0000950170-23-010757 | 10-K | XBRL Viewer

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Document and Entity Information - USD ($) $ in Millions	12 Months Ended
Document and Entity Information - USD ($) $ in Millions	Dec. 31, 2022	Mar. 30, 2023	Jun. 30, 2022
Cover [Abstract]
Document Type	10-K
Amendment Flag	false
Document Period End Date	Dec. 31, 2022
Document Fiscal Year Focus	2022
Document Fiscal Period Focus	FY
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 Well-known Seasoned Issuer	No
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Interactive Data Current	Yes
Entity Shell Company	false
Entity Small Business	true
Entity Emerging Growth Company	false
ICFR Auditor Attestation Flag	false
Entity Common Stock, Shares Outstanding		7,239,471
Entity Public Float			$ 18
Title of 12(b) Security	Common Stock, $0.001 par value per share
Security Exchange Name	NASDAQ
Entity File Number	001-37746
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	81-1567056
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
Document Annual Report	true
Document Transition Report	false
Documents Incorporated by Reference	Portions of the Registrant’s definitive proxy statement to be filed with the Securities and Exchange Commission pursuant to Regulation 14A, not later than 120 days after the end of the fiscal year covered by this Annual Report on Form 10-K, relating to the Registrant’s 2023 Annual Meeting of Stockholders are incorporated by reference into Part III of this Report.
Auditor Name	Moss Adams LLP
Auditor Firm ID	659
Auditor Location	Seattle, WA

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Current assets:
Cash and cash equivalents	$ 22,635	$ 45,044
Restricted cash		1,259
Royalty and milestone receivable	2,500	3,664
Prepaid expenses	1,571	1,823
Other current assets	744	780
Total current assets	27,450	52,570
Property and equipment, net	1,462	2,379
Operating lease right-of-use asset	5,303	1,584
Other assets		68
Total assets	34,215	56,601
Current liabilities:
Accounts payable and other accrued liabilities	3,499	3,462
Accrued compensation	2,105	2,077
Liability related to the sale of royalties, net - short-term		15,465
Current portion of long-term debt	2,000	11,667
Other current liabilities	1,102	2,086
Total current liabilities	8,706	34,757
Liability related to the sale of royalties, net - long-term		15,580
Long-term debt	1,456	3,707
Operating lease liability	6,079	1,341
Total liabilities	16,241	55,385
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; 4,898,143 and 4,898,143 shares issued and outstanding at December 31, 2022 and December 31, 2021, respectively	48	47
Additional paid-in capital	223,962	215,232
Accumulated deficit	(206,036)	(214,063)
Total stockholders' equity	17,974	1,216
Total liabilities and stockholders' equity	$ 34,215	$ 56,601

CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Dec. 31, 2022	Dec. 31, 2021
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	6,466,294	4,898,143
Common stock, shares outstanding	6,466,294	4,898,143

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Income Statement [Abstract]
Royalty revenue	$ 3,114	$ 12,292
Revenue from Contract with Customer, Product and Service [Extensible List]	us-gaap:RoyaltyMember	us-gaap:RoyaltyMember
Operating expenses:
Research and development	$ (17,882)	$ (18,994)
General and administrative	(13,873)	(14,698)
Loss from operations	(28,641)	(21,400)
Other income (expense):
Other expense from continuing operations, net	(4,027)	(8,008)
Gain on extinguishment of liability related to sale of royalties	37,182
Milestone income related to sale of royalties	2,500
Net income (loss) from continuing operations	7,014	(29,408)
Discontinued operations:
Income from discontinued operations	1,013	951
Net income (loss)	$ 8,027	$ (28,457)
Net income (loss) per share:
Basic	$ 1.57	$ (6.07)
Diluted	$ 1.57	$ (6.07)
Shares used in calculation:
Basic	5,100,310	4,687,952
Diluted	5,102,914	4,687,952

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Operating Activities
Net income (loss)	$ 8,027	$ (28,457)
Adjustments to reconcile net income (loss) to net cash used in operating activities:
Stock-based compensation	1,802	1,643
Depreciation and amortization	901	1,144
Loss on disposal of property and equipment	47	4
Non-cash interest expense and other	3,239	6,642
Gain on extinguishment of liability related to sale of royalties	(37,182)
Changes in operating assets and liabilities:
Royalty receivable	1,164	(1,295)
Prepaid expenses and other current assets	355	436
Operating lease right-of-use asset	653	1,138
Accounts payable, accrued compensation and other liabilities	(394)	(1,915)
Long-term operating lease liability	366	(1,019)
Net cash used in operating activities	(21,022)	(21,679)
Investing Activities
Purchases of property and equipment	(29)	(713)
Net cash used in investing activities	(29)	(713)
Financing Activities
Payments of long-term debt, including fees	(12,267)	(10,550)
Repayments under liability related to sale of royalties	(6,779)	(8,627)
Proceeds from sale of royalties		35,000
Transaction costs from sale of royalties		(1,100)
Proceeds from exercise of stock options		220
Value of equity awards withheld for tax liability	(4)
Proceeds from exercises of warrants		985
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	6,934	10,233
Net cash (used in) provided by financing activities	(2,616)	26,161
(Decrease) increase in cash, cash equivalents, and restricted cash	(23,667)	3,769
Cash, cash equivalents, and restricted cash at beginning of period	46,303	42,534
Cash, cash equivalents, and restricted cash at end of period	22,636	$ 46,303
Supplemental Cash Flow Information [Abstract]
Change in right-of-use asset and lease liability from lease remeasurement	$ 4,372

CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY - USD ($) $ in Thousands	Total	Common Stock	Common Stock Purchase Agreement Lincoln Park	Additional Paid-In Capital	Accumulated Deficit
Balance at Dec. 31, 2020	$ 16,594	$ 46		$ 202,154	$ (185,606)
Balance (in shares) at Dec. 31, 2020		4,410,909
Proceeds from exercise of stock options	218			218
Proceeds from exercise of stock options (in shares)		26,082
Proceeds from exercise of warrants	984			984
Proceeds from exercise of warrants (in shares)		54,105
Commitment shares issued/ proceeds from issuance of common stock (in shares)	10,234	$ 1		10,233
Commitment shares issued/ proceeds from issuance of common stock (in shares)		407,047	407,047
Stock-based compensation	1,643			1,643
Net income (loss) for the period	(28,457)				(28,457)
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 and exercised stock options	(5)			(5)
Common stock issued upon vesting of restricted stock units and exercised stock options (in shares)		16,810
Commitment shares issued/ proceeds from issuance of common stock (in shares)	6,934	$ 1		6,933
Commitment shares issued/ proceeds from issuance of common stock (in shares)		1,452,065	99,276
Stock-based compensation	1,802			1,802
Net income (loss) for the period	8,027				8,027
Balance at Dec. 31, 2022	$ 17,974	$ 48		$ 223,962	$ (206,036)
Balance (in shares) at Dec. 31, 2022		6,466,294

Nature of Business and Significant Accounting Policies

12 Months Ended

Dec. 31, 2022

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 immunotherapy 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 lead 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 consolidated 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 year ended December 31, 2022, we had net income of $8.0 million. We had an accumulated deficit of $206.0 million as of December 31, 2022. For the year ended December 31, 2022, net cash used in our operating activities was $21.0 million. We have suffered recurring losses from operations and negative cash flows from operating activities. 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 HCR, funds available under the Purchase Agreement with Lincoln Park and the Equity Distribution Agreement with Piper Sandler, cash to be generated from future deferred payments and milestones related to IXINITY sales and regulatory approvals achieved by Medexus, and contingent considerations to be received from Kamada Ltd. (previously Saol), will be sufficient to meet our projected operating requirements and debt service for at least twelve months from the date of issuance of these financial statements. 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) potential decreases in our expected milestone and deferred payments 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 consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (GAAP). These consolidated financial statements include all adjustments, which include normal recurring adjustments, necessary for the fair presentation of the Company’s financial position.

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 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. All intercompany balances and transactions have been eliminated.

Significant Accounting Policies

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 consolidated financial statements and accompanying notes. Estimates are used for, but not limited to, forecasted royalties, effective interest rates, 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 climate and additional or unforeseen effects from the ongoing COVID-19 pandemic, these estimates are becoming more challenging, and actual results could differ materially from those estimates.

Cash Equivalents

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 with commercial banks and financial institutions.

Restricted Cash

As of December 31, 2022 and 2021, we had current restricted cash of $0 and $1.3 million related to securing letters of credit. We classify our restricted cash as either current or non-current based on the term of the underlying letters of credit.

Concentrations of Credit Risk

Financial instruments that potentially subject Aptevo to concentrations of credit risk consist primarily of cash and cash equivalents, certain investments and royalty and milestone receivable. Aptevo places its cash and cash equivalents with high quality financial institutions and may maintain cash balances in excess of insured limits. Management believes that the financial risks associated with its cash and cash equivalents are minimal.

The royalty and milestone receivable relates to our Amendment to Royalty Purchase Agreement with HCR. We do not believe that Aptevo is exposed to significant credit risk related to royalty and milestone receivable due to the credit quality and history of collections from HCR.

Property and Equipment

Property and equipment are stated at cost. Depreciation is computed using the straight-line method over the following estimated useful lives:


Furniture and equipment	7-10 years
Software and hardware	3-5 years or product life
Leasehold improvements	Lesser of the asset life or the remaining lease term

Upon retirement or sale, the cost of assets disposed of and the related accumulated depreciation are removed from the accounts and any resulting gain or loss is credited or charged to operations. Repairs and maintenance costs are expensed as incurred.

Leases

We determine if an arrangement is a lease at inception date. Leases are to be classified as finance or operating leases at the lease commencement date, which affects the classification of expense recognition in the consolidated statement of operations. Right-of-use assets represent the right to use an underlying asset for the lease term and lease liabilities represent the obligation to make lease payments, as agreed to in the lease. Operating lease liabilities and the corresponding right-of-use assets are recognized based on the present value of the future minimum lease payments over the lease term at commencement date. An operating right-of-use asset is measured as the amount of the initial measurement of the lease liability, adjusted for prepaid or accrued lease payments, the remaining balance of any lease incentive received, unamortized initial direct costs, and any impairment of the right-of-use asset. The initial measurement of the lease liabilities and right-to-use assets of finance leases is the same as for operating leases. We include options to extend the lease and certain termination options in our lease liability and right-of-use asset when it is reasonably certain that we will exercise those options.

