0001193125-23-160060 | S-4/A | XBRL Viewer

Schedule of Prepaid Expenses and Other Current Assets

Prepaid expenses and other current assets consist of the following:


	March 31, 2023		December 31, 2022
	(in thousands)
Prepaid expenses	$	2,036	$	1,429
Other current assets		590		560

Total prepaid expenses and other current assets	$	2,626	$	1,989

Prepaid expenses and other current assets consist of the following:


	December 31,
	2022		2021
	(in thousands)
Prepaid expenses	$	1,429	$	1,143
Other current assets		560		399

Total prepaid expenses and other current assets	$	1,989	$	1,542

Other License Agreements	12 Months Ended
Other License Agreements	Jun. 30, 2022
Licensing Arrangements [Abstract]
Other License Agreements	Note 4. Other License Agreements Presage License Agreement In September 2017, we, as licensee, entered into a license agreement with Presage Biosciences, Inc. (“Presage”). Under the terms of the license agreement, Presage granted to us exclusive worldwide rights to develop, manufacture and commercialize voruciclib, a clinical-stage, oral and selective CDK inhibitor, and related compounds. In exchange, we paid $2.9 million to Presage. With respect to the first indication, an incremental $2.0 million payment, due upon dosing of the first subject in the first registration trial, will be owed to Presage, for total payments of $4.9 million prior to receipt of marketing approval of the first indication in the U.S., EU or Japan. Additional potential payments of up to $179 million will be due upon the achievement of certain development, regulatory and commercial milestones. We will also pay mid-single digit tiered royalties on the net sales of any product successfully developed. As an alternative to milestone and royalty payments related to countries in which we sublicense product rights, we will pay to Presage a tiered percentage (which decreases as product development progresses) of amounts received from such sublicensees. Helsinn License Agreement In August 2016, we entered into an exclusive worldwide license, development, manufacturing and commercialization agreement with Helsinn Healthcare SA, a Swiss pharmaceutical corporation, for pracinostat in acute myeloid leukemia, myelodysplastic syndrome and other potential indications (the “Helsinn License Agreement”). As of June 30, 2021, our performance obligations related to the Helsinn License Agreement had been met, and the Helsinn License Agreement was terminated in November 2021.

Merger	3 Months Ended
Mar. 31, 2023
Merger	2. Merger On February 22, 2023, we, MEI Pharma, Inc., a Delaware corporation, or MEI, and Meadow Merger Sub, Inc., a Delaware corporation and a wholly-owned subsidiary of MEI, or the Merger Sub, entered into an Agreement and Plan of Merger, or the Merger Agreement, pursuant to which, among other matters, and subject to the satisfaction or waiver of the conditions set forth in the Merger Agreement, Merger Sub will merge with and into Infinity, with Infinity continuing as a wholly-owned subsidiary of MEI and the surviving corporation of the merger, which transaction is referred to herein as the Merger. If the Merger is completed, the combined company will combine the expertise and resources of MEI and Infinity to advance a pipeline of three clinical-stage oncology drug candidates. The Merger is expected to close in mid-2023, subject to the receipt of certain approvals by the stockholders of Infinity and MEI, as well as other customary closing conditions, including the effectiveness of a registration statement on Form S-4, which was filed with the U.S. Securities and Exchange Commission, or SEC, by MEI on April 27, 2023. We expect to devote significant time and resources to the completion of the Merger. However, there can be no assurances that such activities will result in the completion of the Merger. Further, the completion of the Merger may ultimately not deliver the anticipated benefits or enhance shareholder value. If the Merger is not completed, we will consider alternative courses of action as described further in Note 3.

Merger

3 Months Ended

Mar. 31, 2023

Merger

2. Merger

On February 22, 2023, we, MEI Pharma, Inc., a Delaware corporation, or MEI, and Meadow Merger Sub, Inc., a Delaware corporation and a wholly-owned subsidiary of MEI, or the Merger Sub, entered into an Agreement and Plan of Merger, or the Merger Agreement, pursuant to which, among other matters, and subject to the satisfaction or waiver of the conditions set forth in the Merger Agreement, Merger Sub will merge with and into Infinity, with Infinity continuing as a wholly-owned subsidiary of MEI and the surviving corporation of the merger, which transaction is referred to herein as the Merger. If the Merger is completed, the combined company will combine the expertise and resources of MEI and Infinity to advance a pipeline of three clinical-stage oncology drug candidates.

The Merger is expected to close in

mid-2023,

subject to the receipt of certain approvals by the stockholders of Infinity and MEI, as well as other customary closing conditions, including the effectiveness of a registration statement on Form

S-4,

which was filed with the U.S. Securities and Exchange Commission, or SEC, by MEI on April 27, 2023. We expect to devote significant time and resources to the completion of the Merger. However, there can be no assurances that such activities will result in the completion of the Merger. Further, the completion of the Merger may ultimately not deliver the anticipated benefits or enhance shareholder value. If the Merger is not completed, we will consider alternative courses of action as described further in Note 3.

Share-based Compensation

3 Months Ended

9 Months Ended

12 Months Ended

Mar. 31, 2023

Dec. 31, 2022

Jun. 30, 2022

Share-Based Compensation

Note 10. Share-based Compensation

time-to-time,

under

which

1,450,740

shares of common stock are authorized for issuance. The Omnibus Plan provides for the grant of options and/or other stock-based or stock-denominated awards to our

non-employee

directors, officers, and employees. In January 2023, our stockholders approved the increase of

400,000

additional shares available for future grant under the Omnibus Plan. As of March 31, 2023, there were

583,468

shares available for future grant under the Omnibus Plan.

In May 2021, we adopted the 2021 Inducement Plan (“Inducement Plan”), under which

125,000

shares of common stock are authorized for issuance. The Inducement Plan is intended to assist us in attracting and retaining selected individuals to serve as employees who are expected to contribute to our success, by providing an inducement for such individuals to enter into employment with us, and to achieve long-term objectives that will benefit our stockholders. As of March 31, 2023, there were 25,185 shares available for future grant under the Inducement Plan.

Total share-based compensation expense for all stock awards consisted of the following for the periods presented (in thousands):


	Three Months Ended March 31,				Nine Months Ended March 31,
	2023		2022		2023		2022

Research and development	$	374	$	1,118	$	1,224	$	2,398
General and administrative		544		1,719		2,066		5,302

Total share-based compensation expense	$	918	$	2,837	$	3,290	$	7,700

Stock Options

Stock options granted to employees vest

% one year from the date of grant and ratably each month thereafter for a period of

months and expire ten years from the date of grant.

Stock options granted to directors vest ratably each month for a period of

months from the date of grant and expire

ten years

from the date of grant. Of the total options outstanding of

1,252,931

of March 31, 2023

1,153,116

were granted under the Omnibus Plan and

99,815

were granted under the Inducement Plan.

