of common stock and Series B Common Warrants to purchase up to an aggregate of 8,064,517 shares of common stock. The Series A and Series B Common Warrants have an exercise price of $0.62 per share, are exercisable immediately following the date of issuance and will expire in August 2028 and February 2025, respectively. If the warrants are exercised, we may receive up to an additional $10 million in proceeds.

Net Income (Loss) Per Share - Computation of Basic and Diluted Net (Loss) Income per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended				6 Months Ended
	Jun. 30, 2023	Mar. 31, 2023	Jun. 30, 2022	Mar. 31, 2022	Jun. 30, 2023	Jun. 30, 2022
Earnings Per Share [Abstract]
Net (loss) income from continuing operations	$ (7,948)		$ 27,861		$ (6,121)	$ 19,986
Income from discontinued operations	0		149		946	327
Net (loss) income	$ (7,948)	$ 2,773	$ 28,010	$ (7,697)	$ (5,175)	$ 20,313
Basic and diluted net (loss) income per share:
Basic net income per share from continuing operations	$ (1.23)		$ 5.55		$ (0.85)	$ 4.01
Diluted net income per share from continuing operations	(1.23)		5.55		(0.85)	4.01
Basic net income per share from discontinued operations			0.03		0.13	0.07
Diluted net income per share from discontinued operations			0.03		0.13	0.07
Basic net (loss) income per share	(1.23)		5.58		(0.72)	4.08
Diluted net (loss) income per share	$ (1.23)		$ 5.58		$ (0.72)	$ 4.08
Shares used in calculation:
Basic shares used in calculation	6,482,158		5,023,321		7,190,701	4,980,625
Diluted shares used in calculation	6,482,158		5,023,321		7,190,701	4,980,970

Leases (Tables)

6 Months Ended

Jun. 30, 2023

Leases [Abstract]

Components of Lease Expense

Components of lease expense:


	For the Three Months Ended June 30,				For the Six Months Ended June 30,
(in thousands)	2023		2022		2023		2022
Operating lease cost	$	297	$	319	$	594	$	679
Total lease cost	$	297	$	319	$	594	$	679

Summary of Right of Use Assets Acquired Under Operating Leases

Right of use assets acquired under operating leases:


	As of June 30,		As of December 31,
(in thousands)	2023		2022
Seattle office lease, including amendment		5,098		5,303
Total operating leases	$	5,098	$	5,303

Lease payments:


	For the Six Months Ended June 30,
(in thousands)	2023		2022
For operating leases	$	459	$	547

Cash and Cash Equivalents

6 Months Ended

Jun. 30, 2023

Cash And Cash Equivalents [Abstract]

Cash and Cash Equivalents

Note 6. Cash and Cash Equivalents

The Company’s cash equivalents are highly liquid investments with a maturity of 90 days or less at the date of purchase and include time deposits and investments in money market funds.

The following table shows our cash, cash equivalents and restricted cash as of June 30, 2023 and December 31, 2022:


	June 30,		December 31,
(in thousands)	2023		2022
Cash	$	4,034	$	1,066
Cash equivalents		16,972		21,569
Total cash and cash equivalents	$	21,006	$	22,635

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Income Statement [Abstract]
Royalty revenue				$ 3,114
Revenue from Contract with Customer, Product and Service [Extensible List]				us-gaap:RoyaltyMember
Operating expenses:
Research and development	$ (5,462)	$ (3,865)	$ (9,630)	$ (8,731)
General and administrative	(2,716)	(3,697)	(6,304)	(7,556)
Loss from operations	(8,178)	(7,562)	(15,934)	(13,173)
Other income (expense):
Other income (expense) from continuing operations, net	230	(1,759)	163	(4,023)
Gain related to sale of non-financial asset			9,650
Gain on extinguishment of liability related to sale of royalties		37,182		37,182
Net (loss) income from continuing operations	(7,948)	27,861	(6,121)	19,986
Discontinued operations:
Income from discontinued operations		149	946	327
Net (loss) income	$ (7,948)	$ 28,010	$ (5,175)	$ 20,313
Basic and diluted net (loss) income per share from continuing operations:
Basic	$ (1.23)	$ 5.55	$ (0.85)	$ 4.01
Diluted	(1.23)	5.55	(0.85)	4.01
Basic net (loss) income per share	(1.23)	5.58	(0.72)	4.08
Diluted net (loss) income per share	$ (1.23)	$ 5.58	$ (0.72)	$ 4.08
Shares used in calculation:
Basic shares used in calculation	6,482,158	5,023,321	7,190,701	4,980,625
Diluted shares used in calculation	6,482,158	5,023,321	7,190,701	4,980,970

Net Income (Loss) Per Share - Summary of Potentially Dilutive Shares Excluded from Calculation of Net Loss Per Share (Details) - shares shares in Thousands	6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022
Warrants
Schedule Of Earnings Per Share Basic And Diluted [Line Items]
Anti-dilutive shares excluded from calculation of diluted net loss per share	351	351
Outstanding Options to Purchase Common Stock
Schedule Of Earnings Per Share Basic And Diluted [Line Items]
Anti-dilutive shares excluded from calculation of diluted net loss per share	467	362
Unvested RSUs
Schedule Of Earnings Per Share Basic And Diluted [Line Items]
Anti-dilutive shares excluded from calculation of diluted net loss per share	340	151

Net Income (Loss) per Share (Tables)

6 Months Ended

Jun. 30, 2023

Earnings Per Share [Abstract]

Computation of Basic and Diluted Net (Loss) Income per Share

The following table presents the computation of basic and diluted net (loss) income per share (in thousands, except share and per share amounts):


	For the Three Months Ended June 30,					For the Six Months Ended June 30,
	2023			2022		2023			2022
Net (loss) income from continuing operations	$	(7,948	)	$	27,861	$	(6,121	)	$	19,986
Income from discontinued operations		—			149		946			327
Net (loss) income	$	(7,948	)	$	28,010	$	(5,175	)	$	20,313