As our existing leases do not contain an implicit interest rate, we estimate our IBR based on information available at commencement date in determining the present value of future payments. Due to the significant judgment involved and the complex analysis needed to determine this discount rate, we engaged a third-party valuation specialist to advise us in our determination of our IBR for the initial adoption of the standard and subsequent amendment of our office lease.

Lease expense for operating leases is recognized on a straight-line basis over the lease term as part of our selling, general and administrative expenses and our research and development expenses on our consolidated statements of operations. Lease expense for financing leases consists of amortization of the right-of-use asset and interest on the lease liability as part of our research and development expenses on our consolidated statements of operations.

Fair Value of Financial Instruments

We measure and record cash equivalents at fair value in the accompanying financial statements. Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability, an exit price, in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs.

The carrying amounts of our short-term financial instruments, which include cash and cash equivalents, royalty and milestone receivable and accounts payable, approximate their fair value due to their short maturities.

Debt Issuance Costs

Aptevo defers costs related to debt issuance and amortizes these costs to interest expense over the term of the debt, using the effective interest method. Debt issuance costs are presented in the consolidated balance sheet as a reduction of the carrying amount of the debt liability.

Debt Modification

On March 30, 2021, we amended our Credit Agreement with MidCap Financial (First Amendment to Credit Agreement) and used $10 million of the proceeds received from the Royalty Purchase Agreement to pay down the outstanding principal under the Credit Agreement from $25 million to $15 million. The amended Credit Agreement was accounted for under ASC 470-50, Debt Modifications and Extinguishments as a debt modification, rather than an extinguishment, based on a comparison of the present value of the cash flows under the terms of the debt immediately before and after the amendment, which resulted in a change of less than 10%. Unamortized issuance costs as of the date of modification will be amortized to interest expense using the effective interest method over the repayment term.

On June 7, 2022, we further amended the Credit Agreement with MidCap Financial (Limited Consent and Second Amendment to Credit Agreement) to obtain MidCap Financial’s limited consent to amend the Royalty Purchase Agreement with HCR. The Limited Consent and Second Amendment to Credit Agreement did not change future cash flows or other terms of the Credit Agreement.

Additionally, on August 30, 2022, we amended our Credit Agreement with MidCap Financial (Third Amendment to Credit Agreement) to replace the LIBOR benchmark with SOFR, which is regulated by the Federal Reserve Bank of New York. We amended our Credit Agreement due to FCA's planned phase-out of one-month US Dollar LIBOR settings in 2023. Our Credit Agreement continues to bear base interest at a rate of 6.25% per annum plus SOFR, subject to a 1.50% SOFR floor and a 2.50% SOFR cap.

Liability Related to Sale of Royalties and Other Income (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 net sales of RUXIENCE. Under the terms of the Royalty Purchase Agreement, we received $35 million at closing and we are eligible to receive additional payments in the aggregate of up to an additional $32.5 million based on the achievement of sales milestones in 2021, 2022 and 2023.

On the date we entered into the transaction, 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 is 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, which was the total balance of liability related to the sale of royalties on the closing date. The Amendment to Royalty Purchase Agreement allowed us to regain full compliance with Nasdaq Listing Rule 5550(b)(1) in a way that was non-dilutive for our shareholders. No royalty revenue on net sales of RUXIENCE that are paid by Pfizer to HCR has been recognized subsequent to when we entered into the Amendment to Royalty Purchase Agreement. The royalty revenue included in the consolidated statements of operations reflects revenue recorded only prior to the second quarter of 2022 due to our Amendment to Royalty Purchase Agreement. Future Milestone Amounts 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 2022 milestone payment of $2.5 million on February 28, 2023. The proceed from 2022 milestone payment was recorded as other income in the consolidated statement of operations for the year ended December 31, 2022. The Company is eligible to receive additional milestone payment of $10 million based on achievement of sales milestones in 2023.

Royalty Revenue

We recognized revenue in accordance with Accounting Standards Codification Topic 606, Revenue from Contracts with Customers (ASC 606). 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 exclusively related to royalties on Pfizer’s net sales of RUXIENCE. Royalty revenue for the period covered by this report reflects revenue recorded only prior to the second 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. Revenue recorded in the period covered by this report represents actual royalty revenue given the timing of RUXIENCE sales reports received from Pfizer. There was no significant financing component to the contract.

Research and Development Expenses

Research and development expenses are expensed as incurred. Research and development costs primarily consist of internal labor costs, fees paid to outside service providers and the costs of materials used in clinical trials and research and development. Other research and development expenses include facility, maintenance, and related support expenses.

A substantial portion of Aptevo’s preclinical studies and all of its clinical studies have been performed by third-party CROs. The Company reviews the activities performed by the CROs each period. For preclinical studies, the significant factors used in estimating accruals include the percentage of work completed to date and contract milestones achieved. For clinical study expenses, the significant factors used in estimating accruals include the number of patients enrolled and services provided but not yet invoiced. The Company’s estimates are highly dependent upon the timeliness and accuracy of the data provided by its CROs regarding the status of each program and total program spending and adjustments are made when deemed necessary.

General and Administrative Expenses

General and administrative expenses consist primarily of personnel-related costs and professional fees in support of our executive, business development, finance, accounting, information technology, legal and human resource functions. Other costs include facility costs not otherwise included in research and development expense.

Stock-Based Compensation

We measure and recognize compensation expense for restricted stock units (RSUs), and stock options granted to our employees and directors based on the fair value of the awards as of the date of grant. The fair value of stock options is estimated at the date of grant using the Black-Scholes option pricing model that requires management to apply judgment and make estimates, including:

•

the expected term of the stock option award, which we calculate using the simplified method, as we have insufficient historical information regarding our stock options to provide a basis for an estimate;

•

the expected volatility of our underlying common stock, which we estimate based on the historical volatility of the historical and implied future volatility of our common stock;

•

the risk-free interest rate, which we based on the yield curve of U.S. Treasury securities with periods commensurate with the expected term of the options being valued;

•

the expected dividend yield, which we estimate to be zero based on the fact that we have never paid cash dividends and have no present intention to pay cash dividends; and

•

the fair value of our common stock on the date of grant.

Stock-based compensation expense for RSUs is recognized on a straight-line basis over the vesting period of the respective award. Stock-based compensation expense for our stock options, both converted and Aptevo granted, is recognized on a straight-line basis over the vesting period of the respective award.

We routinely evaluate the appropriateness of the forfeiture rate based on actual forfeiture experience, analysis of employee turnover, and expectations of future option exercise behavior.

Income Taxes

Income taxes are accounted for using the liability method. Deferred tax assets and liabilities are recognized for future tax consequences attributable to differences between financial statement carrying amounts of existing assets and liabilities and their respective tax bases and net operating loss and tax credit carry forwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the year in which those temporary differences are expected to be recovered or settled.

Aptevo’s ability to realize deferred tax assets depends upon future taxable income, as well as the limitations discussed below. For financial reporting purposes, a deferred tax asset must be reduced by a valuation allowance if it is more likely than not that some portion or all of the deferred tax assets will not be realized prior to expiration. Aptevo considers historical and future taxable income, future reversals of existing taxable temporary differences, taxable income in prior carryback years, and ongoing tax planning strategies in assessing the need for valuation allowances. In general, if Aptevo determines that it is more likely than not to realize more than the recorded amounts of net deferred tax assets in the future, Aptevo will reverse all or a portion of the valuation allowance established against its deferred tax assets, resulting in a decrease to the provision for income taxes in the period in which the determination is made. Likewise, if Aptevo determines that it is not more likely than not to realize all or part of the net deferred tax asset in the future, Aptevo will establish a valuation allowance against deferred tax assets, with an offsetting increase to the provision for income taxes, in the period in which the determination is made.

Because tax laws are complex and subject to different interpretations, significant judgment is required. As a result, Aptevo makes certain estimates and assumptions, in (1) calculating Aptevo’s income tax expense, deferred tax assets and deferred tax liabilities, (2) determining any valuation allowance recorded against deferred tax assets and (3) evaluating the amount of unrecognized tax benefits, as well as the interest and penalties related to such uncertain tax positions. Aptevo’s estimates and assumptions may differ significantly from tax benefits ultimately realized.

Segment Reporting

Operating segments are identified as components of an entity about which separate discrete financial information is available for evaluation by the chief operating decision maker (CODM), or decision-making group, in making decisions on how to allocate resources and assess performance. The Company's CODM is the Chief Executive Officer, who views the Company's operations as one operating segment, which is discovery and development of novel oncology therapeutics.

Recently Adopted Accounting Pronouncement

In March 2020, the Financial Accounting Standards Board (FASB) issued Accounting Standard Update (ASU) 2020-04, Reference Rate Reform (ASC 848) to provide optional expedients and exceptions for applying GAAP to loan and lease agreements, derivative contracts, and other transactions affected by the anticipated transition away from LIBOR toward new interest rate benchmarks. The FCA, which regulates LIBOR, phased out one-week and two-month US Dollar LIBOR settings on December 31, 2021. All other US Dollar LIBOR settings, including the overnight, one-month, three-month, six-month and twelve-month, will be phased out on June 30, 2023.

We evaluated ASC 848, Reference Rate Reform, as part of our August 30, 2022 amendment to Credit Agreement with MidCap Financial (see Note 7). The adoption of ASC 848 did not have a material impact on our consolidated financial statements.

Discontinued Operations

12 Months Ended

Dec. 31, 2022

Discontinued Operations And Disposal Groups [Abstract]

Discontinued Operations

Note 2. Discontinued Operations

The accompanying financial statements include discontinued operations from two separate transactions: the sale of our hyperimmune business in 2017, from which we received a payment in March 2021 related to the collection of a certain accounts receivable, and the sale of our Aptevo BioTherapeutics LLC business in February 2020.

On February 28, 2020, we entered into an LLC Purchase Agreement with Medexus, pursuant to which we sold all of the issued and outstanding limited liability company interests of Aptevo BioTherapeutics LLC, a wholly owned subsidiary of Aptevo. As a result of the transaction, Medexus obtained all rights, title and interest to the IXINITY product and the related Hemophilia B business and intellectual property.