A summary of our stock option activity and related data follows:


	Number of Options			Weighted- Average Exercise Price		Weighted Average Remaining Contractual Term (in years)		Aggregate Intrinsic Value
Outstanding at June 30, 2022		996,700		$	57.00
Granted		462,201			10.66
Expired		(7,834	)		52.62
Forfeited/Cancelled		(198,136	)		40.37

Outstanding at March 31, 2023		1,252,931			42.56		7.5	$	—

Vested and exercisable at March 31, 2023		664,330			56.70		6.2	$	—

As of March 31, 2023, the aggregate intrinsic value of outstanding options was calculated as the difference between the exercise price of the underlying options and the closing price of our common stock of

4.58

on that date.

Unrecognized compensation expense related to

non-vested

stock options totaled $

3.9

million as of March 31, 2023. Such compensation expense is expected to be recognized over a weighted average period

1.5

years. As of March 31, 2023, we expect all options to vest.

We use the Black-Scholes valuation model to estimate the grant date fair value of stock options. To calculate these fair values, the following weighted average assumptions were used for the periods presented:


	Nine Months Ended March 31,
	2023			2022

Risk-free interest rate		2.9	%		1.2	%
Expected life (years)		6.0			6.0
Expected volatility		84.1	%		68.8	%
Dividend yield		0.0	%		0.0	%
Weighted average grant date fair value	$	7.71		$	33.00

Restricted Stock Units

A summary of our RSU activity and related data for the nine months ended March 31, 2023 was as follows:


	Number of RSUs			Weighted Average Grant Date Fair Value
Non-vested at June 30, 2022		9,220		$	69.80
Vested		(9,220	)	$	69.80

Non-vested at March 31, 2023		—		$	—

Note 9. Share-Based Compensation

We use equity-based compensation programs to provide long-term performance incentives for our employees. These incentives consist primarily of stock options and RSUs. In December 2008, we adopted the MEI Pharma, Inc. 2008 Stock Omnibus Equity Compensation Plan (the “Omnibus Plan”), as amended and restated from time to time, under which 1,450,740 shares of common stock are authorized for issuance. The Omnibus Plan provides for the grant of options and/or other stock-based or stock-denominated awards to our

non-employee

directors, officers, employees and advisors. As of June 30, 2022, there were 457,733 shares available for future grant under the Omnibus Plan.

In May 2021, we adopted the 2021 Inducement Plan (“Inducement Plan”), under which 125,000 shares of common stock are authorized for issuance. The Inducement Plan is intended to assist us in attracting and retaining selected individuals to serve as employees who are expected to contribute to our success, by providing an inducement for such individuals to enter into employment with us, and to achieve long-term objectives that will benefit stockholders of the Company. As of June 30, 2022, there were 7,150 shares available for future grant under the Inducement Plan.

Total share-based compensation expense for all stock awards consists of the following, in thousands:


	Years Ended June 30,
	2022		2021		2020
Research and development	$	2,610	$	4,144	$	2,777
General and administrative		5,740		6,101		4,024

Total share-based compensation	$	8,350	$	10,245	$	6,801

Stock Options

Stock options granted to employees vest 25% one year from the date of grant and ratably each month thereafter for a period of 36 months and expire ten years from the date of grant. Stock options granted to directors vest ratably each month for a period of 12 months from the date of grant and expire ten years from the date of grant. As of June 30, 2022, there were a total of 996,700 options outstanding. Of the total outstanding options, 878,850 were granted under the Omnibus Plan and 117,850 were granted under the Inducement Plan.

A summary of our stock option activity and related data follows:


	Number of Options			Weighted-Average Exercise Price		Weighted-Average Remaining Contractual Term (in years)		Aggregate Intrinsic Value
Outstanding at June 30, 2021		833,427		$	60.20
Granted		356,237		$	51.40
Exercised		(17,428	)	$	32.80
Forfeited		(175,536	)	$	63.00

Outstanding at June 30, 2022		996,700		$	57.00		7.4	$	50,600

Vested and exercisable at June 30, 2022		542,232		$	59.00		6.2	$	—

As of June 30, 2022, the aggregate intrinsic value of outstanding options is calculated as the difference between the exercise price of the underlying options and the closing price of our common stock of $12.20 on that date. The total fair value of options that vested during the years ended June 30, 2022, 2021 and 2020 was $9.0 million, $6.4 million and $5.4 million, respectively.

Unrecognized compensation expense related to

non-vested

stock options totaled $6.6 million as of June 30, 2022. Such compensation expense is expected to be recognized over a weighted-average period of 1.7 years. As of June 30, 2022, we expect all outstanding options to vest.

We use a Black-Scholes valuation model to estimate the grant date fair value of stock options. To calculate these fair values, the following weighted-average assumptions were used:


	Years Ended June 30,
	2022			2021			2020
Risk-free interest rate		1.3	%		0.5	%		1.7	%
Expected life (years)		6.0			6.0			6.0
Expected volatility		69.6	%		80.1	%		74.1	%
Dividend yield		0.0	%		0.0	%		0.0	%
Weighted-average grant date fair value	$	31.40		$	46.00		$	32.80

Restricted Stock Units

A summary of our RSU activity and related data follows:


	Number of RSUs			Weighted-Average Grant Date Fair Value
Non-vested at June 30, 2021		20,033		$	69.80
Vested		(6,500	)	$	69.80
Forfeited		(4,313	)	$	69.80

Non-vested at June 30, 2022		9,220		$	69.80

Each RSU represents the contingent right to receive one share of our common stock. Under the terms of the Omnibus Plan, each of the RSUs is calculated as 1.25 shares of common stock for purposes of determining the number of shares available for future grant. As of June 30, 2022, unrecognized compensation expense related to the unvested portion of our RSUs was

de minimis.

Share-Based Compensation

5. Stock-Based Compensation

Total stock-based compensation expense related to all equity awards for the three months ended March 31, 2023 and 2022 was composed of the following:


	Three Months Ended March 31,
	2023		2022
	(in thousands)
Research and development	$	403	$	275
General and administrative		1,371		592

Total stock-based compensation expense	$	1,774	$	867

As of March 31, 2023, we had approximately $6.0 million of total unrecognized compensation cost related to unvested common stock options, restricted stock units and awards under our 2013 Employee Stock Purchase Plan, which is expected to be recognized over a weighted-average period of 1.9 years.

During the three months ended March 31, 2023, our board of directors approved a strategic restructuring of the Company. As a result of the restructuring activities, the vesting conditions for several outstanding equity awards were accelerated, which resulted in additional stock-based compensation expense being recognized during the period. For the three months ended March 31, 2023, the stock-based compensation expense above includes $0.8 million of expense directly related to the restructuring activities. See Note 13 for further discussion of the strategic restructuring.