Basic and diluted net (loss) income per share from continuing operations:
Basic	$	(1.23	)	$	5.55	$	(0.85	)	$	4.01
Diluted	$	(1.23	)	$	5.55	$	(0.85	)	$	4.01
Basic and diluted net income per share from discontinued operations:
Basic	$	—		$	0.03	$	0.13		$	0.07
Diluted	$	—		$	0.03	$	0.13		$	0.07
Basic and diluted net (loss) income per share:
Basic	$	(1.23	)	$	5.58	$	(0.72	)	$	4.08
Diluted	$	(1.23	)	$	5.58	$	(0.72	)	$	4.08
Shares used in calculation:
Basic		6,482,158			5,023,321		7,190,701			4,980,625
Diluted		6,482,158			5,023,321		7,190,701			4,980,970

Summary of Potentially Dilutive Shares Excluded from Calculation of Net Loss Per Share

The following table represents all potentially dilutive shares:


	As of June 30,
(in thousands)	2023		2022
Warrants		351		351
Outstanding options to purchase common stock		467		362
Unvested RSUs		340		151

Subsequent Events - Additional Information (Details) - USD ($) $ / shares in Units, $ in Thousands		6 Months Ended
	Aug. 04, 2023	Jun. 30, 2023	Jun. 30, 2022	Mar. 31, 2019
Subsequent Event [Line Items]
Proceeds from issuance of common stock		$ 2,083	$ 436
Maximum \| Warrants
Subsequent Event [Line Items]
Number of common stock to be issued up conversion of warrants				1,725,000
Subsequent Event
Subsequent Event [Line Items]
Proceeds from initial offering	$ 4,500
Subsequent Event \| Warrants
Subsequent Event [Line Items]
Issuance and sale of common stock	8,064,517
Warrants exercise price, per share	$ 0.62
Proceeds from issuance of common stock	$ 5,000
Subsequent Event \| Warrants \| Series A
Subsequent Event [Line Items]
Warrants exercise price, per share	$ 0.62
Subsequent Event \| Warrants \| Series B
Subsequent Event [Line Items]
Warrants exercise price, per share	$ 0.62
Subsequent Event \| Warrants \| Common Class A And B
Subsequent Event [Line Items]
Additional amount to be received upon exercise of warrants	$ 10,000
Subsequent Event \| Maximum \| Warrants \| Series A
Subsequent Event [Line Items]
Number of common stock to be issued up conversion of warrants	8,064,517
Subsequent Event \| Maximum \| Warrants \| Series B
Subsequent Event [Line Items]
Number of common stock to be issued up conversion of warrants	8,064,517

Leases - Components of Lease Expense (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Leases [Abstract]
Operating lease cost	$ 297	$ 319	$ 594	$ 679
Total lease cost	$ 297	$ 319	$ 594	$ 679

Leases - Summary of Right of Use Assets Acquired Under Operating Leases (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022	May 26, 2022
Lessee Lease Description [Line Items]
Operating lease right-of-use asset	$ 5,098		$ 5,303	$ 4,400
For operating leases	459	$ 547
Seattle Office Lease, Including Amendment
Lessee Lease Description [Line Items]
Operating lease right-of-use asset	$ 5,098		$ 5,303

Collaboration Agreements - Additional Information (Details) - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022
Organization Consolidation And Presentation Of Financial Statements [Abstract]
Research and development expense	$ 1.5	$ 0.3
Percentage of cost related to research and development	50.00%	50.00%

Discontinued Operations - Summary of Reconciliation of Carrying Amounts of Assets and Liabilities and Income (Loss) from Discontinued Operation (Details) - USD ($) $ in Thousands	3 Months Ended	6 Months Ended
	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items]
Deferred payment from Medexus	$ 149	$ 523	$ 327
Income from discontinued operations	$ 149	946	$ 327
Aptevo BioTherapeutics [Member]
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items]
Deferred payment from Medexus		200
Gain on contingent consideration		163
Kamada [Member]
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items]
Gain on contingent consideration		$ 260

- Definition

+ References

+ Details

Debt - Additional Information (Details) - USD ($)	Mar. 29, 2023	Jun. 30, 2023	Aug. 05, 2020
Line Of Credit Facility [Line Items]
Maximum borrowing capacity			$ 25,000,000.0
Debt outstanding		$ 0
Payment Interest Purchase Agreement
Line Of Credit Facility [Line Items]
Repayment of debt	$ 2,800,000
Exit fees	$ 300,000
Credit Agreement
Line Of Credit Facility [Line Items]
Line of credit facility, used borrowing capacity			$ 25,000,000.0

- Definition

Amount, excluding unamortized premium (discount) and debt issuance cost, of long-term debt. Excludes lease obligation.

+ References + Details

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Current assets:
Cash and cash equivalents	$ 21,006	$ 22,635
Royalty and milestone receivable		2,500
Prepaid expenses	910	1,571
Other current assets	764	744
Total current assets	22,680	27,450
Property and equipment, net	1,134	1,462
Operating lease right-of-use asset	5,098	5,303
Total assets	28,912	34,215
Current liabilities:
Accounts payable and other accrued liabilities	4,873	3,499
Accrued compensation	1,292	2,105
Current portion of long-term debt		2,000
Other current liabilities	746	1,102
Total current liabilities	6,911	8,706
Long-term debt		1,456
Operating lease liability	5,748	6,079
Total liabilities	12,659	16,241
Stockholders' equity:
Preferred stock: $0.001 par value; 15,000,000 shares authorized, zero shares issued or outstanding
Common stock: $0.001 par value; 500,000,000 shares authorized; 7,543,440 and 6,466,294 shares issued and outstanding at June 30, 2023 and December 31, 2022, respectively	49	48
Additional paid-in capital	227,415	223,962
Accumulated deficit	(211,211)	(206,036)
Total stockholders' equity	16,253	17,974
Total liabilities and stockholders' equity	$ 28,912	$ 34,215

Debt

6 Months Ended

Jun. 30, 2023

Debt Disclosure [Abstract]

Debt

Note 7. Debt

Credit Agreement

On August 5, 2020, we entered into a Credit Agreement, with MidCap Financial (the "Credit Agreement"). The Credit Agreement provided us with up to $25.0 million of available borrowing capacity under a term loan facility. The full $25.0 million was drawn on the closing date of the Credit Agreement.

On March 29, 2023, we used a portion of the proceeds from our Purchase Agreement with XOMA to fully repay the $2.8 million outstanding principal of our MidCap debt, including payment of $0.3 million in exit fees. The pre-payment was not considered an amendment to our Credit Agreement since we were required to fully repay the remaining principal balance if we sold IXINITY deferred payment stream and milestones. As of June 30, 2023, we do not have any outstanding debt on the balance sheet.