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


	For the Year Ended December 31,
	2022		2021
Deferred payments from Medexus		1,013		491
Gain on contingent consideration from Saol		—		460
Income from discontinued operations	$	1,013	$	951

The LLC Purchase Agreement with Medexus entitles us to future deferred payments and royalties. For the year ended December 31, 2022, we collected an approximately $1.0 million deferred payment from Medexus related to IXINITY sales. For the year ended December 31, 2021, we collected $0.5 million related to the sale of the hyperimmune business to Saol as a result of the collection of certain accounts receivable and deferred payments of $0.5 million from Medexus related to IXINITY sales. Pursuant to our LLC Purchase Agreement with Medexus, the rate for deferred payments increased from 2% to 5% of net sales as of June 30, 2022.

Collaboration Agreements

12 Months Ended

Dec. 31, 2022

Organization Consolidation And Presentation Of Financial Statements [Abstract]

Collaboration Agreements

Note 3. 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 lead 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 years ended December 31, 2022 and 2021, we recorded approximately $1.7 million and $0.1 million in our research and development expense related to the collaboration arrangement, respectively.

Fair Value Measurements

12 Months Ended

Dec. 31, 2022

Fair Value Disclosures [Abstract]

Fair Value Measurements

Note 4. 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, 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 December 31, 2022 and 2021, we had $21.6 million and $41.2. million in money market funds, respectively. The carrying amounts of our money market funds approximate their fair value. At December 31, 2022 and 2021, we did not have any Level 2 or Level 3 assets or liabilities.

- 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

Cash, Cash Equivalents, and Restricted Cash

12 Months Ended

Dec. 31, 2022

Cash And Cash Equivalents [Abstract]

Cash, Cash Equivalents, and Restricted Cash

Note 5. Cash, Cash Equivalents, and Restricted Cash

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

The following table shows our cash, cash equivalents and current restricted cash as of December 31, 2022 and 2021:


	For the Year Ended December 31,
(in thousands)	2022		2021
Cash	$	1,066	$	3,841
Cash equivalents		21,569		41,203
Restricted cash		—		1,259
Total cash, cash equivalents, and restricted cash	$	22,635	$	46,303

Property and Equipment, Net

12 Months Ended

Dec. 31, 2022

Property Plant And Equipment [Abstract]

Property and Equipment, Net

Note 6. Property and equipment, net

Property and equipment consist of the following:


	For the Year Ended December 31,
(in thousands)	2022			2021
Leasehold improvements	$	2,228		$	2,228
Furniture and equipment		12,260			12,430
Property and equipment, gross		14,488			14,658
Less: Accumulated depreciation		(13,026	)		(12,279	)
Total property and equipment, net	$	1,462		$	2,379

Depreciation expense for the years ended December 31, 2022 and 2021 was $0.9 million and $1.1 million, respectively.

Debt

12 Months Ended

Dec. 31, 2022

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 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. The term loan facility has a 48 month term, is interest-only for the first 18 months, with straight-line amortization for the remaining 30 months and bears interest at a rate of one month LIBOR plus 6.25% per annum, subject to a 1.50% LIBOR floor and a 2.50% LIBOR cap. Certain assets of the Company are pledged as collateral under the terms of the Credit Agreement. The FCA, which regulates LIBOR, phased out one-week and two-month US Dollar LIBOR settings on December 31, 2021. All other US Dollar LIBOR settings, including the overnight, one-month, three-month, six-month and twelve-month, will be phased out on June 30, 2023. Our 2020 Credit Agreement with MidCap Financial originally referenced one-month LIBOR and also provided that we may amend the Credit Agreement to reflect an alternative rate of interest upon the phase out of LIBOR.

On November 6, 2020, Kevin Tang and his related entities filed a statement on Schedule 13D to report the purchase of 1,760,000 shares of the Company’s common stock, which at the time represented approximately 54% of the Company’s issued and outstanding shares of the Company’s common stock. This acquisition of voting stock triggered a change in control, resulting in an Event of Default under Section 10.1(a)(ii) of the Credit Agreement. On November 10, 2020, the Company obtained a waiver from MidCap Financial pursuant to which, among other things, MidCap Financial waived such Event of Default and MidCap Financial and the Company agreed that an immediate event of default under the Credit Agreement will be deemed to have occurred in the event that (a) a majority of the seats on the Company’s board of directors are occupied by persons who were neither (i) nominated by the Company’s board of directors nor (ii) appointed by the directors so nominated, and (b) Tang has appointed the majority of the Company’s board of directors. No other events of default have occurred with respect to the Credit Agreement.

On March 30, 2021, we amended our Credit Agreement with MidCap Financial and used $10.0 million of the proceeds received from the Royalty Purchase Agreement to pay down the outstanding principal under the Credit Agreement from $25.0 million to $15.0 million. A fee of $0.6 million was paid by the Company to MidCap Financial in connection with the amendment in lieu of the formula-based fee previously required. $10.0 million of the remaining $15.0 million principal balance was paid on March 29, 2022 and we incurred additional $0.6 million prepayment fees. Beginning March 1, 2022, monthly repayment of the remaining $5.0 million of principal commenced and will continue for the final 30 months of the loan term. The term loan facility includes additional payment provisions if milestones related to IXINITY under the LLC Purchase Agreement with Medexus or royalties related to RUXIENCE under the Royalty Purchase Agreement with HCR are sold during the term of the loan. If the Company sells the IXINITY deferred payment stream and milestones prior to full repayment of this $5.0 million principal amount, under the agreement with MidCap Financial, we will be required to use the proceeds from the sale to pay down the outstanding loan principal balance. MidCap Financial also released its security interest in the RUXIENCE royalty payments.

The amended Credit Agreement was accounted for as a debt modification, rather than an extinguishment, based on a comparison of the present value of the cash flows under the terms of the debt immediately before and after the

amendment, which resulted in a change of less than 10%. Unamortized issuance costs as of the date of modification will be amortized to interest expense using the effective interest method over the repayment term.

On June 7, 2022, we further amended the Credit Agreement with MidCap Financial to obtain MidCap Financial’s limited consent to amend our Royalty Purchase Agreement with HCR. The Limited Consent and Second Amendment to Credit Agreement did not change future cash flows or other terms of the Credit Agreement.

Additionally, on August 30, 2022, we amended our Credit Agreement with MidCap Financial to replace the LIBOR benchmark with SOFR, which is regulated by the Federal Reserve Bank of New York. We amended our Credit Agreement due to FCA’s planned phase-out of one-month US Dollar LIBOR settings in 2023. Our Credit Agreement continues to bear base interest at a rate of 6.25% per annum plus SOFR, subject to a 1.50% SOFR floor and a 2.50% SOFR cap.

As of December 31, 2022, we classified $2.0 million of the $3.5 million principal of the amended Credit Agreement to current portion of long-term debt on the consolidated balance sheet. For the years ended December 31, 2022 and 2021, the Company paid $0.6 million and $1.4 million in interest expense pursuant to our Credit Agreement.

This facility is subject to a subjective acceleration clause that could be invoked by MidCap Financial upon the occurrence of any event MidCap Financial deems to have a material adverse effect on our ability to repay the lender.

Future principal, interest, and other related fee payments in connection with the Credit Agreement as of December 31, 2022 are as follows:


(in thousands)
2023	$	2,279
2024		1,727
Total	$	4,006

- 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
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-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1B
-Subparagraph (h)
-URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495323-112611

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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Reference 4: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
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Reference 5: http://www.xbrl.org/2003/role/disclosureRef
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-Paragraph 1I
-Subparagraph (d)
-URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495371-112611

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(c))
-URI https://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1B
-Subparagraph (g)
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Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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-Publisher FASB
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Reference 12: http://www.xbrl.org/2003/role/disclosureRef
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Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
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-Section 50
-Paragraph 1B
-Subparagraph (i)
-URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495323-112611

+ Details

Liability Related to Sale of Future Royalties

12 Months Ended

Dec. 31, 2022

Sale Of Future Royalties Liability Disclosure [Abstract]

Note 8. Liability Related to Sale of Royalties

In March 2021, we entered into and closed the 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 agreement, we received $35.0 million at closing and we are eligible to receive additional payments in the aggregate of up to an additional $32.5 million based on the achievement of sales milestones in 2021, 2022 and 2023 (up to $10 million and $12.5 million in 2021 and 2022, respectively and $10 million in 2023).

Due to the nature of the transaction, which included a cap on HCR’s rate of return, constituting continuing involvement under the Collaboration and License Agreement originally between Trubion and Wyeth, we recorded a liability related to the proceeds received from HCR of $35.0 million, net of transaction costs of $1.1 million. Further, we received proceeds related to the 2021 milestone of $10.0 million, net of transaction costs of $0.5 million, and recorded additional liability related to sale of royalties. We recognized royalty revenue on net sales of RUXIENCE and recorded the royalty payments to HCR as a reduction of the liability when paid. We received the 2021 milestone payments in the collective amount of $10.0 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 April 1, 2022, the Company received a letter from Nasdaq indicating that it was not in compliance with Nasdaq Listing Rule 5550(b)(1). 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 allowed us to regain full compliance with Nasdaq Listing Rule 5550(b)(1) in a way that was non-dilutive for our shareholders. Pursuant to the Amendment to Royalty Purchase Agreement, we agreed to forego our right to receive 50% of incremental RUXIENCE royalty revenue after HCR received aggregate royalty payments totaling 190% of the Investment Amount plus Milestone Amounts to the extent paid by HCR. 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.

The royalty revenue included in the consolidated statements of operations reflects revenue recorded only prior to the second quarter of 2022 due to our Amendment to Royalty Purchase Agreement. 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 2022 milestone payment of $2.5 million on February 28, 2023. The proceeds from 2022 milestone payment was recorded as other income in the consolidated statement of operations for the year ended December 31, 2022. We are eligible to receive additional milestone payment of $10 million based on achievement of sales milestones in 2023.