Stock Options

No options were granted during the three months ended March 31, 2023. During the three months ended March 31, 2022, we granted options to purchase 2,082,324 shares of our common stock at a weighted average fair value of $1.26 per share and a weighted average exercise price of $1.54 per share. For the three months ended March 31, 2023 and 2022, the fair values were estimated using the Black-Scholes valuation model using the following weighted-average assumptions:


	Three Months Ended March 31,
	2023		2022
Risk-free interest rate		—		1.6%
Expected annual dividend yield		—		—
Expected stock price volatility		—		106.2%
Expected term of options		—		6.0 years

Restricted Stock Units

From time to time, we grant restricted stock units (“RSUs”) to employees. RSUs awarded to employees contain a mix of service and performance conditions. Stock-based compensation expense related to RSUs with service conditions is recognized on a straight-line basis over the requisite service period of the award, which is generally equal to the vesting period of the award. Stock-based compensation expense related to RSUs with performance conditions is recognized when it is deemed probable that the performance condition will be met. The fair value of RSUs awarded is estimated to be equal to the closing price of our common stock on the date of grant. No RSUs were granted during the three months ended March 31, 2023 and 2022.

During the three months ended March 31, 2023, we recognized $0.5 million in stock-based compensation expense related to RSUs with performance conditions. During the three months ended March 31, 2022, we did not recognize any stock-based compensation expense related to RSUs with performance conditions.

3. Stock-Based Compensation

Under each of the stock incentive plans described below, stock option awards made to new employees upon commencement of employment typically provide for vesting of 25% of the shares underlying the award at the end of the first year of service with the remaining 75% of the shares underlying the award vesting ratably on a monthly basis over the following three-year period subject to continued service. Annual grants to existing employees typically provide for ratable vesting over specified periods determined by the board of directors. In addition, under each plan, all options granted expire no later than ten years after the date of grant.

2019 Equity Incentive Plan

Our 2019 Equity Incentive Plan, or the 2019 Plan, was approved by our stockholders in June 2019. The 2019 Plan provides for the grant of incentive stock options intended to qualify under Section 422 of the Internal

Revenue Code of 1986, as amended, or IRC, as well as nonstatutory stock options, stock appreciation rights, restricted stock, restricted stock units and other stock-based and cash-based awards. Up to 12,531,009 shares of our common stock may be issued pursuant to awards granted under the 2019 Plan, plus an additional amount of our common stock underlying awards issued under the 2010 Stock Incentive Plan, or the 2010 Plan, that expire or are canceled without the holders receiving any shares under those awards. As of December 31, 2022, an aggregate of 7,744,676 shares of our common stock were reserved for issuance upon the vesting or exercise of outstanding awards, and up to 2,564,077 shares of common stock may be issued pursuant to awards granted under the 2019 Plan.

2010 Stock Incentive Plan

The 2010 Plan provided for the grant of incentive stock options under the IRC, as well as nonstatutory stock options, stock appreciation rights, restricted stock, restricted stock units and other stock-based and cash-based awards. As of December 31, 2022, an aggregate of 6,309,021 shares of our common stock were reserved for issuance upon the exercise of outstanding awards granted under the 2010 Plan. The 2010 Plan was terminated upon approval of the 2019 Plan; therefore, no further grants may be made under the 2010 Plan.

2013 Employee Stock Purchase Plan

Our ESPP permits eligible employees to purchase shares of our common stock at a discount and consists of consecutive, overlapping

24-month

offering periods, each consisting of four

six-month

purchase periods. On the first day of each offering period, each employee who is enrolled in the ESPP will automatically receive an option to purchase up to a whole number of shares of our common stock. The purchase price of each of the shares purchased, in a given purchase period, will be equal to 85% of the closing price of a share of our common stock, on the first day of the offering period or the last day of the purchase period, whichever is lower. During the year ended December 31, 2022, 111,155 shares of common stock were purchased for total proceeds of approximately $0.1 million. During the year ended December 31, 2021, 57,561 shares of common stock were purchased for total proceeds of approximately $0.1 million.

Compensation Expense

Total stock-based compensation expense related to all equity awards was comprised of the following:


	Year Ended December 31,
	2022		2021
	(in thousands)
Research and development	$	1,291	$	830
General and administrative		2,330		1,865

Total stock-based compensation expense	$	3,621	$	2,695

As of December 31, 2022, we had approximately $8.1 million of total unrecognized compensation cost related to unvested common stock options, restricted stock units and awards under our ESPP, which are expected to be recognized over a weighted-average period of two years.

Stock Options

We estimate the fair value of stock options at the date of grant using the Black-Scholes valuation model with the following weighted-average assumptions:


	December 31,
	2022			2021
Risk-free interest rate		2.1	%		0.9	%
Expected annual dividend yield		—			—
Expected stock price volatility		105.0	%		106.3	%
Expected term of options		5.9 years			5.9 years

The valuation assumptions were determined as follows:

•

Risk-free interest rate:

The yield on

zero-coupon

U.S. Treasury securities for a period that was commensurate with the expected term of the awards.

•

Expected annual dividend yield:

The estimate for annual dividends was zero because we have not historically paid a dividend and do not intend to do so in the foreseeable future.

•

Expected stock price volatility:

We determined the expected volatility by using our available implied and historical price information.

•

Expected term of options:

The expected term of the awards represents the period of time that the awards were expected to be outstanding. We use the simplified method to estimate expected term as we do not have sufficient historical exercise data to provide a reasonable basis on which to estimate the expected term. Under this method, the expected life equals the average of the vesting term and the original contractual term of the option.

A summary of our stock option activity for the year ended December 31, 2022 is as follows:


	Stock Options			Weighted- Average Exercise Price per Share		Weighted- Average Remaining Contractual Life (years)		Aggregate Intrinsic Value (in millions)
Outstanding at January 1, 2022		12,689,439		$	3.53
Granted		2,886,324			1.36
Exercised		(17,708	)		0.83
Forfeited		(238,129	)		1.46
Expired		(656,229	)		8.30

Outstanding at December 31, 2022		14,663,697		$	2.93		6.3	$	—

Exercisable at December 31, 2022		10,903,188		$	3.33		5.6	$	—

The weighted-average fair value per share of options granted during the years ended December 31, 2022 and 2021 was $1.10 and $2.69, respectively.

The aggregate intrinsic value of options outstanding at December 31, 2022 was calculated based on the positive difference, if any, between the closing fair market value of our common stock on December 31, 2022 and the exercise price of the underlying options.

The aggregate intrinsic value of options exercised during the year ended December 31, 2022 was nominal. The aggregate intrinsic value of options exercised during the year ended December 31, 2021 was $0.8 million.

No related income tax benefits were recorded during the years ended December 31, 2022 or 2021.

We settle employee stock option exercises with newly issued shares of our common stock.

Restricted Stock Units

A summary of our RSU activity for the year ended December 31, 2022 is as follows:


	Restricted Stock Units			Weighted-Average Grant Date Fair Value per Unit
Outstanding, non-vested at January 1, 2022		50,000		$	2.93
Granted		2,950,483			1.08
Vested		(50,000	)		2.93
Forfeited		(10,667	)		1.08

Outstanding, non-vested at December 31, 2022		2,939,816		$	1.08

The total fair value of RSUs vested during the year ended December 31, 2022 was nominal. No RSUs vested during the year ended December 31, 2021.