- Definition

The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-URI https://asc.fasb.org/topic&trid=2208564

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-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
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+ Details

Discontinued Operations (Tables)

6 Months Ended

Jun. 30, 2023

Discontinued Operations And Disposal Groups [Abstract]

Summary of Reconciliation of Carrying Amounts of Assets and Liabilities and Income (Loss) from Discontinued Operation

The following table represents the components attributable to income from discontinued operations in the unaudited condensed consolidated statements of operations (in thousands):


	For the Three Months Ended June 30,				For the Six Months Ended June 30,
	2023		2022		2023		2022
Deferred payment from Medexus		—		149		523		327
Gain on contingent consideration from release of escrow related to sale of Aptevo BioTherapeutics		—		—		163		—
Gain on contingent consideration from Kamada		—		—		260		—
Income from discontinued operations	$	—	$	149	$	946	$	327

- Definition

Tabular disclosure of information related to a disposal group. Includes, but is not limited to, a discontinued operation, disposal classified as held-for-sale or disposed of by means other than sale or disposal of an individually significant component.

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+ Details

Equity - Summary of Stock Option Activity (Details) - USD ($) $ / shares in Units, $ in Millions	6 Months Ended	12 Months Ended
	Jun. 30, 2023	Dec. 31, 2022	Jun. 30, 2022
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Aggregate Intrinsic Value, Exercisable	$ 0		$ 0
Stock Option
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Number of Shares, Outstanding, Beginning balance	364,266
Number of Shares, Granted	103,965
Number of Shares, Forfeited	(1,013)
Number of Shares, Outstanding, Ending balance	467,218	364,266
Number of Shares, Exercisable	258,798
Number of Shares, Vested and expected to Vest	397,969
Weighted-Average Exercise Price, Outstanding, Beginning balance	$ 15.77
Weighted-Average Exercise Price, Granted	2.11
Weighted-Average Exercise Price, Forfeited	27.45
Weighted-Average Exercise Price, Outstanding, Ending balance	12.72	$ 15.77
Weighted-Average Exercise Price, Exercisable	15.36
Weighted-Average Exercise Price, Vested and expected to vest	$ 13.77
Weighted-Average Remaining Term, Outstanding	7 years 6 months 21 days	7 years 4 months 20 days
Weighted-Average Remaining Term, Exercisable	6 years 5 months 19 days
Weighted-Average Remaining Term, Vested and expected to vest	7 years 3 months 10 days

Discontinued Operations - Additional Information (Details) - USD ($) $ in Thousands	3 Months Ended	6 Months Ended
	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items]
Deferred payment	$ 149	$ 523	$ 327
Hyperimmune Business
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items]
Deferred payment		300
IXINITY
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items]
Deferred payment		500	$ 300
Aptevo BioTherapeutics
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items]
Deferred payment		$ 200

Equity - Summary of Stock-based Compensation Expense Includes Amortization of Stock Options and Restricted Stock Units Granted (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Stock-based compensation expense	$ 465	$ 484	$ 1,380	$ 1,085
Research and Development
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Stock-based compensation expense	112	53	422	77
General and Administrative
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Stock-based compensation expense	$ 353	$ 431	$ 958	$ 1,008

Leases

6 Months Ended

Jun. 30, 2023

Leases [Abstract]

Leases

Note 9. Leases

Office Space Lease - Operating

We have an operating lease related to our office and laboratory space in Seattle, Washington. This lease was amended in March 2019 to extend the term through April 2030 and provide two options to extend the lease term, each by five years, as well as a one-time option to terminate the lease in April 2023, with nine months’ notice, or by July 2022. We had previously determined we should not include any periods after the termination option when evaluating this amendment as we were not reasonably certain to not exercise the option, therefore we recorded our liability through April 30, 2023.

On May 26, 2022, we amended our office and laboratory lease to remove the one-time termination option. In exchange for removing the termination option, we received six months of free rent. As a result, we recorded an additional $4.4 million of lease liability and right-of-use asset on the consolidated balance sheet on the date of the amendment. As of June 30, 2023, we are not reasonably certain to exercise the two options to extend the lease term. Therefore, pursuant to our May 26, 2022 amendment, we recorded our lease liability through April 30, 2030.

For the three and six months ended June 30, 2023 and 2022, we recorded $0.2 million and $0.4 million, respectively, related to variable lease expense.

Components of lease expense:


	For the Three Months Ended June 30,				For the Six Months Ended June 30,
(in thousands)	2023		2022		2023		2022
Operating lease cost	$	297	$	319	$	594	$	679
Total lease cost	$	297	$	319	$	594	$	679

Right of use assets acquired under operating leases:


	As of June 30,		As of December 31,
(in thousands)	2023		2022
Seattle office lease, including amendment		5,098		5,303
Total operating leases	$	5,098	$	5,303

Lease payments:


	For the Six Months Ended June 30,
(in thousands)	2023		2022
For operating leases	$	459	$	547

As of June 30, 2023, the long-term and current portion of the lease liabilities is $5.7 million and $0.6 million, respectively. As of June 30, 2022, the long-term and current portion of the lease liabilities were $6.4 million and $0.03 million.

As of June 30, 2023, the weighted-average remaining lease term and weighted-average discount rate for operating leases was 6.84 years and 12.03%. As of June 30, 2022, the weighted-average remaining lease term and weighted-average discount rate for operating leases was 7.83 years and 12.03%.