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


	For the year ended December 31,
	2022			2021
Liability related to sale of royalties, beginning balance	$	31,045		$	—
Proceeds from sale of royalties, net of transaction costs		—			33,900
Proceeds from milestone payments, net of transaction costs		9,500			—
Non-cash interest expense		3,416			5,772
RUXIENCE royalties paid by Pfizer to HCR		(6,779	)		(8,627	)
Gain from extinguishment of liability related to sale of royalties		(37,182	)		—
Liability related to sale of royalties, ending balance		—			31,045
Current portion of liability related to sale of royalties		—			(15,465	)
Liability related to sale of royalties, non-current	$	—		$	15,580

Leases and Contingencies

12 Months Ended

Dec. 31, 2022

Leases [Abstract]

Leases and Contingencies

Note 9. Leases and Contingencies

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 to record lease liability and ROU asset through April 30, 2023 given we were not reasonable certain to not exercise the termination option.

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 December 31, 2022, 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 years ended December 31, 2022 and 2021, we recorded $0.7 million and $0.8 million, respectively, related to variable expense due to true ups of operating costs or real estate taxes.

Equipment Leases - Operating and Financing

As of December 31, 2022, we did not have any operating or financing leases for equipment.

Components of lease expense:


	For the year ended December 31,		For the year ended December 31,
(in thousands)	2022		2021
Operating lease cost	$	1,277	$	1,556
Total lease cost	$	1,277	$	1,556

Right-of-use assets acquired under operating leases:


	As of December 31,		As of December 31,
(in thousands)	2022		2021
Operating leases, excluding Seattle office lease	$	—	$	7
Seattle office lease, including amendment		5,303		1,577
Total right-of-use assets	$	5,303	$	1,584

Lease payments:


	For the year ended December 31,		For the year ended December 31,
(in thousands)	2022		2021
For operating leases	$	895	$	1,387

Future minimum payments as of December 31, 2022 are as follows:


(in thousands)
2023		1,147
2024		1,376
2025		1,376
2026 and beyond		5,963
Total future minimum lease payments		9,862
Less: imputed interest		(3,402	)
Total	$	6,460

As of December 31, 2022, the long-term and current portion of the lease liabilities were $6.1 million and $0.4 million, respectively. As of December 31, 2021, the long-term and current portion of the lease liabilities were $1.3 million and $1.0 million, respectively.

As of December 31, 2022, the weighted average remaining lease term and weighted discount rate for operating leases was 7.3 years and 12.03%. As of December 31, 2021, the weighted average remaining lease term and weighted discount rate for operating leases was 1.3 years and 14.46%.

Net Income (Loss) per Share

12 Months Ended

Dec. 31, 2022

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 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 income (loss) per share (in thousands, except share and per share amounts):


	For the Year Ended December 31,
	2022		2021
Net income (loss) from continuing operations	$	7,014	$	(29,408	)
Income from discontinued operations		1,013		951
Net income (loss)	$	8,027	$	(28,457	)

Basic and diluted net income (loss) per share from continuing operations:
Basic	$	1.37	$	(6.27	)
Diluted	$	1.37	$	(6.27	)
Basic and diluted net income per share from discontinued operations:
Basic	$	0.20	$	0.20
Diluted	$	0.20	$	0.20

Shares used in calculation
Basic		5,100,310		4,687,952
Diluted		5,102,914		4,687,952

The following table represents all potentially dilutive shares:


	As of December 31,
(in thousands, except for per share amounts)	2022		2021
Warrants		351		351
Outstanding options to purchase common stock		364		334
Unvested RSUs		224		57

Equity

12 Months Ended

Dec. 31, 2022

Equity [Abstract]

Equity

Note 11. Equity

Common Stock

The Company issued warrants to purchase shares of our common stock outstanding related to our March 11, 2019 public offering. For the year ended December 31, 2022, the Company did not have any of its warrants exercised. For the year ended December 31, 2021, certain of the holders of the Company’s warrants exercised warrants with a strike price of $18.20 per share, resulting in the issuance of 54,105 shares of the Company’s common stock and aggregate proceeds to the Company of approximately $1.0 million. As of December 31, 2022 and 2021, there were warrants to purchase 350,589 shares of common stock outstanding.

For the year ended December 31, 2022, we issued 16,809 shares of our common stock due to the vesting of RSUs. For the year ended December 31, 2021, we did not issue any common stock due to the vesting of RSUs.

For the year ended December 31, 2022, an immaterial number of shares of stock options were exercised. For the year ended December 31, 2021, we received proceeds of $0.2 million upon the exercise of stock options which resulted in the issuance of 26,082 shares of common stock.

Equity Distribution Agreement

On December 14, 2020, we entered into an Equity Distribution Agreement with Piper Sandler. 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 sale of such shares of common stock by Piper Sandler will be effected pursuant to a Registration Statement on Form S-3 which we filed on December 14, 2020. For the year ended December 31, 2022, we issued 1,452,065 shares of our common stock at an average share price of $4.92 under the Equity Distribution Agreement. We received $7.0 million in proceeds from issuance of these shares. We did not issue any shares under the Equity Distribution Agreement for the year ended December 31, 2021.

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 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 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 in the year ended December 31, 2022, we did not issue any shares of common stock for cash consideration to Lincoln Park under the 2022 Purchase Agreement. For the year ended December 31, 2021, the Company issued 407,047 shares of common stock to Lincoln Park under the 2018 Purchase Agreement and received $10.2 million in proceeds from issuance of these shares.

Rights Plan

On November 8, 2020, our Board of Directors (Board) approved and adopted a Rights Agreement 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. 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 (the 2016 SIP). A total of 0.2 million shares of our common stock have been authorized for issuance under the 2016 SIP in the form of equity stock options.

On May 31, 2017, at the 2017 Annual Meeting of Stockholders (Annual Meeting), the Company’s stockholders approved the amendment and restatement of the Company’s 2016 SIP (Restated 2016 Plan) to, among other things, increase the number of authorized shares issuable by 0.1 million shares of our common stock. The Restated 2016 Plan was previously approved, subject to stockholder approval, by the Board of Directors of the Company.

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 (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 our 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 0.5 million shares of common stock. As of December 31, 2022, there are less than 0.4 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

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


	For the Year Ended December 31,
(in thousands)	2022		2021
Research and development	$	196	$	510
General and administrative		1,606		1,133
Total stock-based compensation expense	$	1,802	$	1,643

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 cancelled.

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 Year Ended December 31,
	2022	2021
Expected dividend yield	0.00%	0.00%
Expected volatility	106.24%	99.15%
Risk-free interest rate	1.71%	0.61%
Expected average life of options	5 years	5 years

Management has applied an estimated forfeiture rate of 30% and 23% for the year ended December 31, 2022 and 2021, respectively. Expected volatility increased, as our stock price fluctuated from a low of $2.00 to a high of $8.42 throughout the year ended December 31, 2022, compared to a low of $6.48 to a high of $40.59 for the year ended December 31, 2021.

The following is a summary of option activity for the year ended December 31, 2022:


	Number of Shares			Weighted- Average Exercise Price		Weighted- Average Remaining Term		Aggregate Intrinsic Value (in thousands)
Outstanding at December 31, 2021		334,412		$	19.17		8.70	$	43,210
Granted		69,588			5.54		—		—
Exercised		(85	)		6.97		—		21
Forfeited		(39,649	)		25.61		—		—
Outstanding at December 31, 2022		364,266			15.77		7.39		—
Exercisable at December 31, 2022		187,838		$	13.73		6.33		—
Vested and expected to vest at December 31, 2022		321,078		$	15.77		7.21	$	—

As of December 31, 2022, we had $1.9 million of unrecognized compensation expense related to options expected to vest over a weighted average period of 1.3 years. The weighted-average grant date fair value per share of options granted during the years ended December 31, 2022 and 2021 was $4.36 and $23.02, respectively. The aggregate intrinsic value of options exercised for the years ended December 31, 2022 and 2021 was $0 and $0.4 million, respectively. The total fair value of stock options vested for the years ended December 31, 2022 and 2021 was $1.3 million and $1.6 million, respectively.

The aggregate intrinsic value in the table above represents the total pretax intrinsic value (the difference between the closing stock price of Aptevo’s common stock on the last trading day of December 2022 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 restricted stock activity for the year ended December 31, 2022:


	Number of Units			Weighted Average Fair Value per Unit
Outstanding at December 31, 2021		56,810		$	30.66
Granted		199,604			5.05
Vested		(17,903	)		30.43
Forfeited		(14,736	)		21.08
Outstanding at December 31, 2022		223,775		$	8.47
Expected to Vest		223,775		$	8.47

As of December 31, 2022, we had $1.5 million of unrecognized stock-based compensation expense related to RSUs expected to vest over a weighted average period of 1.6 years. As of December 31, 2021, we had $1.4 million of unrecognized stock-based compensation expense related to RSUs expected to vest over a weighted average period of 2.2 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 consolidated balance sheets. For the year ended December 31, 2022, the Company did not have any of its warrants exercised. For the year ended December 31, 2021, certain of the holders of the Company’s warrants exercised warrants with a strike price of $18.20 per share, resulting in the issuance of 54,105 shares of the Company’s common stock and aggregate proceeds to the Company of approximately $1.0 million. As of December 31, 2022, there were warrants to purchase 350,589 shares of common stock outstanding.

401(K) Savings Plan

12 Months Ended

Dec. 31, 2022

Compensation And Retirement Disclosure [Abstract]

401(K) Savings Plan

Note 12. 401(k) Savings Plan

Aptevo has established a defined contribution savings plan under Section 401(k) of the Internal Revenue Code, as amended. The 401(k) Plan covers all employees. Under the 401(k) Plan, employees may make elective salary deferrals. Aptevo currently provides for matching of qualified deferrals up to 50% of 401(k) employee deferral contributions, based on a maximum employee deferral rate of 6% of compensation. During the year ended December 31, 2022 and 2021, Aptevo’s related share of matching contributions was approximately $0.2 million.

- Definition

The entire disclosure for retirement benefits.

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+ Details

Income Taxes

12 Months Ended

Dec. 31, 2022

Income Tax Disclosure [Abstract]

Income Taxes

Note 13. Income Taxes

We did not have an income tax benefit or income tax expense from continuing operations in the years ended December 31, 2022 and 2021.