Schedule of Net Income (Loss) Per Share, Basic and Diluted (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended		12 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Mar. 31, 2023	Mar. 31, 2022	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2020
Net loss - basic	$ (15,438)	$ (8,725)	$ (21,809)	$ (38,391)	$ (54,454)	$ (41,314)	$ (47,173)
Change in fair value of warrant liability	0	0	0	(8,046)	(8,046)	(27,394)	0
Net loss - diluted	$ (15,438)	$ (8,725)	$ (21,809)	$ (46,437)	$ (62,500)	$ (68,708)	$ (47,173)

Amount, after deduction of tax, noncontrolling interests, dividends on preferred stock and participating securities; of income (loss) available to common shareholders.

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Schedule of Future Minimum Lease Payments

Amount, after deduction of tax, noncontrolling interests, dividends on preferred stock and participating securities, and addition from assumption of issuance of common shares for dilutive potential common shares; of income (loss) available to common shareholders.

+ References + Details

Commitments and Contingencies (Tables)

9 Months Ended

12 Months Ended

Mar. 31, 2023

Dec. 31, 2022

Jun. 30, 2022

The following is a schedule of the future minimum lease payments under the Lease Agreements, reconciled to the operating lease liability, as of March 31, 2023 (in thousands):


	March 31, 2023

Remainder of fiscal year ending June 30, 2023	$	566
Years ending June 30,
2024		2,335
2025		1,913
2026		2,477
2027		2,551
2028		2,715
Thereafter		4,386

Total lease payments		16,943
Less: Present value discount		(3,891	)

Total operating lease liability	$	13,052

Balance Sheet Classification – Operating Leases
Operating lease liability	$	1,385
Operating lease liability, long-term		11,667

Total operating lease liability	$	13,052

Other Balance Sheet Information – Operating Leases
Weighted average remaining lease term (in years)		6.7
Weighted average discount rate		7.50	%

The following is a schedule of the future minimum rental payments for our operating leases, reconciled to the lease liability as of June 30, 2022 (in thousands):


	June 30, 2022
Years ending June 30,
2023	$	1,565
2024		1,612
2025		1,168
2026		1,710
2027		1,761
Thereafter		5,090

Total lease payments		12,906
Less: Present value discount		(3,264	)

Total operating lease liability	$	9,642

Balance Sheet Classification—Operating Leases
Operating lease liability	$	871
Operating lease liability, long-term		8,771

Total operating lease liability	$	9,642

Other Balance Sheet Information—Operating Leases
Weighted average remaining lease term (in years)		7.4
Weighted average discount rate		7.50	%

Schedule of Future Minimum Lease Payments

Summary of Leases

The following is a summary of our current lease included in the respective balance sheet classifications:


	December 31,
	2022		2021
	(in thousands)
Assets
Operating lease right-of-use assets	$	697	$	1,064

Liabilities
Accrued expenses and other current liabilities	$	593	$	519
Operating lease liability		324		917

Total lease liabilities	$	917	$	1,436

As of December 31, 2022, future minimum lease payments of our operating lease liabilities are as follows:


	Operating Leases
	(in thousands)
2023	$	658
2024		334

Total future minimum lease payments		992
Less: imputed interest		(75	)

Total lease liability	$	917

Organization	3 Months Ended	12 Months Ended
Organization	Mar. 31, 2023	Dec. 31, 2022
Infinity Pharmaceuticals Inc [Member]
Organization	1. Organization Infinity Pharmaceuticals, Inc., is a clinical-stage innovative biopharmaceutical company dedicated to developing novel medicines for people with cancer. As used throughout these unaudited, condensed consolidated financial statements, the terms “Infinity,” “we,” “us,” and “our” refer to the business of Infinity Pharmaceuticals, Inc., and its wholly-owned subsidiaries.	1. Organization Infinity Pharmaceuticals, Inc., is a clinical-stage innovative biopharmaceutical company dedicated to developing novel medicines for people with cancer. As used throughout these audited, consolidated financial statements, the terms “Infinity,” “we,” “us,” and “our” refer to the business of Infinity Pharmaceuticals, Inc., and its wholly owned subsidiaries. On February 22, 2023, we, MEI Pharma, Inc., a Delaware corporation, or MEI, and Merger Sub, Inc., a Delaware corporation and a wholly owned subsidiary of MEI, or the Merger Sub, entered into an Agreement and Plan of Merger, or the Merger Agreement, pursuant to which, among other matters, and subject to the satisfaction or waiver of the conditions set forth in the Merger Agreement, Merger Sub will merge with and into Infinity, with Infinity continuing as a wholly owned subsidiary of MEI and the surviving corporation of the merger, which transaction is referred to herein as the Merger. If the Merger is completed, the combined company will combine the expertise and resources of MEI and Infinity to advance a pipeline of three clinical-stage oncology drug candidates.

Property and Equipment - Additional Information (Detail) - USD ($)	12 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2020
Property, Plant and Equipment [Line Items]
Depreciation expense	$ 326,000	$ 285,000	$ 75,000

Stockholders' (Deficit) Equity - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Millions				3 Months Ended		12 Months Ended
	Jul. 27, 2021	Feb. 11, 2021	Feb. 24, 2014	Mar. 31, 2023	Mar. 31, 2022	Dec. 31, 2022	Dec. 31, 2021
Infinity Pharmaceuticals Inc [Member]
Subsidiary, Sale of Stock [Line Items]
Sales agreement, commission percentage	3.00%
Common stock warrants issued (in shares)			1,000,000
Common stock warrants issued, exercise price			$ 13.83
Potential percentage of ownership interest			9.985%
Common Stock Sales Facility [Member]
Subsidiary, Sale of Stock [Line Items]
Sales agreement, increase in aggregate offering price	$ 75.0
Sales agreement	$ 95.0
Sales agreement, expired without sale						$ 11.8
Amount available for future sales				$ 75.0
Sales agreement, commission percentage	3.00%
Number of shares sold in transaction
Common Stock Sales Facility [Member] \| Infinity Pharmaceuticals Inc [Member]
Subsidiary, Sale of Stock [Line Items]
Sales agreement, increase in aggregate offering price	$ 75.0
Sales agreement	$ 95.0
Sales agreement, expired without sale						11.8
Amount available for future sales						$ 75.0
Number of shares sold in transaction							89,520
Sale of stock, price per share							$ 3.83
Sale of stock, consideration received on transaction							$ 0.3
Public Offering [Member] \| Infinity Pharmaceuticals Inc [Member]
Subsidiary, Sale of Stock [Line Items]
Number of shares sold in transaction		24,150,000
Sale of stock, price per share		$ 3.8
Sale of stock, consideration received on transaction		$ 85.8
Sale of stock, over-allotment option, percentage		15.00%
Gross proceeds from shares sold		$ 91.8
Over-Allotment Option [Member] \| Infinity Pharmaceuticals Inc [Member]
Subsidiary, Sale of Stock [Line Items]
Number of shares sold in transaction		3,150,000

Property and Equipment (Tables)

12 Months Ended

Dec. 31, 2022

Jun. 30, 2022

Schedule of Property and Equipment

Property and equipment consisted of the following, in thousands:


	June 30,
	2022			2021
Furniture and equipment	$	1,254		$	896
Leasehold improvements		1,054			941

		2,308			1,837
Less: accumulated depreciation		(648	)		(330	)

Property and equipment, net	$	1,660		$	1,507

Schedule of Property and Equipment

Property and equipment consist of the following:


	December 31,
	2022			2021
	(in thousands)
Computer equipment and software	$	1,921		$	1,904
Furniture and fixtures		446			446
Leasehold improvements		1,743			1,743

		4,110			4,093
Less accumulated depreciation		(3,310	)		(2,852	)

	$	800		$	1,241

Deferred Tax Liabilities and Assets (Detail) - USD ($) $ in Thousands	Dec. 31, 2022	Jun. 30, 2022	Dec. 31, 2021	Jun. 30, 2021
Deferred revenue		$ 20,362		$ 16,637
Fixed and intangible assets		13,283		15,924
Share-based payments		4,869		4,182
Tax losses carried forward		29,581		16,104
Compensation accruals		927		727
Consultant and other accruals		25		22
Right-of-use assets		(1,932)		(1,633)
Lease liabilities		2,057		1,742
Charitable contributions		7		1
Total deferred tax assets		69,179		53,706
Valuation allowance for deferred tax assets		(69,179)		(53,706)
Net deferred tax assets and liabilities		$ 0		$ 0
Infinity Pharmaceuticals Inc [Member]
Share-based payments	$ 5,183		$ 5,109
Tax losses carried forward	170,880		164,969
Valuation allowance for deferred tax assets	(256,411)		(244,365)
Tax credit carryforwards	45,270		44,302
Intangible assets	13,212		15,151
Capitalized research and development costs	8,104		0
Accrued expenses	655		1,255
Sale of future royalties	13,212		13,557
Other	(105)		22
Net deferred tax assets (liabilities)	$ 0		$ 0

Fair Value Measurements

3 Months Ended

9 Months Ended

12 Months Ended

Mar. 31, 2023

Dec. 31, 2022

Jun. 30, 2022

Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]

Note 2. Fair Value Measurements

The carrying amounts of financial instruments such as cash equivalents, short-term investments and accounts payable approximate the related fair values due to the short-term maturities of these instruments. We invest our excess cash in financial instruments which are readily convertible into cash, such as money market funds and U.S. government securities. Cash equivalents and short-term investments are measured at fair value on a recurring basis and are classified as Level 1 as defined by the fair value hierarchy.

In May 2018, we issued warrants in connection with our private placement of shares of common stock. Pursuant to the terms of the warrants, we could be required to settle the warrants in cash in the event of an acquisition of us and, as a result, the warrants are required to be measured at fair value and reported as a liability in the Condensed Consolidated Balance Sheet. We recorded the fair value of the warrants upon issuance using the Black-Scholes valuation model and are required to revalue the warrants at each reporting date with any changes in fair value recorded on our Condensed Consolidated Statement of Operations. The valuation of the warrants is considered under Level 3 of the fair value hierarchy due to the need to use assumptions in the valuation that are both significant to the fair value measurement and unobservable. Inputs used to determine estimated fair value of the warrant liabilities include the estimated fair value of the underlying stock at the valuation date, the estimated term of the warrants, risk-free interest rates, expected dividends and the expected volatility of the underlying stock. The significant unobservable inputs used in the fair value measurement of the warrant liabilities were the volatility rate and the estimated term of the warrants. Generally, increases (decreases) in the fair value of the underlying stock and estimated term would result in a directionally similar impact to the fair value measurement. The change in the fair value of the Level 3 warrant liability is reflected in the Condensed Consolidated Statements of Operations for the three and nine months ended March 31, 2023 and 2022, respectively.

To calculate the fair value of the warrant liability, the following assumptions were used for the periods

presented:


	March 31, 202 3			June 30, 2022
Risk-free interest rate		4.6	%		2.8	%
Expected life (years)		0.1			0.9
Expected volatility		91.5	%		139.4	%
Dividend yield		0.0	%		0.0	%
Black-Scholes Fair Value	$	—		$	0.10

The following table sets forth a summary of changes in the estimated fair value of our Level 3 warrant liability for the nine months ended March 31, 2023 and 2022 (in thousands):


	Fair Value of Warrants Using Significant Unobservable Inputs (Level 3)
	202 3			202 2
Balance at July 1,	$	1,603		$	22,355
Change in estimated fair value of liability classified warrants		(1,603	)		(20,819	)

Balance at March 31,	$	—		$	1,536

Note 5. Fair Value Measurements

The carrying amounts of financial instruments such as cash equivalents, short-term investments and accounts payable approximate the related fair values due to the short-term maturities of these instruments. We invest our excess cash in financial instruments which are readily convertible into cash, such as money market funds and U.S. government securities. Cash equivalents and short-term investments are classified as Level 1 as defined by the fair value hierarchy.

In May 2018, we issued warrants in connection with our private placement of shares of common stock. Pursuant to the terms of the warrants, we could be required to settle the warrants in cash in the event of an acquisition of the Company and, as a result, the warrants are required to be measured at fair value and reported as a liability in the Balance Sheets. We recorded the fair value of the warrants upon issuance using the Black-Scholes valuation model and are required to revalue the warrants at each reporting date with any changes in fair value recorded on our Statements of Operations. The valuation of the warrants is considered under Level 3 of the fair value hierarchy due to the need to use assumptions in the valuation that are both significant to the fair value measurement and unobservable. Inputs used to determine the estimated fair value of the warrant liabilities include the estimated fair value of the underlying stock at the valuation date, the estimated term of the warrants, risk-free interest rates, expected dividends and the expected volatility of the underlying stock. The significant unobservable inputs used in the fair value measurement of the warrant liabilities were the volatility rate and the estimated term of the warrants. Generally, increases or decreases in the fair value of the underlying stock and estimated term would result in a directionally similar impact to the fair value measurement. The changes in the fair value of the Level 3 warrant liability are reflected on the Statements of Operations for the years ended June 30, 2022, 2021 and 2020.

To calculate the fair value of the warrant liability, the following assumptions were used for the periods presented:


	June 30,
	2022			2021
Risk-free interest rate		2.8	%		0.2	%
Expected life (years)		0.9			1.9
Expected volatility		139.4	%		88.5	%
Dividend yield		0.0	%		0.0	%
Black-Scholes fair value	$	2.00		$	27.80

The following table sets forth a summary of changes in the estimated fair value of our Level 3 warrant liability for the years ended June 30, 2022 and 2021 (in thousands):


	Fair Value of Warrants Using Significant Unobservable Inputs (Level 3)
	2022			2021
Balance at July 1,	$	22,355		$	40,483
Reclassification of warrant liability to equity upon exercise of warrants		—			(6	)
Change in estimated fair value of liability classified warrants		(20,752	)		(18,122	)

Balance at June 30,	$	1,603		$	22,355

Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]

7. Fair Value

We measure certain financial instruments at fair value on a recurring basis. Our assets which are required to be measured on a recurring basis consist of cash and cash equivalents totaling $25.7 million and $38.3 million as of March 31, 2023 and December 31, 2022, respectively. Our liabilities which are required to be measured on a recurring basis consist of a warrant liability in the amount of $0.2 million as of December 31, 2022. We did not have any liabilities that are required to be measured on a recurring basis as of March 31, 2023.