Equity - Assumptions used in Valuing the Stock Options Granted under Black-Scholes Valuation Model (Details) - Stock Option	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Expected dividend yield	0.00%	0.00%
Expected volatility			103.63%	106.30%
Risk-free interest rate			4.18%	1.60%
Expected average life of options			5 years	5 years

Liability Related to Sale of Royalties - Schedule of Changes in the Liability Related to the Sale of Royalties (Details) - USD ($) $ in Thousands		3 Months Ended	6 Months Ended
	Jun. 07, 2022	Jun. 30, 2022	Jun. 30, 2022
Debt Disclosure [Abstract]
Liability related to sale of royalties, beginning balance			$ 31,045
Proceeds from milestone payments, net of transaction costs			9,500
Non-cash interest expense			3,416
RUXIENCE royalties paid by Pfizer to HCR			(6,779)
Gain on extinguishment of liability related to sale of royalties	$ (37,200)	$ (37,200)	(37,182)
Liability related to sale of royalties, ending balance		$ 0	$ 0

XOMA Transaction

6 Months Ended

Jun. 30, 2023

XOMA Transaction

Note 3. XOMA Transaction

On March 29, 2023, we entered into and closed a Purchase Agreement with XOMA pursuant to which we sold to XOMA our right, title and interest in and to all of the deferred payments and a portion of the milestone payments from Medexus under our 2020 LLC Purchase Agreement. Under the terms of our Purchase Agreement with XOMA, we received $9.6 million at closing (the “Closing Payment”) and an additional post-closing payment of $0.05 million (the “Post-Closing Payment”). In exchange for the Closing Payment, we sold to XOMA our right, title and interest to the following payments under the LLC Purchase Agreement: (i) 100% of the Company’s entitlement to receive the deferred payments that may become due and payable following March 29, 2023 (including, for avoidance of doubt, any and all payments earned during Q1 2023), (ii) 25% of the Company’s entitlement to receive the Canadian Approval Milestone Payment; and (iii) 50% of the Company’s entitlement to receive the European Approval Milestone Payments and Net Sales Milestone Payment.

We accounted for the $9.6 million Closing Payment and the $0.05 million post-closing payment from XOMA as other income in accordance with ASC 610-20 Other Income - Gains and Losses from the Derecognition of Nonfinancial Assets in the first quarter of 2023. Contractual rights sold to XOMA represent an intangible asset under ASC 610-20 Other Income - Gains and Losses from the Derecognition of Nonfinancial Assets for which XOMA bears all benefit and Aptevo has no obligations going forward. The Company will continue to account for its portion of future milestones under our LLC Purchase Agreement with Medexus as contingent consideration under ASC 450-30 Gain Contingencies and will record income when proceeds are received.

Cash and Cash Equivalents (Tables)

6 Months Ended

Jun. 30, 2023

Cash And Cash Equivalents [Abstract]

Schedule of Cash, Cash Equivalents and Restricted Cash, Both Current and Long-term Portion

The following table shows our cash, cash equivalents and restricted cash as of June 30, 2023 and December 31, 2022:


	June 30,		December 31,
(in thousands)	2023		2022
Cash	$	4,034	$	1,066
Cash equivalents		16,972		21,569
Total cash and cash equivalents	$	21,006	$	22,635

Liability Related to Sale of Royalties - Additional Information (Details) - USD ($) $ in Thousands				1 Months Ended	3 Months Ended	6 Months Ended		27 Months Ended
	Feb. 28, 2023	Jun. 07, 2022	Mar. 08, 2022	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023
Debt Instrument [Line Items]
Proceeds from sale of investments				$ 35,000		$ 12,500		$ 47,500
Closing payments				35,000
Milestone payment	$ 2,500		$ 10,000			12,500
Additional milestone payment						10,000		10,000
Transaction costs							$ 500
Proceeds from milestones related to sale of royalties							10,000
Gain from extinguishment of liability related to sale of royalties		$ 37,200			$ 37,200		$ 37,182
HCR
Debt Instrument [Line Items]
Milestone payment						10,000
Transaction costs				$ 1,100		1,100		$ 1,100
HCR \| Liability
Debt Instrument [Line Items]
Proceeds from royalties received						$ 35,000