The components of income (loss) before income taxes were as follows (in thousands):


	Year ended December 31,
(in thousands)	2022		2021
US	$	7,014	$	(29,408	)
Income (loss) from continuing operations before benefit from income taxes	$	7,014	$	(29,408	)

The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities are presented below:


	For the Year Ended December 31,
(in thousands)	2022			2021
Federal losses carryforward	$	32,793		$	33,520
Capitalized research expenditures		3,361			—
Intangible assets		195			235
Stock-based compensation		912			986
State losses carryforward		3,799			3,743
Other deferred tax assets		496			2,023
Other tax credits		4,852			3,253
Lease Liabilities		1,371			496
Fixed Assets		442			456
Gain related to sale of future royalties		2,016			5,866
Deferred tax assets, gross		50,237			50,578
Valuation allowance		(49,113	)		(50,245	)
Deferred tax assets, net of valuation		1,124			333
ROU Assets		(1,124	)		(333	)
Deferred tax liability		(1,124	)		(333	)
Net deferred tax assets	$	—		$	—

The Company evaluated the positive and negative evidence bearing upon the realizability of its deferred tax assets. Based on the Company’s history of operating losses, including a three-year cumulative loss position as of December 31, 2022, the Company has concluded that it is more likely than not that the benefit of its deferred tax assets will not be realized. Accordingly, the Company provided a full valuation allowance for its net deferred tax assets as of December 31, 2022 and 2021. The valuation allowance decreased by $1.1 million during the year ended December 31, 2022. The decrease in the valuation allowance during the year ended December 31, 2022 was due primarily to a decrease in deferred tax assets resulting from the current year write-off of DTA related to the sale of the Company’s RUXIENCE royalty rights to HCR and decrease in Section 163(j) limitation, which was utilized at return time, the impact of which was partially offset by orphan drug credit generated during the period, Section 174 capitalized research expenditures, and the generation of federal and state NOLs during the period.

As of December 31, 2022 and 2021, we have recorded gross federal net operating losses (NOL) carryforwards of approximately $156.2 and $159.6 million, respectively, gross state NOL carryforwards of approximately $71.1 and $70.3 million, respectively, and tax credit carryforwards of $4.9 million and $3.3 million, respectively. Approximately $15.1 million of federal losses and credits would begin to expire in 2037, while $141.1 million of federal losses may be carried forward indefinitely. The state net operating losses will begin to expire in varying periods.

The Company completed an IRC Section 382/383 study on its federal and state tax attributes based on an ownership change that occurred during 2021. Based on the study, there are not any permanent limitations on our ability to use federal and state net operating loss carryforwards and tax credits. We may experience ownership changes in the future as a result of subsequent shifts in our stock ownership, some of which may be outside of our control. If an ownership change occurs in the future, our ability to use our net operating loss carryforwards and credits could be limited.

The Company files income tax returns in the U.S. and several state jurisdictions and are open to review by taxing authorities for the 2016 tax filings and thereafter.

We are subject to the accounting guidance for uncertain income tax positions. We believe that our income tax positions and deductions will be sustained on audit and do not anticipate any adjustments that will result in a material adverse effect on our financial condition, results of operations, or cash flow. Our policy for recording interest and penalties associated with audits and uncertain tax positions is to record such items as a component of income tax expense, and amounts recognized to date are insignificant. No uncertain income tax positions are recorded, and we do not expect our uncertain tax position to change during the next twelve months.

The reconciliation of the federal statutory income tax rate to the Company’s effective income tax from continuing operations is as follows:


	Year ended December 31,
	2022			2021
Federal tax at statutory rates		21.0	%		21.0	%
State taxes, net of federal benefit		-1.8	%		-1.0	%
Change in valuation allowance		-12.5	%		-20.9	%
Tax credits		-15.3	%		3.2	%
Permanent differences		0.8	%		0.0	%
Stock-based compensation		10.1	%		-1.3	%
Other		-2.3	%		-1.0	%
Total income tax benefit		0.0	%		0.0	%

- Definition

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

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+ Details

Subsequent Events

12 Months Ended

Dec. 31, 2022

Subsequent Events [Abstract]

Subsequent Events

Note 14. Subsequent Events

We issued 730,913 shares of our common stock after December 31, 2022 but before the issuance of this report, which would have further diluted our net income per share had they been issued prior to December 31, 2022. These shares were issued pursuant to our Equity Distribution Agreement with Piper Sandler.

On February 28, 2023, the Company received a $2.5 million milestone payment from HCR pursuant to our Royalty Purchase Agreement. Proceed from the milestone payment was recorded as other income in the consolidated statement of operations for the year ended December 31, 2022, using the most likely method in accordance with ASC 610-20 Other Income — Gains and Losses from the Derecognition of Nonfinancial Assets.

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 and to 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 we are eligible to receive additional post-closing payment of $0.05 million if the deferred payment in respect of net sales under our LLC Purchase Agreement with Medexus for the first calendar quarter of 2023 (“Q1 2023”) exceeds $0.5 million. 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 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.

On March 29, 2023, we used a portion of the proceeds from our Purchase Agreement with XOMA to fully repay $2.8 million outstanding principal of our MidCap debt, including payment of $0.3 million in exit fees.

Nature of Business and Significant Accounting Policies (Policies)

12 Months Ended

Dec. 31, 2022

Accounting Policies [Abstract]

Basis of Presentation

Use of Estimates

Cash Equivalents

Restricted Cash

Concentrations of Credit Risk

Property and Equipment

Property and equipment are stated at cost. Depreciation is computed using the straight-line method over the following estimated useful lives:


Furniture and equipment	7-10 years
Software and hardware	3-5 years or product life
Leasehold improvements	Lesser of the asset life or the remaining lease term

Leases

Fair Value of Financial Instruments

Debt Issuance Costs

Debt Modification

Royalty Revenue

RUXIENCE Royalty Revenue

Research and Development expense

Research and Development Expenses

General and Administrative Expenses

Stock-Based Compensation

•

the expected volatility of our underlying common stock, which we estimate based on the historical volatility of the historical and implied future volatility of our common stock;

•

the risk-free interest rate, which we based on the yield curve of U.S. Treasury securities with periods commensurate with the expected term of the options being valued;

•

the expected dividend yield, which we estimate to be zero based on the fact that we have never paid cash dividends and have no present intention to pay cash dividends; and

•

the fair value of our common stock on the date of grant.

We routinely evaluate the appropriateness of the forfeiture rate based on actual forfeiture experience, analysis of employee turnover, and expectations of future option exercise behavior.

Income Taxes

Segment Reporting

Recently Adopted Accounting Pronouncement

Segment Reporting

Recent Accounting Pronouncements

Recently Adopted Accounting Pronouncement

Nature of Business and Significant Accounting Policies (Tables)

12 Months Ended

Dec. 31, 2022

Accounting Policies [Abstract]

Schedule of Estimated Useful Lives of Property and Equipment

Depreciation is computed using the straight-line method over the following estimated useful lives:


Furniture and equipment	7-10 years
Software and hardware	3-5 years or product life
Leasehold improvements	Lesser of the asset life or the remaining lease term

Discontinued Operations (Tables)

12 Months Ended

Dec. 31, 2022

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 consolidated statements of operations (in thousands):


	For the Year Ended December 31,
	2022		2021
Deferred payments from Medexus		1,013		491
Gain on contingent consideration from Saol		—		460
Income from discontinued operations	$	1,013	$	951

- 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

Cash, Cash Equivalents, and Restricted Cash (Tables)

12 Months Ended

Dec. 31, 2022

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 current restricted cash as of December 31, 2022 and 2021:


	For the Year Ended December 31,
(in thousands)	2022		2021
Cash	$	1,066	$	3,841
Cash equivalents		21,569		41,203
Restricted cash		—		1,259
Total cash, cash equivalents, and restricted cash	$	22,635	$	46,303

Property and Equipment, Net (Tables)

12 Months Ended

Dec. 31, 2022

Property Plant And Equipment [Abstract]

Summary of Property and Equipment

Property and equipment consist of the following:


	For the Year Ended December 31,
(in thousands)	2022			2021
Leasehold improvements	$	2,228		$	2,228
Furniture and equipment		12,260			12,430
Property and equipment, gross		14,488			14,658
Less: Accumulated depreciation		(13,026	)		(12,279	)
Total property and equipment, net	$	1,462		$	2,379

Debt (Tables)

12 Months Ended

Dec. 31, 2022

Debt Disclosure [Abstract]

Schedule of Future Principal, Interest, and Other Related Fee Payments in Connection with the Credit Agreement

Future principal, interest, and other related fee payments in connection with the Credit Agreement as of December 31, 2022 are as follows:


(in thousands)
2023	$	2,279
2024		1,727
Total	$	4,006

Liability Related to Sale of Future Royalties (Tables)

12 Months Ended

Dec. 31, 2022

Sale Of Future Royalties Liability Disclosure [Abstract]

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

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


	For the year ended December 31,
	2022			2021
Liability related to sale of royalties, beginning balance	$	31,045		$	—
Proceeds from sale of royalties, net of transaction costs		—			33,900
Proceeds from milestone payments, net of transaction costs		9,500			—
Non-cash interest expense		3,416			5,772
RUXIENCE royalties paid by Pfizer to HCR		(6,779	)		(8,627	)
Gain from extinguishment of liability related to sale of royalties		(37,182	)		—
Liability related to sale of royalties, ending balance		—			31,045
Current portion of liability related to sale of royalties		—			(15,465	)
Liability related to sale of royalties, non-current	$	—		$	15,580

Leases and Contingencies (Tables)

12 Months Ended

Dec. 31, 2022

Leases [Abstract]

Components of Lease Expense

Components of lease expense:


	For the year ended December 31,		For the year ended December 31,
(in thousands)	2022		2021
Operating lease cost	$	1,277	$	1,556
Total lease cost	$	1,277	$	1,556

Summary of Right of Use Assets Acquired Under Operating Leases

Right-of-use assets acquired under operating leases:


	As of December 31,		As of December 31,
(in thousands)	2022		2021
Operating leases, excluding Seattle office lease	$	—	$	7
Seattle office lease, including amendment		5,303		1,577
Total right-of-use assets	$	5,303	$	1,584

Lease payments:


	For the year ended December 31,		For the year ended December 31,
(in thousands)	2022		2021
For operating leases	$	895	$	1,387

Summary of Future Minimum Lease Payments

Future minimum payments as of December 31, 2022 are as follows:


(in thousands)
2023		1,147
2024		1,376
2025		1,376
2026 and beyond		5,963
Total future minimum lease payments		9,862
Less: imputed interest		(3,402	)
Total	$	6,460

Net Income (Loss) per Share (Tables)