Cash and cash equivalents, which are measured using Level 1 inputs, consist of highly liquid deposit accounts and money market funds that are intended to consistently transact at a target net asset value of $1.00. Accordingly, the carrying amounts reflected in the condensed consolidated balance sheets for cash and cash equivalents approximate their fair value.

Warrant liability relates to potential future warrants that may be issued. The fair value of the warrant liability on the date of the commitment and on each

re-measurement

date for those warrants classified as liabilities was estimated using the Monte Carlo simulation model, which involves a series of simulated future stock price paths over the remaining life of the commitment. The fair value is estimated by taking the average of the fair values under each of many Monte Carlo simulations. The fair value estimate is affected by our stock price, as well as estimated future financing needs, including timing and sources of the financing and subjective variables including expected stock price volatility over the remaining life of the commitment and risk-free interest rate. Due to the nature of these inputs, the valuation of the warrants is considered a Level 3 measurement. The fair value of the warrant liability as of December 31, 2022 has been included in accrued expenses and other current liabilities on our condensed consolidated balance sheet. Our obligation to issue the warrants described above expired on January 8, 2023 and therefore, no warrant liability exists as of March 31, 2023. See Note 10 for further discussion of the accounting for the warrants.

There have been no changes to our valuation methods of

available-for-sale

securities during the three months ended March 31, 2023. We

had no available-for-sale

securities that were classified as Level 3 at any point during the three months ended March 31, 2023 or during the year ended December 31, 2022.

The carrying amounts reflected in the condensed consolidated balance sheets for prepaid expenses and other current assets, other assets, accounts payable and accrued expenses and other current liabilities approximate their fair value due to their short-term maturities.

5. Fair Value

We measure certain financial instruments at fair value on a recurring basis. The Company’s assets which are required to be measured on a recurring basis consist of cash and cash equivalents totaling $38.3 million and $80.7 million as of December 31, 2022 and 2021, respectively. The Company’s liabilities which are required to be measured on a recurring basis consist of a warrant liability in the amount of $0.2 million as of December 31, 2022 and 2021.

Warrant liability relates to potential future warrants that may be issued. The fair value of the warrant liability on the date of the commitment and on each

re-measurement

The fair value of the warrant liability as of December 31, 2022 has been included in accrued expenses and other current liabilities on our consolidated balance sheet. The fair value of the warrant liability as of December 31, 2021 has been included in other liabilities on our consolidated balance sheet. See Note 9 for further discussions of the accounting for the warrants.

There have been no changes to our valuation methods during the year ended December 31, 2022. We had no

available-for-sale

securities that were classified as Level 3 at any point during the year ended December 31, 2022.

The carrying amounts reflected in the consolidated balance sheets for prepaid expenses and other current assets, other assets, accounts payable and accrued expenses and other current liabilities approximate their fair value due to their short-term maturities.

Schedule of Accrued Liabilities [Table Text Block]

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

Accrued Expenses and Other Current Liabilities (Tables)

3 Months Ended

12 Months Ended

Mar. 31, 2023

Dec. 31, 2022

Jun. 30, 2022

Accrued liabilities consisted of the following, in thousands:


	June 30,
	2022		2021
Accrued pre-clinical and clinical trial expenses	$	5,264	$	4,004
Accrued compensation and benefits		4,346		3,513
Accrued legal and professional services expenses		1,036		813
Other		174		72

Total accrued liabilities	$	10,820	$	8,402

Schedule of Accrued Liabilities [Table Text Block]

Accrued expenses and other current liabilities consisted of the following:


	March 31, 2023		December 31, 2022
	(in thousands)
Accrued clinical	$	3,881	$	4,290
Accrued compensation and benefits		1,204		605
Accrued restructuring costs		841		—
Accrued development		407		335
Accrued consulting		321		742
Accrued professional services		288		785
Liability related to sale of future royalties, net, current portion		1,307		1,218
Operating lease liability, current portion		613		593
Other		492		655

Total accrued expenses and other current liabilities	$	9,354	$	9,223

Accrued expenses and other current liabilities consisted of the following:


	December 31,
	2022		2021
	(in thousands)
Accrued clinical	$	4,290	$	4,998
Accrued professional services		785		88
Accrued consulting		742		475
Accrued compensation and benefits		605		2,835
Accrued development		335		755
Liability related to sale of future royalties, net, current portion		1,218		897
Operating lease liability, current portion		593		519
Other		655		413

Total accrued expenses	$	9,223	$	10,980

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Parenthetical) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Dec. 31, 2021	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2020
Stock issuance cost	$ 3,672	$ 3,652	$ 64	$ 3,731

Fair Value Measurements (Tables)

9 Months Ended

12 Months Ended

Mar. 31, 2023

Jun. 30, 2022

Fair Value Disclosures [Abstract]

Schedule of Assumptions Used to Calculate Fair Value of Warrant Liability

To calculate the fair value of the warrant liability, the following assumptions were used for the periods

presented:


	March 31, 202 3			June 30, 2022
Risk-free interest rate		4.6	%		2.8	%
Expected life (years)		0.1			0.9
Expected volatility		91.5	%		139.4	%
Dividend yield		0.0	%		0.0	%
Black-Scholes Fair Value	$	—		$	0.10

To calculate the fair value of the warrant liability, the following assumptions were used for the periods presented:


	June 30,
	2022			2021
Risk-free interest rate		2.8	%		0.2	%
Expected life (years)		0.9			1.9
Expected volatility		139.4	%		88.5	%
Dividend yield		0.0	%		0.0	%
Black-Scholes fair value	$	2.00		$	27.80

Schedule of Changes in Estimated Fair Value of Warrant Liability

The following table sets forth a summary of changes in the estimated fair value of our Level 3 warrant liability for the nine months ended March 31, 2023 and 2022 (in thousands):


	Fair Value of Warrants Using Significant Unobservable Inputs (Level 3)
	202 3			202 2
Balance at July 1,	$	1,603		$	22,355
Change in estimated fair value of liability classified warrants		(1,603	)		(20,819	)

Balance at March 31,	$	—		$	1,536

The following table sets forth a summary of changes in the estimated fair value of our Level 3 warrant liability for the years ended June 30, 2022 and 2021 (in thousands):


	Fair Value of Warrants Using Significant Unobservable Inputs (Level 3)
	2022			2021
Balance at July 1,	$	22,355		$	40,483
Reclassification of warrant liability to equity upon exercise of warrants		—			(6	)
Change in estimated fair value of liability classified warrants		(20,752	)		(18,122	)

Balance at June 30,	$	1,603		$	22,355

Segment Information	12 Months Ended
Segment Information	Jun. 30, 2022
Segment Information	Note 12. Segment Information We have one operating segment which is the development of pharmaceutical compounds. Al l of our assets and liabilities were located in the U.S. as of June 30, 2022 and 2021.