Nature of Business and Significant Accounting Policies (Policies)	6 Months Ended
	Jun. 30, 2023
Accounting Policies [Abstract]
Basis of Presentation	Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (GAAP). These unaudited condensed consolidated financial statements include all adjustments, which include normal recurring adjustments, necessary for the fair presentation of the Company’s financial position. These unaudited interim consolidated financial statements should be read in conjunction with the audited consolidated financial statements as of and for the year ended December 31, 2022, and the notes thereto, which are included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2022. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from these estimates and changes in these estimates are recorded when known. The unaudited condensed consolidated financial statements include the accounts of the Company and our wholly owned subsidiary, Aptevo Research and Development LLC. All intercompany balances and transactions have been eliminated.
Use of Estimates	Use of Estimates The preparation of financial statements in conformity with GAAP requires estimates and assumptions that affect the reported amounts of assets and liabilities, revenues and expenses, and related disclosures of contingent liabilities in the unaudited condensed financial statements and accompanying notes. Estimates are used for, but not limited to, clinical accruals, useful lives of equipment, commitments and contingencies, stock-based compensation, and incremental borrowing rate (IBR) used for our lease. Given the global economic and geopolitical climate, these estimates are becoming more challenging, and actual results could differ materially from those estimates.
Gain Related to Sale of Nonfinancial Asset	Gain Related to Sale of Nonfinancial Asset to XOMA (US) LLC On March 29, 2023, we entered into and closed a payment interest purchase agreement (the “Purchase Agreement”) with XOMA (US) LLC (“XOMA”) pursuant to which we sold to XOMA our right, title and interest in all of the deferred payments and a portion of the milestone payments from Medexus pursuant to our LLC Purchase Agreement. Under the terms of the Purchase Agreement, we received $9.6 million at closing (the “Closing Payment”) and an additional post-closing payment of $0.05 million post-closing payment. In exchange for the Closing Payment, the Company sold to XOMA its right, title and interest to the following payments under the LLC Purchase Agreement: (i) 100% of the Company’s entitlement to receive the deferred payments that may become due and payable following March 29, 2023 (including, for avoidance of doubt, any and all payments earned during Q1 2023), (ii) 25% of the milestone payment upon receipt of a Notice of Compliance for IXINITY from Health Canada (the "Canadian Approval Milestone Payment"); and (iii) 50% of the milestone payments upon receipt of regulatory approval in each of Germany, France, the United Kingdom, Spain and Italy (the "European Approval Milestone Payments") and when the worldwide net sales of IXINITY for a fiscal year meet or exceed $120 million (the "Net Sales Milestone Payment"). We accounted for the $9.6 million Closing Payment and the $0.05 million post-closing payment from XOMA as other income in accordance with Accounting Standards Codification (ASC) 610-20 Other Income - Gains and Losses from the Derecognition of Nonfinancial Assets in the first quarter of 2023. Contractual rights sold to XOMA represent an intangible asset under ASC 610-20 Other Income - Gains and Losses from the Derecognition of Nonfinancial Assets for which XOMA bears all benefit and Aptevo has no obligations going forward. The Company will continue to account for its portion of future milestones under our LLC Purchase Agreement with Medexus as contingent consideration under ASC 450-30 Gain Contingencies and will record income when proceeds are received.
Liability Related to Sale of Future Royalties and Non-Cash Interest Expense	Liability Related to Sale of Royalties and Non-Cash Interest Expense On March 30, 2021, we entered into and closed a Royalty Purchase Agreement with HCR pursuant to which we sold to HCR the right to receive royalty payments made by Pfizer in respect of global net sales of RUXIENCE. Under the terms of the Royalty Purchase Agreement, we have received $47.5 million through June 30, 2023 ($35 million at closing and $12.5 million in milestone payments) and we are eligible to receive an additional $10 million based on the achievement of sales milestone 2023. Through March 31, 2022, we accounted for the Royalty Purchase Agreement with HCR as a debt-like instrument, amortized under the effective interest rate method over the life of the related expected royalty stream. The liabilities related to the sale of royalties and the debt amortization were based on our estimates of royalties expected to be paid over the life of the arrangement. We received the 2021 milestone payments in the collective amount of $10 million on March 8, 2022. The proceeds from these milestone payments, net of transaction costs, were recorded as an additional liability related to the sale of royalties on the consolidated balance sheet as of March 31, 2022 pursuant to ASC 470-10-25, Debt – Sales of Future Revenues or Various Other Measures of Income. On June 7, 2022, we entered into and closed an amendment to the Royalty Purchase Agreement (the "Amendment to Royalty Purchase Agreement") (see Note 8) which removed all restrictions related to HCR’s rate of return, and it is no longer a sale of a specified percentage of royalty revenue. The Amendment to Royalty Purchase Agreement was accounted for under ASC 610-20, Gains and Losses from Derecognition of Nonfinancial Assets and ASC 405-20, Liabilities – Extinguishment of Liabilities and the transaction was no longer considered a debt-like financing. As a result of the Amendment to Royalty Purchase Agreement, the Company recognized a gain of $37.2 million in the second quarter of 2022, which was the total balance of liability related to the sale of royalties on the closing date. Future milestone payments will be accounted for as variable consideration and recognized as other income when such milestones are earned using the most likely method in accordance with ASC 610-20 Other Income — Gains and Losses from the Derecognition of Nonfinancial Assets. We received the 2022 milestone payment of $2.5 million on February 28, 2023. The proceeds from the 2022 milestone payment were recorded as other income in the consolidated statement of operations for the year ended December 31, 2022. The Company is eligible to receive an additional milestone payment of $10 million based on achievement of sales milestone in 2023.
Royalty Revenue	Royalty Revenue We recognized revenue in accordance with ASC 606, Revenue from Contracts with Customers. Under ASC 606, an entity recognizes revenue when its customer obtains control of promised goods or services, in an amount that reflects the consideration that the entity expects to receive in exchange for those goods or services. To determine revenue recognition for arrangements that an entity determines are within the scope of ASC 606, the entity performs the following five steps: (i) identify the contract(s) with a customer; (ii) identify the performance obligations in the contract; (iii) determine the transaction price; (iv) allocate the transaction price to the performance obligations in the contract; and (v) recognize revenue when (or as) the entity satisfies a performance obligation. RUXIENCE Royalty Revenue Aptevo’s royalty revenue was exclusively related to royalties on Pfizer’s net sales of RUXIENCE. We did not recognize royalty revenue for the six months ended June 30, 2023. Royalty revenue for the period covered by this report reflects revenue recorded only in the first quarter of 2022 due to our Amendment to Royalty Purchase Agreement with HCR (see Note 8). As a result of the Amendment to Royalty Purchase Agreement, we ceased reporting as royalty revenue, royalties paid by Pfizer to HCR related to Pfizer’s sales of RUXIENCE. We recognized royalty revenue under ASC 606, which provides revenue recognition constraints by requiring the recognition of revenue at the later of the following: (1) when the subsequent sale or usage occurs or (2) when the performance obligation to which some or all of the sales-based or usage-based royalty has been allocated has been satisfied (or partially satisfied). We satisfied our performance obligation prior to the period covered by this report, specifically in May 2011 when the original Collaboration and License Agreement between Trubion Pharmaceuticals and Wyeth was amended to remove the exclusivity/non-compete restrictions so that Pfizer could develop a CD20 biosimilar product in exchange for a one-time payment of $2.5 million and future royalties of 2.5% on any CD20 biosimilar product commercialized by Pfizer in the future. We do not have future performance obligations under this agreement. We applied the royalty recognition constraint required under the guidance for sales-based royalties, which requires a sales-based royalty to be recorded no sooner than the underlying sale. Therefore, royalties on sales of products commercialized by Pfizer were recognized in the quarter the product is sold. Given the royalty revenues were based on 2.5% of global net sales of RUXIENCE, the considerations were considered variable. Pfizer generally reported sales information to us within 60 days of quarter end. Unless we received finalized sales information for the respective quarter, we estimated the expected royalty proceeds based on an analysis of historical experience, analyst expectations, interim data provided by Pfizer, including their publicly announced sales, and other publicly available information. Differences between actual and estimated royalty revenues were adjusted for in the period in which they became known, typically the following quarter. Aptevo did not record revenue for the six months ended June 30, 2023 due to our Amendment to Royalty Purchase Agreement. Revenue recorded for the six months ended June 30, 2022 represents actual royalty revenue given the timing of RUXIENCE sales reports received from Pfizer. There was no significant financing component to the contract.
Debt Modification	Debt Modification On March 29, 2023, we used a portion of the proceeds from our Purchase Agreement with XOMA to fully repay the $2.8 million outstanding principal balance of our MidCap debt, and $0.3 million in exit fees. The pre-payment was not considered an amendment to our Credit Agreement (as defined below) since we were required to fully repay the remaining principal balance if we sold our IXINITY deferred payment stream and milestones.
Other Significant Accounting Policies	Other Significant Accounting Policies Our other significant accounting policies were reported in our Annual Report on Form 10-K for the year ended December 31, 2022 that was filed with the SEC on March 30, 2023. Our other significant accounting policies have not changed materially from the policies previously reported.