12 Months Ended

Dec. 31, 2022

Earnings Per Share [Abstract]

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

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


	For the Year Ended December 31,
	2022		2021
Net income (loss) from continuing operations	$	7,014	$	(29,408	)
Income from discontinued operations		1,013		951
Net income (loss)	$	8,027	$	(28,457	)

Basic and diluted net income (loss) per share from continuing operations:
Basic	$	1.37	$	(6.27	)
Diluted	$	1.37	$	(6.27	)
Basic and diluted net income per share from discontinued operations:
Basic	$	0.20	$	0.20
Diluted	$	0.20	$	0.20

Shares used in calculation
Basic		5,100,310		4,687,952
Diluted		5,102,914		4,687,952

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

The following table represents all potentially dilutive shares:


	As of December 31,
(in thousands, except for per share amounts)	2022		2021
Warrants		351		351
Outstanding options to purchase common stock		364		334
Unvested RSUs		224		57

Equity (Tables)

12 Months Ended

Dec. 31, 2022

Equity [Abstract]

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

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


	For the Year Ended December 31,
(in thousands)	2022		2021
Research and development	$	196	$	510
General and administrative		1,606		1,133
Total stock-based compensation expense	$	1,802	$	1,643

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 Year Ended December 31,
	2022	2021
Expected dividend yield	0.00%	0.00%
Expected volatility	106.24%	99.15%
Risk-free interest rate	1.71%	0.61%
Expected average life of options	5 years	5 years

Summary of Stock Option Activity

The following is a summary of option activity for the year ended December 31, 2022:


	Number of Shares			Weighted- Average Exercise Price		Weighted- Average Remaining Term		Aggregate Intrinsic Value (in thousands)
Outstanding at December 31, 2021		334,412		$	19.17		8.70	$	43,210
Granted		69,588			5.54		—		—
Exercised		(85	)		6.97		—		21
Forfeited		(39,649	)		25.61		—		—
Outstanding at December 31, 2022		364,266			15.77		7.39		—
Exercisable at December 31, 2022		187,838		$	13.73		6.33		—
Vested and expected to vest at December 31, 2022		321,078		$	15.77		7.21	$	—

Summary of RSU Activity

The following is a summary of restricted stock activity for the year ended December 31, 2022:


	Number of Units			Weighted Average Fair Value per Unit
Outstanding at December 31, 2021		56,810		$	30.66
Granted		199,604			5.05
Vested		(17,903	)		30.43
Forfeited		(14,736	)		21.08
Outstanding at December 31, 2022		223,775		$	8.47
Expected to Vest		223,775		$	8.47

Income Taxes (Tables)

12 Months Ended

Dec. 31, 2022

Income Tax Disclosure [Abstract]

Schedule of Income (Loss) from Continuing Operations Before Income Taxes

The components of income (loss) before income taxes were as follows (in thousands):


	Year ended December 31,
(in thousands)	2022		2021
US	$	7,014	$	(29,408	)
Income (loss) from continuing operations before benefit from income taxes	$	7,014	$	(29,408	)

Schedule of Tax Effects of Temporary Differences Give Rise to Significant Portions of Deferred Tax Assets and Deferred Tax Liabilities

The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities are presented below:


	For the Year Ended December 31,
(in thousands)	2022			2021
Federal losses carryforward	$	32,793		$	33,520
Capitalized research expenditures		3,361			—
Intangible assets		195			235
Stock-based compensation		912			986
State losses carryforward		3,799			3,743
Other deferred tax assets		496			2,023
Other tax credits		4,852			3,253
Lease Liabilities		1,371			496
Fixed Assets		442			456
Gain related to sale of future royalties		2,016			5,866
Deferred tax assets, gross		50,237			50,578
Valuation allowance		(49,113	)		(50,245	)
Deferred tax assets, net of valuation		1,124			333
ROU Assets		(1,124	)		(333	)
Deferred tax liability		(1,124	)		(333	)
Net deferred tax assets	$	—		$	—

Schedule of Reconciliation of Federal Statutory Income Tax Rate to Effective Income Tax from Continuing Operations

The reconciliation of the federal statutory income tax rate to the Company’s effective income tax from continuing operations is as follows:


	Year ended December 31,
	2022			2021
Federal tax at statutory rates		21.0	%		21.0	%
State taxes, net of federal benefit		-1.8	%		-1.0	%
Change in valuation allowance		-12.5	%		-20.9	%
Tax credits		-15.3	%		3.2	%
Permanent differences		0.8	%		0.0	%
Stock-based compensation		10.1	%		-1.3	%
Other		-2.3	%		-1.0	%
Total income tax benefit		0.0	%		0.0	%

Nature of Business and Significant Accounting Policies - Additional Information (Details) $ in Thousands					1 Months Ended		12 Months Ended
	Feb. 28, 2023 USD ($)	Jun. 07, 2022	Mar. 08, 2022 USD ($)	Mar. 30, 2021 USD ($)	Mar. 31, 2022 USD ($)	Mar. 31, 2021 USD ($)	Dec. 31, 2022 USD ($) Platform	Dec. 31, 2021 USD ($)	Aug. 30, 2022
Nature Of Business [Line Items]
Number of technology platforms \| Platform							2
Net Income Loss							$ 8,027	$ (28,457)
Accumulated deficit							(206,036)	(214,063)
Net cash used in operating activities							$ (21,022)	(21,679)
Cash equivalents, maturity period							90 days
Current restricted cash								1,259
Payment Of Amount Outstanding				$ 10,000
Proceeds from Sale of Investments						$ 35,000
Revenue from related Parties							$ 12,500
Milestone Payment			$ 10,000			10,000
Additional milestone payment							10,000
One time payment of royalties							$ 6,779	$ 8,627
Payment Of Royalty Revenue Percentage		50.00%
Stock Option
Nature Of Business [Line Items]
Expected dividend yield							0.00%	0.00%
Estimated forfeiture rate							30.00%	23.00%
H C R
Nature Of Business [Line Items]
Proceeds from sale of investments used				10,000
Payment Of Amount Outstanding				15,000
R U X I E N C E
Nature Of Business [Line Items]
Royalty revenue					2.50%
One time payment of royalties					$ 2,500
Letter of Credit
Nature Of Business [Line Items]
Current restricted cash							$ 0	$ 1,300
Minimum \| H C R
Nature Of Business [Line Items]
Payment Of Amount Outstanding				15,000
Maximum
Nature Of Business [Line Items]
Cash equivalents, maturity period							90 days
Revenue from related Parties								$ 10,000
Maximum \| H C R
Nature Of Business [Line Items]
Payment Of Amount Outstanding				$ 25,000
Maximum \| R U X I E N C E
Nature Of Business [Line Items]
Revenue from related Parties						32,500
Credit Agreement [Member]
Nature Of Business [Line Items]
Payment Of Amount Outstanding							$ 2,000
Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate \| Credit Agreement [Member]
Nature Of Business [Line Items]
Interest rate									6.25%
Floor interest rate									1.50%
Cap interest rate									2.50%
Mid Cap Financial \| H C R
Nature Of Business [Line Items]
Proceeds from sale of investments used						$ 10,000
Mid Cap Financial \| Minimum \| H C R
Nature Of Business [Line Items]
Payment Of Amount Outstanding							15,000
Mid Cap Financial \| Maximum \| H C R
Nature Of Business [Line Items]
Payment Of Amount Outstanding							25,000
Nasdaq Capital Market
Nature Of Business [Line Items]
Net Income Loss							8,000
Accumulated deficit							206,000
Net cash used in operating activities							$ 21,000
Subsequent Event
Nature Of Business [Line Items]
Milestone Payment	$ 2,500

Nature of Business and Significant Accounting Policies - Schedule of Estimated Useful Lives of Property and Equipment (Details)	12 Months Ended
	Dec. 31, 2022
Furniture and Equipment \| Minimum
Property Plant And Equipment [Line Items]
Estimated useful lives	7 years
Furniture and Equipment \| Maximum
Property Plant And Equipment [Line Items]
Estimated useful lives	10 years
Software and Hardware
Property Plant And Equipment [Line Items]
Estimated useful lives	product life
Software and Hardware \| Minimum
Property Plant And Equipment [Line Items]
Estimated useful lives	3 years
Software and Hardware \| Maximum
Property Plant And Equipment [Line Items]
Estimated useful lives	5 years
Leasehold Improvements
Property Plant And Equipment [Line Items]
Estimated useful lives	Lesser of the asset life or the remaining lease term

Discontinued Operations - Additional Information (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Jun. 30, 2022	Jun. 29, 2022
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items]
Deferred payments from Medexus	$ 1,013	$ 491
Deferred payments increase percentage			5.00%	2.00%
IXINITY
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items]
Deferred payments from Medexus	$ 1,000
Accounts receivable and deferred payments from Medexus		500
Hyperimmune Business
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items]
Deferred payments from Medexus		$ 500

Discontinued Operations - Summary of Reconciliation of Carrying Amounts of Assets and Liabilities and Income (Loss) from Discontinued Operation (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Discontinued Operations And Disposal Groups [Abstract]
Deferred payments from Medexus	$ 1,013	$ 491
Gain on contingent consideration from Saol		460
Income from discontinued operations	$ 1,013	$ 951

- 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.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 944
-SubTopic 220
-Section S99
-Paragraph 1
-Subparagraph (SX 210.7-04(12))
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-Name Accounting Standards Codification
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+ Details

Collaboration Agreements - Additional Information (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Organization Consolidation And Presentation Of Financial Statements [Abstract]
Research and development expense	$ 1.7	$ 0.1

Fair Value Measurements - Additional Information (Details) - USD ($)	Dec. 31, 2022	Dec. 31, 2021
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Money market funds	$ 21,600,000	$ 41,200,000
Level Two
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Fair value assets	0	0
Fair value liabilities	0	0
Level Three
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Fair value assets	0	0
Fair value liabilities	$ 0	$ 0

Cash, Cash Equivalents, and Restricted Cash - Additional Information (Details)	12 Months Ended
	Dec. 31, 2022
Restricted Cash And Cash Equivalents Items [Line Items]
Cash equivalents, maturity period	90 days