The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments.

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Subsequent Events - Additional Information (Detail) $ in Millions		3 Months Ended	6 Months Ended
	Feb. 22, 2023 USD ($) POSITION	Mar. 31, 2023 USD ($)	Dec. 31, 2022
Subsequent Event [Line Items]
Headcount reduction percentage			27.00%
Infinity Pharmaceuticals Inc [Member]
Subsequent Event [Line Items]
Number of positions overall headcount \| POSITION	4
Headcount reduction percentage	13.00%
General and administrative \| Forecast [Member] \| Infinity Pharmaceuticals Inc [Member]
Subsequent Event [Line Items]
Restructuring charges		$ 1.6
Research and Development \| Forecast [Member] \| Infinity Pharmaceuticals Inc [Member]
Subsequent Event [Line Items]
Restructuring charges		$ 0.1
Subsequent Event [Member] \| Infinity Pharmaceuticals Inc [Member]
Subsequent Event [Line Items]
Number of positions overall headcount \| POSITION	4
Headcount reduction percentage	13.00%
Restructuring costs, expected to be settled through future cash expenditures	$ 0.9

Property and Equipment

12 Months Ended

Dec. 31, 2022

Jun. 30, 2022

Note 6. Property and Equipment

Property and equipment consisted of the following, in thousands:


	June 30,
	2022			2021
Furniture and equipment	$	1,254		$	896
Leasehold improvements		1,054			941

		2,308			1,837
Less: accumulated depreciation		(648	)		(330	)

Property and equipment, net	$	1,660		$	1,507

Depreciation expense of property and equipment for the years ended June 30, 2022, 2021 and 2020 was approximately $326,000, $285,000 and $75,000, respectively.

7. Property and Equipment

Property and equipment consist of the following:


	December 31,
	2022			2021
	(in thousands)
Computer equipment and software	$	1,921		$	1,904
Furniture and fixtures		446			446
Leasehold improvements		1,743			1,743

		4,110			4,093
Less accumulated depreciation		(3,310	)		(2,852	)

	$	800		$	1,241

Subsequent Events

3 Months Ended

12 Months Ended

Mar. 31, 2023

Dec. 31, 2022

Subsequent Events [Text Block]

Subsequent Event [Line Items]

15. Subsequent Event

On May 3, 2023, a putative stockholder complaint was filed in the United States (U.S.) District Court for the Southern District of New York (S.D.N.Y.), captioned Childress v. Infinity Pharmaceuticals, Inc., et al. The

complaint names as defendants Infinity and each member of the board of directors, or the Board. The complaint alleges, among other things, that Infinity and each member of the Board violated federal securities laws and regulations through a registration statement intended to induce them to vote in favor of the transaction that purportedly omits material facts necessary to make the statements therein not false or misleading. The complaint seeks, among other relief, (i) injunctive relief preventing the consummation of the proposed transaction; (ii) rescission or rescissory damages in the event the proposed transaction is consummated; (iii) other damages purportedly incurred on account of defendants’ alleged misstatements or omissions; (iv) dissemination of an amendment to the registration statement that discloses certain information requested by the plaintiff; and (v) an award of plaintiff’s expenses and attorneys’ fees. We believe that the allegations asserted in the complaint are without merit. However, we cannot predict the outcome of this matter, nor can we estimate possible losses or a range of losses that may result from this matter.

15. Subsequent Events

On February 22, 2023, we, MEI Pharma, Inc., a Delaware corporation, or MEI, and Merger Sub, Inc., a Delaware corporation and a wholly owned subsidiary of MEI, or the Merger Sub, entered into an Agreement and Plan of Merger, or the Merger Agreement, pursuant to which, among other matters, and subject to the satisfaction or waiver of the conditions set forth in the Merger Agreement, Merger Sub will merge with and into Infinity, with Infinity continuing as a wholly owned subsidiary of MEI and the surviving corporation of the merger, which transaction is referred to herein as the Merger. If the Merger is completed, the combined company will combine the expertise and resources of MEI and Infinity to advance a pipeline of three clinical-stage oncology drug candidates.

We expect to devote significant time and resources to the completion of the Merger. However, there can be no assurances that such activities will result in the completion of the Merger. Further, the completion of the Merger may ultimately not deliver the anticipated benefits or enhance shareholder value. If the Merger is not completed, we will consider alternative courses of action. We consider one of the following courses of action to be the most likely alternatives if the Merger is not completed:

•

Pursue another strategic transaction

. We may resume the process of evaluating a potential strategic transaction, including the sale of the company or its assets. Based on our prior assessment, we do not expect that we would have the necessary time or financial resources to pursue another strategic transaction like the proposed Merger.

•

Wind down the company

. If the Merger does not close and we are unable to enter into another strategic transaction, our board of directors may conclude that it is in the best interest of stockholders to cease normal operations and wind down the company through bankruptcy or dissolution proceedings. In such case, there would be no assurances as to the amount or timing of available cash remaining, if any, to distribute to stockholders after paying our obligations and setting aside funds for reserves.

In conjunction with their approval of the Merger Agreement, our board of directors approved a strategic restructuring to preserve our resources. As a result, we have reduced our overall headcount by four positions, representing approximately 13% of our workforce at the time we entered into the Merger Agreement. We expect to incur approximately $1.6 million and $0.1 million in total restructuring charges in general and administrative expenses and research and development expenses, respectively in the first quarter of 2023. These charges primarily consist of severance payments, employee benefits and related taxes, and stock-based compensation. Of the aggregate restructuring costs, we expect approximately $0.9 million to be settled through future cash expenditures. We expect the workforce reduction will be substantially completed by March 31, 2023.

Net Loss Per Share

9 Months Ended

Mar. 31, 2023

Earnings Per Share [Abstract]

Net Loss Per Share

Note 6. Net Loss Per Share

Basic and diluted net loss per share are computed using the weighted average number of shares of common stock outstanding during the period, less any shares subject to repurchase or forfeiture. There were

shares of common stock subject to repurchase or forfeiture for the three and nine months ended March 31, 2023 and 2022. Diluted net loss per share is computed based on the sum of the weighted average number of common shares and potentially dilutive common shares outstanding during the period.

The following table presents the calculation of net loss used to calculate basic loss and diluted loss per share (in thousands):


	Three Months Ended March 31,						Nine Months Ended March 31,
	2023			2022			2023			2022
Net loss – basic	$	(15,438	)	$	(8,725	)	$	(21,809	)	$	(38,391	)
Change in fair value of warrant liability		—			—			—			(8,046	)

Net loss – diluted	$	(15,438	)	$	(8,725	)	$	(21,809	)	$	(46,437	)

Share used in calculating net loss per share was determined as follows (in thousands):


	Three Months Ended March 31,				Nine Months Ended March 31,
	2023		2022		2023		2022
Weighted average shares used in calculating basic net loss per share		6,663		6,653		6,663		6,080
Effect of potentially dilutive common shares from equity awards and liability-classified warrants		—		—		—		44

Weighted average shares used in calculating diluted net loss per share		6,663		6,653		6,663		6,124

Our potentially dilutive shares, which include outstanding stock options, restricted stock units and warrants, are considered to be common stock equivalents and are only included in the calculation of diluted net loss per share when their effect is dilutive.