Nature of Business and Significant Accounting Policies - Additional Information (Details) $ in Thousands						1 Months Ended		3 Months Ended				6 Months Ended		27 Months Ended
	Aug. 04, 2023 USD ($)	Mar. 29, 2023 USD ($)	Feb. 28, 2023 USD ($)	Jun. 07, 2022 USD ($)	Mar. 08, 2022 USD ($)	Jun. 30, 2023 USD ($) Platform	Mar. 31, 2022	Jun. 30, 2023 USD ($) Platform	Mar. 31, 2023 USD ($)	Jun. 30, 2022 USD ($)	Mar. 31, 2022 USD ($)	Jun. 30, 2023 USD ($) Platform	Jun. 30, 2022 USD ($)	Jun. 30, 2023 USD ($) Platform	Dec. 31, 2022 USD ($)
Nature Of Business [Line Items]
Number of technology platforms \| Platform						2		2				2		2
Net income (loss)								$ (7,948)	$ 2,773	$ 28,010	$ (7,697)	$ (5,175)	$ 20,313
Accumulated deficit						$ (211,211)		(211,211)				(211,211)		$ (211,211)	$ (206,036)
Net cash used in operating activities												(237)	(8,187)
Income from discontinued operations										149		946	327
Deferred payment from Medexus										149		523	327
Proceeds from sale of investments						35,000						12,500		47,500
Additional milestone payment												10,000		10,000
Milestone payment			$ 2,500		$ 10,000							12,500
Gain from extinguishment of liability related to sale of royalties				$ 37,200						$ 37,200			37,182
One time payment of royalties													6,779
Proceeds from issuance of common stock												2,083	436
Subsequent Event
Nature Of Business [Line Items]
Proceeds from initial offering	$ 4,500
Subsequent Event \| Warrants
Nature Of Business [Line Items]
Proceeds from issuance of common stock	$ 5,000
IXINITY
Nature Of Business [Line Items]
Deferred payment from Medexus												500	$ 300
Discontinued operation, revenue		$ 120,000
RUXIENCE
Nature Of Business [Line Items]
One time payment of royalties												$ 2,500
Royalty revenue							2.50%					2.50%
Payment Interest Purchase Agreement
Nature Of Business [Line Items]
Income from discontinued operations		9,600
Additional post-closing payment		$ 50
Percentage of entitlement to receive deferred payments		100.00%
Percentage of entitlement to receive Canadian approval milestone payment		25.00%
Percentage of entitlement to receive European approval milestone payment		50.00%
Repayment of debt		$ 2,800
Exit fees		$ 300
Payment Interest Purchase Agreement \| ASC 610-20
Nature Of Business [Line Items]
Income from discontinued operations												$ 9,600
Additional post-closing payment												50
Nasdaq Capital Market
Nature Of Business [Line Items]
Net income (loss)												(5,200)
Accumulated deficit						$ 211,200		$ 211,200				211,200		$ 211,200
Net cash used in operating activities												$ 200

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022
Operating Activities
Net (loss) income	$ (5,175)	$ 20,313
Adjustments to reconcile net (loss) income to net cash used in operating activities:
Stock-based compensation	1,380	1,086
Depreciation and amortization	328	518
Non-cash interest expense and other	10	3,290
Gain on extinguishment of liability related to sale of royalties		(37,182)
Changes in operating assets and liabilities:
Royalty receivable	2,500	3,664
Prepaid expenses and other current assets	641	1,248
Operating lease right-of-use asset	205	444
Accounts payable, accrued compensation and other liabilities	205	(2,245)
Long-term operating lease liability	(331)	677
Net cash used in operating activities	(237)	(8,187)
Investing Activities
Purchases of property and equipment		(25)
Net cash used in investing activities		(25)
Financing Activities
Payments of long-term debt, including fees	(3,467)	(11,267)
Repayments under liability related to sale of royalties		(6,779)
Value of equity awards withheld for tax liability	(8)	(4)
Proceeds from milestones related to sale of royalties		10,000
Transaction costs for milestones related to sale of royalties		(500)
Proceeds from issuance of common stock	2,083	436
Net cash used in financing activities	(1,392)	(8,114)
Decrease in cash and cash equivalents	(1,629)	(16,326)
Cash and cash equivalents at beginning of period	22,635	46,303
Cash and cash equivalents at end of period	$ 21,006	29,977
Supplemental Cash Flow Elements [Abstract]
Change in ROU asset and lease liability from lease remeasurement		$ 4,372

Equity (Tables)

6 Months Ended

Jun. 30, 2023

Equity [Abstract]

Summary of Stock-based Compensation Expense Includes Amortization of Stock Options and Restricted Stock Units Granted

Stock-Based Compensation Expense

Stock-based compensation expense includes amortization of stock options and RSUs granted to employees and non-employees and has been reported in our unaudited condensed consolidated statements of operations as follows:


	For the Three Months Ended June 30,				For the Six Months Ended June 30,
(in thousands)	2023		2022		2023		2022
Research and development	$	112	$	53	$	422	$	77
General and administrative		353		431		958		1,008
Total stock-based compensation expense	$	465	$	484	$	1,380	$	1,085

Assumptions used in Valuing the Stock Options Granted under Black-Scholes Valuation Model

Aptevo utilizes the Black-Scholes valuation model for estimating the fair value of all stock options granted. Set forth below are the assumptions used in valuing the stock options granted:


	For the Three Months Ended June 30,				For the Six Months Ended June 30,
	2023		2022		2023		2022
Expected dividend yield		—		—		—		—
Expected volatility		—		—	103.63%		106.30%
Risk-free interest rate		—		—	4.18%		1.60%
Expected average life of options		—		—	5 years		5 years

Summary of Stock Option Activity

The following is a summary of option activity for the six months ended June 30, 2023:


	Number of Shares			Weighted- Average Exercise Price		Weighted- Average Remaining Term
Balance at December 31, 2022		364,266		$	15.77		7.39
Granted		103,965			2.11		—
Exercised		—			—		—
Forfeited		(1,013	)		27.45		—
Outstanding at June 30, 2023		467,218			12.72		7.56
Exercisable at June 30, 2023		258,798			15.36		6.47
Vested and expected to vest at June 30, 2023		397,969			13.77		7.28