Cash, Cash Equivalents, and Restricted Cash - Schedule of Cash, Cash Equivalents and Restricted Cash, Both Current and Long-term Portion (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Cash And Cash Equivalents [Abstract]
Cash	$ 1,066	$ 3,841
Cash equivalents	21,569	41,203
Restricted cash		1,259
Total cash, cash equivalents, and restricted cash	$ 22,635	$ 46,303

Property and Equipment, Net - Summary of Property and Equipment (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Property Plant And Equipment [Line Items]
Property and equipment, gross	$ 14,488	$ 14,658
Less: Accumulated depreciation	(13,026)	(12,279)
Total property and equipment, net	1,462	2,379
Leasehold Improvements
Property Plant And Equipment [Line Items]
Property and equipment, gross	2,228	2,228
Furniture and Equipment
Property Plant And Equipment [Line Items]
Property and equipment, gross	$ 12,260	$ 12,430

Property and Equipment, Net - Additional Information (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Property Plant And Equipment [Abstract]
Depreciation expense	$ 0.9	$ 1.1

Debt - Additional Information (Details) - USD ($) $ in Thousands				1 Months Ended	12 Months Ended
	Mar. 30, 2021	Nov. 06, 2020	Aug. 05, 2020	Mar. 31, 2021	Dec. 31, 2022	Dec. 31, 2021	Aug. 30, 2022
Line Of Credit Facility [Line Items]
Maximum borrowing capacity			$ 25,000
Payment Of Amount Outstanding	$ 10,000
Repayments of subordinated debt	5,000				$ 12,267	$ 10,550
Amendment Fees	600
Additional prepayment fees	600
Credit Agreement [Member]
Line Of Credit Facility [Line Items]
Maximum borrowing capacity			$ 25,000
Payment Of Amount Outstanding					2,000
Remaining principal balance payable					3,500
Interest expense					600	$ 1,400
H C R
Line Of Credit Facility [Line Items]
Proceeds from sale of investments used	10,000
Payment Of Amount Outstanding	$ 15,000
Principal balance payable date	Mar. 01, 2022
H C R \| Maximum
Line Of Credit Facility [Line Items]
Payment Of Amount Outstanding	$ 25,000
H C R \| Minimum
Line Of Credit Facility [Line Items]
Payment Of Amount Outstanding	$ 15,000
Tang
Line Of Credit Facility [Line Items]
Purchase of shares of common stock		1,760,000
Percentage of common stock shares issued and outstanding		54.00%
Business acquisition, description		This acquisition of voting stock triggered a change in control, resulting in an Event of Default under Section 10.1(a)(ii) of the Credit Agreement. On November 10, 2020, the Company obtained a waiver from MidCap Financial pursuant to which, among other things, MidCap Financial waived such Event of Default and MidCap Financial and the Company agreed that an immediate event of default under the Credit Agreement will be deemed to have occurred in the event that (a) a majority of the seats on the Company’s board of directors are occupied by persons who were neither (i) nominated by the Company’s board of directors nor (ii) appointed by the directors so nominated, and (b) Tang has appointed the majority of the Company’s board of directors. No other events of default have occurred with respect to the Credit Agreement.
London Interbank Offered Rate LIBOR [Member] \| Credit Agreement [Member]
Line Of Credit Facility [Line Items]
Line of credit facility, borrowing capacity, description			The term loan facility has a 48 month term, is interest-only for the first 18 months, with straight-line amortization for the remaining 30 months and bears interest at a rate of one month LIBOR plus 6.25% per annum, subject to a 1.50% LIBOR floor and a 2.50% LIBOR cap.
Interest rate			6.25%
Floor interest rate			1.50%
Cap interest rate			2.50%
Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate \| Credit Agreement [Member]
Line Of Credit Facility [Line Items]
Interest rate							6.25%
Floor interest rate							1.50%
Cap interest rate							2.50%
Mid Cap Financial \| H C R
Line Of Credit Facility [Line Items]
Proceeds from sale of investments used				$ 10,000
Mid Cap Financial \| H C R \| Maximum
Line Of Credit Facility [Line Items]
Payment Of Amount Outstanding					25,000
Mid Cap Financial \| H C R \| Minimum
Line Of Credit Facility [Line Items]
Payment Of Amount Outstanding					$ 15,000

Debt - Schedule of Future Principal, Interest, and Other Related Fee Payments in Connection with the Credit Agreement (Details) $ in Thousands	Dec. 31, 2022 USD ($)
Debt Disclosure [Abstract]
2023	$ 2,279
2024	1,727
Total	$ 4,006

- Definition

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

+ References + Details

Liability Related to Sale of Future Royalties - Additional Information (Details) - USD ($) $ in Thousands				1 Months Ended	12 Months Ended
	Feb. 28, 2023	Jun. 07, 2022	Mar. 08, 2022	Mar. 31, 2021	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Debt Instrument [Line Items]
Proceeds from Sale of Investments				$ 35,000
Revenue from related Parties						$ 12,500
Payment of royalty purchase agreement		190.00%
Milestone Payment			$ 10,000	10,000
Proceeds from royalties received							$ 33,900
Payment of royalty revenue		50.00%
Proceeds from milestones related to sale of royalties						10,000
Transaction costs						500
Additional milestone payment						10,000
Non-cash interest expense						3,416	5,772
Subsequent Event
Debt Instrument [Line Items]
Milestone Payment	$ 2,500
Scenario Forecast
Debt Instrument [Line Items]
Revenue from related Parties					$ 10,000
Maximum
Debt Instrument [Line Items]
Revenue from related Parties							$ 10,000
R U X I E N C E \| Maximum
Debt Instrument [Line Items]
Revenue from related Parties				$ 32,500
H C R
Debt Instrument [Line Items]
Transaction costs						1,100
Proceeds from milestones related to sale of royalties						10,000
Transaction costs						500
H C R \| Liability
Debt Instrument [Line Items]
Proceeds from royalties received						$ 35,000

Schedule of Changes in the Liability Related to the Sale of Future Royalties (Details) - USD ($) $ in Thousands		12 Months Ended
	Jun. 07, 2022	Dec. 31, 2022	Dec. 31, 2021
Debt Disclosure [Abstract]
Liability related to sale of royalties, beginning balance		$ 31,045
Proceeds from sale of royalties, net of transaction costs			$ 33,900
Proceeds from milestone payments, net of transaction costs		9,500
Non-cash interest expense		3,416	5,772
RUXIENCE royalties paid by Pfizer to HCR		(6,779)	(8,627)
Gain from extinguishment of liability related to sale of royalties	$ (37,200)	$ (37,182)
Liability related to sale of royalties, ending balance			31,045
Current portion of liability related to sale of royalties			(15,465)
Liability related to sale of royalties, non-current			$ 15,580

Leases and Contingencies - Additional Information (Details) $ in Thousands	1 Months Ended	12 Months Ended
	Mar. 31, 2019 RenewalOption	Dec. 31, 2022 USD ($) Equipment	Dec. 31, 2021 USD ($)	May 26, 2022 USD ($)
Lessee Lease Description [Line Items]
Operating lease number of piece for lab equipment \| Equipment		0
Operating lease right-of-use asset		$ 5,303	$ 1,584	$ 4,400
Operating lease liability		$ 6,460
Financing lease number of equipment \| Equipment		0
Long term portion of operating lease liabilities		$ 6,079	1,341
Current portion of operating lease liabilities		$ 400	$ 1,000
Operating Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration]		Other Liabilities Current	Other Liabilities Current
Weighted average remaining lease term for operating leases		7 years 3 months 18 days	1 year 3 months 18 days
Weighted discount rate for operating leases		12.03%	14.46%
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
Variable expense		$ 700	$ 800

Leases and Contingencies - Components of Lease Expense (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Leases [Abstract]
Operating lease cost	$ 1,277	$ 1,556
Finance lease cost:
Total lease cost	$ 1,277	$ 1,556

Leases and Contingencies - Summary of Right of Use Assets Acquired Under Operating Leases (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	May 26, 2022
Lessee Lease Description [Line Items]
Total right-of-use assets	$ 5,303	$ 1,584	$ 4,400
For operating leases	895	1,387
Operating Leases, Excluding Seattle Office Lease
Lessee Lease Description [Line Items]
Total right-of-use assets		7
Seattle Office Lease, Including Amendment
Lessee Lease Description [Line Items]
Total right-of-use assets	$ 5,303	$ 1,577

Leases and Contingencies - Summary of Future Minimum Lease Payments (Details) $ in Thousands	Dec. 31, 2022 USD ($)
Leases [Abstract]
2023	$ 1,147
2024	1,376
2025	1,376
2026 and beyond	5,963
Total future minimum lease payments	9,862
Less: imputed interest	(3,402)
Total	$ 6,460

Net Income (Loss) Per Share - Computation of Basic and Diluted Net Income (Loss) per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Earnings Per Share [Abstract]
Net income (loss) from continuing operations	$ 7,014	$ (29,408)
Income from discontinued operations	1,013	951
Net income (loss)	$ 8,027	$ (28,457)
Basic net income (loss) per share from continuing operations:
Basic	$ 1.37	$ (6.27)
Diluted net income (loss) per share from continuing operations:
Diluted	1.37	(6.27)
Basic net income per share from discontinued operations:
Basic	0.20	0.20
Diluted net income per share from discontinued operations:
Diluted	$ 0.20	$ 0.20
Basic shares used in calculation:
Basic	5,100,310	4,687,952
Diluted shares used in calculation:
Diluted	5,102,914	4,687,952

Net Income (Loss) Per Share - Summary of Potentially Dilutive Shares Excluded from Calculation of Net Loss Per Share (Details) - shares shares in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
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	364	334
Unvested RSUs
Schedule Of Earnings Per Share Basic And Diluted [Line Items]
Anti-dilutive shares excluded from calculation of diluted net loss per share	224	57

