7. Impairment of Right-of-Use Assets

In connection with the Company’s Phase 3 ENLIGHTEN 1 trial failing to meet its primary endpoint, in May 2024, the Company engaged a commercial real estate broker to market the Company’s three leased properties for sublease arrangements. Based upon these impairment indicators, the Company performed a recoverability test over its right-of-use assets in 2024 and concluded that the right-of-use assets were impaired. As a result, the Company recorded an impairment charge in the amount of $22.8 million during the second quarter of 2024, which is included as an impairment of right-of-use asset in the consolidated statements of operations and comprehensive loss for the year ended December 31, 2024. The Company reassessed the need for any further impairment as of December 31, 2025, and determined no additional impairment indicators existed. As of December 31, 2025, the Company has not sublet any of its leased properties.