Summary of RSU Activity

The following is a summary of RSU activity for the six months ended June 30, 2023:


	Number of Units			Weighted Average Fair Value per Unit
Balance at December 31, 2022		223,775		$	8.47
Granted		168,168			2.09
Vested		(50,525	)		12.13
Forfeited		(1,414	)		3.43
Outstanding and expected to vest at June 30, 2023		340,004		$	4.79

Document and Entity Information - shares	6 Months Ended
Document and Entity Information - shares	Jun. 30, 2023	Aug. 10, 2023
Cover [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Jun. 30, 2023
Document Fiscal Year Focus	2023
Document Fiscal Period Focus	Q2
Trading Symbol	APVO
Entity Registrant Name	APTEVO THERAPEUTICS INC.
Entity Central Index Key	0001671584
Current Fiscal Year End Date	--12-31
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Document Transition Report	false
Document Quarterly Report	true
Entity Interactive Data Current	Yes
Entity Common Stock, Shares Outstanding		11,523,716
Title of 12(b) Security	Common Stock, $0.001 par value per share
Security Exchange Name	NASDAQ
Entity Address, Address Line One	2401 4th Avenue
Entity Address, Address Line Two	Suite 1050
Entity Address, City or Town	Seattle
Entity Address, State or Province	WA
Entity Address, Postal Zip Code	98121
City Area Code	206
Local Phone Number	838-0500
Entity Incorporation, State or Country Code	DE
Entity Current Reporting Status	Yes
Entity Tax Identification Number	81-1567056
Entity File Number	001-37746

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - $ / shares	Jun. 30, 2023	Dec. 31, 2022
Statement Of Financial Position [Abstract]
Preferred stock, par value	$ 0.001	$ 0.001
Preferred stock, shares authorized	15,000,000	15,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value	$ 0.001	$ 0.001
Common stock, shares authorized	500,000,000	500,000,000
Common stock, shares issued	7,543,440	6,466,294
Common stock, shares outstanding	7,543,440	6,466,294

Cash and Cash Equivalents - Schedule of Cash, Cash Equivalents and Restricted Cash, Both Current and Long-term Portion (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Cash And Cash Equivalents [Abstract]
Cash	$ 4,034	$ 1,066
Cash equivalents	16,972	21,569
Total cash and cash equivalents	$ 21,006	$ 22,635

Equity

6 Months Ended

Jun. 30, 2023

Equity [Abstract]

Equity

Note 11. Equity

Equity Distribution Agreement

On December 14, 2020, we entered into an Equity Distribution Agreement with Piper Sandler (the "Equity Distribution Agreement"). The Equity Distribution Agreement provides that, upon the terms and subject to the conditions set forth therein, we may issue and sell through Piper Sandler, acting as sales agent, shares of our common stock, $0.001 par value per share having an aggregate offering price of up to $50.0 million. This offering supersedes and replaces the program we commenced in December 2017. We have no obligation to sell any such shares under the Equity Distribution Agreement. The shares of common stock by Piper Sandler will be sold pursuant to a Registration Statement on Form S-3 which we filed on December 14, 2020. In the six months ended June 30, 2023, the Company issued 730,913 shares of common stock at an average price of $2.26 under the Equity Distribution Agreement. We received $1.6 million in proceeds from the issuance of these shares. In the six months ended June 30, 2022, the Company issued 78,285 shares of common stock at an average price of $5.75 under the Equity Distribution Agreement. We received $0.4 million in proceeds from the issuance of these shares.

Lincoln Park Purchase Agreement

On February 16, 2022, we entered into a Purchase Agreement ("2022 Purchase Agreement") and a Registration Rights Agreement with Lincoln Park (the "Registration Rights Agreement"). The 2022 Purchase Agreement and Registration Rights Agreement replaced our 2018 Purchase Agreement and Registration Rights Agreement with Lincoln Park. Under the 2022 Purchase Agreement, Lincoln Park committed to purchase up to $35.0 million of our common stock over a 36-month period commencing after the satisfaction of certain conditions, which are within our control, as set forth in the 2022 Purchase Agreement. The purchase price per share will be based on prevailing market prices; provided, however, that the prevailing market price is not below $1.00. We agreed to and issued 99,276 shares of our common stock to Lincoln Park for no cash consideration as an initial fee for its commitment to purchase shares of our common stock under the 2022 Purchase Agreement. For the six months ended June 30, 2023, we issued 300,000 shares of our common stock to Lincoln Park under the 2022 Purchase Agreement and we received $0.5 million in proceeds from issuance of these shares. We did not issue any shares of our common stock for cash consideration to Lincoln Park under the 2022 Purchase Agreement in the six months ended June 30, 2022.

Rights Plan

On November 8, 2020, our Board of Directors (the "Board") approved and adopted a Rights Agreement (the "Rights Agreement"), dated as of November 8, 2020, by and between the Company and Broadridge Corporate Issuer Solutions, Inc., as rights agent, pursuant to which the Board declared a dividend of one preferred share purchase right (each, a "Right") for each outstanding share of the Company’s common stock held by stockholders as of the close of business on November 23, 2020. One Right also will be issued together with each Common Share issued by the Company after November 23, 2020, but before the Distribution Date (as defined below) (or the earlier redemption or expiration of the Rights) and, in certain circumstances, after the Distribution Date. When exercisable, each Right initially would represent the right to purchase from the Company one one-thousandth of a share of a newly-designated series of preferred stock, Series A Junior Participating Preferred Stock, par value $0.001 per share, of the Company, at an exercise price of $400.00 per one one-thousandth of a Series A Junior Participating Preferred Share, subject to adjustment. Subject to various exceptions, the Rights become exercisable in the event any person (excluding certain exempted or grandfathered persons) becomes the beneficial owner of ten percent (10%) or more of the Company’s common stock without the approval of the Board. The Rights Agreement was amended on November 4, 2021 to extend the expiration date of such agreement from November 8, 2021 to November 5, 2022 and further amended on November 4, 2022 to extend the expiration of such agreement to November 4, 2023.

2016 Stock Incentive Plan

On August 1, 2016, the Company adopted the 2016 Stock Incentive Plan ("2016 SIP"). A total of 0.2 million shares of Aptevo common stock have been authorized for issuance under the 2016 SIP in the form of equity stock options.