Equity - Additional Information (Details) - USD ($)					1 Months Ended	12 Months Ended
Equity - Additional Information (Details) - USD ($)	Feb. 16, 2022	Dec. 14, 2020	Nov. 08, 2020	Jun. 01, 2018	Mar. 31, 2019	Dec. 31, 2022	Dec. 31, 2021	Jun. 07, 2022	May 31, 2017	Aug. 01, 2016
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Warrants exercise price, per share						$ 0	$ 18.20
Number of common stock shares to be issued upon exercise of warrants							54,105
Proceeds from exercises of warrants							$ 985,000
Proceeds upon exercise of stock options							220,000
Issuance of common stock, net						$ 6,934,000	$ 10,234,000
Common stock, shares issued						6,466,294	4,898,143
Proceeds from issuance of common stock						$ 6,934,000	$ 10,233,000
Preferred stock, par value						$ 0.001	$ 0.001
Common stock, par value						0.001	0.001
Weighted-average grant date fair value per share of options granted						$ 4.36	$ 23.02
Total intrinsic value of options exercised						$ 0	$ 400,000
Total fair value of stock option vested						$ 1,300,000	$ 1,600,000
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]
Options expected to vest, weighted average period						1 year 7 months 6 days	2 years 2 months 12 days
Unrecognized compensation expense						$ 1,500,000	$ 1,400,000
Stock Option
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Common stock issued upon exercise of stock options						85
Estimated forfeiture rate						30.00%	23.00%
Unrecognized compensation expense						$ 1,900,000
Options expected to vest, weighted average period						1 year 3 months 18 days
Number of share options forfeited						39,649
2016 Stock Incentive Plan
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Stock authorized for issuance under Stock Plan										200,000
2016 Stock Incentive Plan \| Unvested RSUs
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Increase of authorized shares issuable									100,000
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						400,000
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]
Warrants exercise price, per share			$ 400.00
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
Percentage of beneficial ownership			10.00%
Minimum \| Stock Option
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Expected volatility						$ 2.00	$ 6.48
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						$ 8.42	$ 40.59
Maximum \| 2018 Stock Incentive Plan \| Unvested RSUs
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Stock plan vesting period				3 years
Equity Distribution Agreement
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Proceeds from issuance of common stock						$ 7,000,000.0
Issuance of common stock shares							0
Average share price						$ 4.92
Common stock, par value		$ 0.001
Warrants
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Warrants outstanding						350,589	350,589
Warrants outstanding, term					5 years
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
Common Stock
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Common stock issued upon vesting of restricted stock units and exercised stock options (in shares)						16,809	0
Proceeds upon exercise of stock options							$ 200,000
Common stock issued upon exercise of stock options							26,082
Issuance of common stock, net						$ 1,000	$ 1,000
Issuance of common stock shares						1,452,065	407,047
Common Stock \| Purchase Agreement \| Lincoln Park
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Proceeds from issuance of common stock							$ 10,200,000
Shares of common stock issued for cash consideration						0
Issuance of common stock shares	99,276					99,276	407,047
Cash consideration as an initial fee for commitment to purchase shares of common stock	$ 0
Common Stock \| Purchase Agreement \| Minimum \| Lincoln Park
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Minimum prevailing market price to direct purchase	$ 1.00
Common Stock \| Purchase Agreement \| Maximum \| Lincoln Park
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Issuance of common stock, net	$ 35,000,000.0
Common Stock \| Equity Distribution Agreement
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Issuance of common stock shares						1,452,065
Common Stock \| Equity Distribution Agreement \| Maximum
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Aggregate offering price		$ 50,000,000.0

Equity - Summary of Stock-based Compensation Expense Includes Amortization of Stock Options and Restricted Stock Units Granted (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Stock-based compensation expense	$ 1,802	$ 1,643
Research and Development
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Stock-based compensation expense	196	510
General and Administrative
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Stock-based compensation expense	$ 1,606	$ 1,133

Equity - Assumptions used in Valuing the Stock Options Granted under Black-Scholes Valuation Model (Details) - Stock Option	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Expected dividend yield	0.00%	0.00%
Expected volatility	106.24%	99.15%
Risk-free interest rate	1.71%	0.61%
Expected average life of options	5 years	5 years

Equity - Summary of Stock Option Activity (Details) - Stock Option - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Number of Shares, Outstanding, Beginning balance	334,412
Number of Shares, Granted	69,588
Number of Shares, Exercised	(85)
Number of Shares, Forfeited	(39,649)
Number of Shares, Outstanding, Ending balance	364,266	334,412
Number of Shares, Exercisable	187,838
Number of Units, Vest and expected to Vest	321,078
Weighted-Average Exercise Price, Outstanding, Beginning balance	$ 19.17
Weighted-Average Exercise Price, Granted	5.54
Weighted-Average Exercise Price, Exercised	6.97
Weighted-Average Exercise Price, Forfeited	25.61
Weighted-Average Exercise Price, Outstanding, Ending balance	15.77	$ 19.17
Weighted-Average Exercise Price, Exercisable	13.73
Weighted-Average Exercise Price, vest and expected to vest	$ 15.77
Weighted-Average Remaining Term, Outstanding	7 years 4 months 20 days	8 years 8 months 12 days
Weighted-Average Remaining Term, Exercisable	6 years 3 months 29 days
Weighted-Average Remaining Term, Vested and expected to vest	7 years 2 months 15 days
Aggregate Intrinsic Value, Outstanding, Beginning balance	$ 43,210
Aggregate Intrinsic Value, Exercised	$ 21
Aggregate Intrinsic Value, Outstanding, Ending balance		$ 43,210

Equity - Summary of Restricted Stock Activity (Details) - Unvested RSUs	12 Months Ended
	Dec. 31, 2022 $ / shares shares
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Number of Units, Outstanding, Beginning balance \| shares	56,810
Number of Units, Granted \| shares	199,604
Number of Units, Vested \| shares	(17,903)
Number of Units, Forfeited \| shares	(14,736)
Number of Units, Outstanding, Ending balance \| shares	223,775
Number of Units, Expected to Vest \| shares	223,775
Weighted Average Fair Value per Unit, Outstanding Beginning Balance \| $ / shares	$ 30.66
Weighted Average Fair Value per Unit, Granted \| $ / shares	5.05
Weighted Average Fair Value per Unit, Vested \| $ / shares	30.43
Weighted Average Fair Value per Unit, Forfeited \| $ / shares	21.08
Weighted Average Fair Value per Unit, Outstanding Ending Balance \| $ / shares	8.47
Weighted Average Fair Value per Unit, Expected to Vest \| $ / shares	$ 8.47

401(K) Savings Plan - Additional Information (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Defined Contribution Plan Disclosure [Line Items]
Maximum employee deferral rate	6.00%
Matching contributions made by employer	$ 0.2	$ 0.2
Maximum
Defined Contribution Plan Disclosure [Line Items]
Employer matching contribution, qualified deferral percentage	50.00%

- Definition

Amount of contribution received by defined benefit plan from employer which increases plan assets.

+ References + Details

Income Taxes - Additional Information (Details) - USD ($)	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Income Taxes [Line Items]
Income tax expense (benefit)	$ 0	$ 0
Decrease in valuation allowance	(1,100,000)
Net operating loss carryforwards	141,100,000
Uncertain income tax positions	0
Federal
Income Taxes [Line Items]
Net operating loss carryforwards	156,200,000	159,600,000
Amount of operating loss due to expire	15,100,000
State
Income Taxes [Line Items]
Net operating loss carryforwards	71,100,000	70,300,000
Tax credit carryforwards	$ 4,900,000	$ 3,300,000
Earliest Tax Year \| Federal
Income Taxes [Line Items]
Operating losses, begin to expiration year	2037
Tax credits, begin to expiration year	2037

Income Taxes - Schedule of Income (Loss) from Continuing Operations Before Income Taxes (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Income Tax Disclosure [Abstract]
US	$ 7,014	$ (29,408)
Income (loss) from continuing operations before benefit from income taxes	$ 7,014	$ (29,408)

- Definition

Amount of income (loss) from continuing operations, including income (loss) from equity method investments, before deduction of income tax expense (benefit), and income (loss) attributable to noncontrolling interest.

+ References

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-Name Accounting Standards Codification
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-Section 25
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-Name Accounting Standards Codification
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-Name Accounting Standards Codification
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-Publisher FASB
-Name Accounting Standards Codification
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-Name Accounting Standards Codification
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+ Details

Income Taxes - Schedule of Tax Effects of Temporary Differences Give Rise to Significant Portions of Deferred Tax Assets and Deferred Tax Liabilities (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Income Tax Disclosure [Abstract]
Federal losses carryforward	$ 32,793	$ 33,520
Capitalized research expenditures	3,361
Intangible assets	195	235
Stock-based compensation	912	986
State losses carryforward	3,799	3,743
Other deferred tax assets	496	2,023
Other tax credits	4,852	3,253
Lease Liabilities	1,371	496
Fixed Assets	442	456
Gain related to sale of future royalties	2,016	5,866
Deferred tax assets, gross	50,237	50,578
Valuation allowance	(49,113)	(50,245)
Deferred tax assets, net of valuation	1,124	333
ROU Assets	(1,124)	(333)
Deferred tax liability	$ (1,124)	$ (333)

Income Taxes - Schedule of Reconciliation of Federal Statutory Income Tax Rate to Effective Income Tax from Continuing Operations (Details)	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Income Tax Disclosure [Abstract]
Federal tax at statutory rates	21.00%	21.00%
State taxes, net of federal benefit	(1.80%)	(1.00%)
Change in valuation allowance	(12.50%)	(20.90%)
Tax credits	(15.30%)	3.20%
Permanent differences	0.80%	0.00%
Stock-based compensation	10.10%	(1.30%)
Other	(2.30%)	(1.00%)
Total income tax benefit	0.00%	0.00%

Subsequent Events - Additional Information (Details) - USD ($) $ in Thousands					1 Months Ended	12 Months Ended
	Mar. 29, 2023	Mar. 20, 2023	Feb. 28, 2023	Mar. 08, 2022	Mar. 31, 2021	Dec. 31, 2022	Dec. 31, 2021
Subsequent Event [Line Items]
Milestone Payment				$ 10,000	$ 10,000
Income from discontinued operations						$ 1,013	$ 951
Deferred payments from Medexus						$ 1,013	$ 491
Equity Distribution Agreement
Subsequent Event [Line Items]
Issuance of common stock shares							0
Subsequent Event
Subsequent Event [Line Items]
Milestone Payment			$ 2,500
Subsequent Event \| Equity Distribution Agreement
Subsequent Event [Line Items]
Issuance of common stock shares		730,913
Subsequent Event \| Payment Interest Purchase Agreement
Subsequent Event [Line Items]
Income from discontinued operations	$ 9,600
Additional post-closing payment	50
Deferred payments from Medexus	$ 500
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