2018 Stock Incentive Plan

On June 1, 2018, at the 2018 Annual Meeting of the Stockholders, the Company’s stockholders approved a new 2018 Stock Incentive Plan (the "2018 SIP"), which replaced the Restated 2016 Plan on a go-forward basis. All stock options, RSUs or other equity awards granted subsequent to June 1, 2018 have been and will be issued out of the 2018 SIP, which has 0.3 million shares of Aptevo common stock authorized for issuance. The 2018 Plan became effective immediately upon stockholder approval at the 2018 Annual Meeting of the Stockholders. Any shares subject to outstanding stock awards granted under the 2016 SIP that (a) expire or terminate for any reason prior to exercise or settlement; (b) are forfeited because of the failure to meet a contingency or condition required to vest such shares or otherwise return to the Company; or (c) otherwise would have returned to the 2016 SIP for future grant pursuant to the terms of the 2016 Plan (such shares, the “Returning Shares”) will immediately be added to the share reserve under the 2018 SIP as and when such shares become Returning Shares, up to a maximum of 0.3 million shares.

On June 7, 2022, at the 2022 Annual Meeting of Stockholders, our stockholders approved the Amended and Restated 2018 SIP to increase the number of shares authorized for issuance under the 2018 SIP by 500,000 shares of common stock. As of June 30, 2023, there are approximately 0.1 million shares available to be granted under the 2018 SIP.

Stock options and RSUs under the Amended and Restated 2018 SIP generally vest pro rata over a one-year or three-year period. Stock options terminate ten years from the grant date, though the specific terms of each grant are determined individually. The Company’s executive officers, members of our board of directors, and certain other employees and consultants may be awarded options and/or RSUs with different vesting criteria, and awards granted to non-employee directors will vest over a one-year period. Option exercise and RSU grant prices for new awards granted by the Company equal the closing price of the Company’s common stock on the Nasdaq Capital Market on the date of grant.

Stock-Based Compensation Expense


	For the Three Months Ended June 30,				For the Six Months Ended June 30,
(in thousands)	2023		2022		2023		2022
Research and development	$	112	$	53	$	422	$	77
General and administrative		353		431		958		1,008
Total stock-based compensation expense	$	465	$	484	$	1,380	$	1,085

The Company accounts for stock-based compensation by measuring the cost of employee services received in exchange for all equity awards granted based on the fair value of the award as of the grant date. The Company recognizes the compensation expense over the vesting period. All assumptions used to calculate the grant date fair value of non-employee equity awards are generally consistent with the assumptions used for equity awards granted to employees. In the event the Company terminates any of its consulting agreements, the unvested equity underlying the agreements would also be forfeited.

Stock Options

Aptevo utilizes the Black-Scholes valuation model for estimating the fair value of all stock options granted. Set forth below are the assumptions used in valuing the stock options granted:


	For the Three Months Ended June 30,				For the Six Months Ended June 30,
	2023		2022		2023		2022
Expected dividend yield		—		—		—		—
Expected volatility		—		—	103.63%		106.30%
Risk-free interest rate		—		—	4.18%		1.60%
Expected average life of options		—		—	5 years		5 years

For the six months ended June 30, 2023, management has applied an estimated forfeiture rate of 30%. For the three and six months ended June 30, 2022, management has applied an estimated forfeiture rate of 31% and 30%, respectively. Expected volatility slightly decreased as our stock price fluctuated from a low of $1.34 to a high of $2.08 for the six months ended June 30, 2023, compared to a low of $3.26 to a high of $6.30 for the six months ended June 30, 2022.

The following is a summary of option activity for the six months ended June 30, 2023:


	Number of Shares			Weighted- Average Exercise Price		Weighted- Average Remaining Term
Balance at December 31, 2022		364,266		$	15.77		7.39
Granted		103,965			2.11		—
Exercised		—			—		—
Forfeited		(1,013	)		27.45		—
Outstanding at June 30, 2023		467,218			12.72		7.56
Exercisable at June 30, 2023		258,798			15.36		6.47
Vested and expected to vest at June 30, 2023		397,969			13.77		7.28

As of June 30, 2023, we had $1.2 million of unrecognized compensation expense related to options expected to vest over a weighted-average remaining vesting period of 1.1 years. The weighted-average grant date fair value per share of options granted during the six months ended June 30, 2023 and 2022 was $1.68 and $4.43, respectively. The aggregate intrinsic value of options exercised for the six months ended June 30, 2023 and 2022 was $0. The total fair value of stock options vested for the six months ended June 30, 2023 and 2022 was $1.1 million and $1.2 million, respectively.

The aggregate intrinsic value is the total pretax intrinsic value (the difference between the closing stock price of Aptevo’s common stock on the last trading day of June 2023 and the exercise price, multiplied by the number of in the money options) that would have been received by the option holders had all the option holders exercised their options on the last trading day of the quarter.

Restricted Stock Units

The following is a summary of RSU activity for the six months ended June 30, 2023:


	Number of Units			Weighted Average Fair Value per Unit
Balance at December 31, 2022		223,775		$	8.47
Granted		168,168			2.09
Vested		(50,525	)		12.13
Forfeited		(1,414	)		3.43
Outstanding and expected to vest at June 30, 2023		340,004		$	4.79

As of June 30, 2023, there was $1.3 million unrecognized stock-based compensation expense related to unvested RSUs expected to vest over the weighted-average period of 1.5 years.

The fair value of each RSU has been determined to be the closing trading price of the Company’s common stock on the date of grant as quoted on the Nasdaq Capital Market.

Warrants

In March 2019, as part of a public offering, we issued warrants to purchase up to 1,725,000 shares of our common stock, 1,571,429 of which have an exercise price of $18.20 per share and have a five-year life, and 153,571 of pre-funded warrants with an exercise price of $0.14 per share. The pre-funded warrants had a ten-year life and would have expired on March 11, 2029; however, all of the pre-funded warrants were exercised in March 2019. We determined the warrants do not meet liability classification pursuant to ASC 480 – Distinguishing Liabilities from Equity. These are therefore included within equity on our unaudited condensed consolidated balance sheet. For the six months ended June 30, 2023 and 2022, the Company did not have any of its warrants exercised. As of June 30, 2023 and 2022, there were warrants to purchase 350,589 shares of common stock outstanding.