The following table presents weighted average potentially dilutive shares that have been excluded from the calculation of net loss per share because of their anti-dilutive effect (in thousands):


	Three Months Ended March 31,				Nine Months Ended March 31,
	2023		2022		2023		2022
Stock options		1,258		1,020		1,340		1,029
Warrants		905		11		837		12
Restricted stock units		—		803		—		268

Total anti-dilutive shares		2,163		1,834		2,177		1,309

Reconciliation of Income Taxes Computed at U.S Federal Statutory Tax rates to Income Tax Expense (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Jun. 30, 2022	Dec. 31, 2021	Jun. 30, 2021	Jun. 30, 2020
Reconciliation Of Statutory Federal Tax Rate [Line Items]
Tax benefit at U.S. statutory rates		$ 11,435		$ 8,674	$ 9,906
State tax		191		(99)	9
Warrant liability costs		4,358		3,806	(4,803)
Equity compensation		(71)		(6)	(2)
Increase in valuation allowance		(15,473)		(10,536)	(4,473)
Other		(440)		(1,847)	(638)
Income tax expense		$ 0		$ (8)	$ (1)
Tax benefit (expense) at U.S. statutory rates		21.00%		21.00%	21.00%
State tax		0.00%		0.00%	0.00%
Warrant liability costs		8.00%		9.00%	(10.00%)
Equity compensation		0.00%		0.00%	0.00%
(Increase) decrease in valuation allowance		(28.00%)		(26.00%)	(10.00%)
Other		(1.00%)		(4.00%)	(1.00%)
Effective Income Tax Rate, Continuing Operations, Total		0.00%		0.00%	0.00%
Infinity Pharmaceuticals Inc [Member]
Reconciliation Of Statutory Federal Tax Rate [Line Items]
Tax benefit at U.S. statutory rates	$ (9,317)		$ (9,505)
State tax	(1,986)		(3,024)
Increase in valuation allowance	12,046		13,621
Other	15		(93)
Income tax expense	0		0
Permanent differences	215		191
Tax credit carryforwards	(1,533)		(1,416)
Adjustments to deferred tax assets and deferred tax liabilities	$ 560		$ 226

Accrued Expenses and Other Current Liabilities (Detail) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022	Jun. 30, 2022	Dec. 31, 2021	Jun. 30, 2021
Accrued compensation and benefits			$ 4,346		$ 3,513
Operating lease liability, current portion	$ 1,385		871		928
Other			$ 174		$ 72
Infinity Pharmaceuticals Inc [Member]
Accrued clinical	3,881	$ 4,290		$ 4,998
Accrued compensation and benefits	1,204	605		2,835
Accrued restructuring costs	841	0
Accrued development	407	335		755
Accrued consulting	321	742		475
Accrued professional services	288	785		88
Liability related to sale of future royalties, net, current portion	1,307	1,218		897
Operating lease liability, current portion	613	593		519
Other	492	655		413
Total accrued expenses and other current liabilities	$ 9,354	$ 9,223		$ 10,980

Strategic Agreements - Takeda Agreement (Detail) - Infinity Pharmaceuticals Inc [Member] - Takeda Pharmaceutical Company Limited [Member]	Mar. 04, 2019
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
From the Takeda Amendment Effective Date until June 30, 2022	145.00%
From July 1, 2022 through June 30, 2023	155.00%
From July 1, 2023 through June 30, 2024	165.00%
From July 1, 2024 through June 30, 2025	175.00%

Cover Page	9 Months Ended
Cover Page	Mar. 31, 2023
Document Information [Line Items]
Document Type	S-4/A
Amendment Flag	true
Entity Registrant Name	MEI Pharma, Inc.
Entity Tax Identification Number	51-0407811
Entity Central Index Key	0001262104
Entity Filer Category	Non-accelerated Filer
Entity Emerging Growth Company	false
City Area Code	858
Local Phone Number	369-7100
Entity Small Business	true
Entity Incorporation, State or Country Code	DE
Entity Address, Address Line One	11455 El Camino Real
Entity Address, City or Town	San Diego
Entity Address, State or Province	CA
Entity Address, Postal Zip Code	92130
Amendment Description	The Registrant hereby amends this registration statement on such date or dates as may be necessary to delay its effective date until the Registrant shall file a further amendment which specifically states that this registration statement shall thereafter become effective in accordance with Section 8(a) of the Securities Act of 1933, as amended, or until the registration statement shall become effective on such date as the Securities and Exchange Commission, acting pursuant to said Section 8(a), may determine.
Entity Primary SIC Number	2834
Business Contact [Member]
Document Information [Line Items]
City Area Code	858
Local Phone Number	369-7100
Entity Address, Address Line One	11455 El Camino Real
Entity Address, Address Line Two	Suite 250
Entity Address, City or Town	San Diego
Entity Address, State or Province	CA
Entity Address, Postal Zip Code	92130
Contact Personnel Name	David M. Urso

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022	Jun. 30, 2022	Dec. 31, 2021	Jun. 30, 2021
Current assets:
Cash and cash equivalents	$ 8,812		$ 15,740		$ 8,543
Short-term investments	103,224	$ 103,200	137,512		144,883
Total cash, cash equivalents and short-term investments	112,036		153,252		153,426
Unbilled receivables	4,580		10,044		7,582
Prepaid expenses and other current assets	3,867		3,830		3,809
Total current assets	120,483		167,126		164,817
Operating lease right-of-use asset	12,338		9,054		7,774
Property and equipment, net	1,366		1,660		1,507
Total assets	134,187		177,840		174,098
Current liabilities:
Accounts payable	4,389		7,918		6,355
Accrued liabilities	16,264		10,820		8,402
Deferred revenue	1,583		4,834		4,526
Operating lease liability, current portion	1,385		871		928
Total current liabilities	23,621		24,443		20,211
Deferred revenue, long-term	64,545		90,610		74,696
Operating lease liability	11,667		8,771		7,370
Warrant liability	0		1,603		22,355
Total liabilities	99,833		125,427		124,632
Commitments and contingencies
Stockholders' equity:
Preferred stock, $0.01 par value; 100 shares authorized; none outstanding	0		0		0
Common stock, $0.00000002 par value; 226,000 shares authorized; 6,663 and 6,658 shares issued and outstanding at March 31, 2023 and June 30, 2022, respectively	0		0		0
Additional paid-in-capital	430,322		426,572		369,171
Accumulated deficit	(395,968)	(396,000)	(374,159)		(319,705)
Total stockholders' equity	34,354	48,374	52,413	$ 73,334	49,466
Total liabilities and stockholders' equity	134,187		$ 177,840		$ 174,098
Infinity Pharmaceuticals Inc [Member]
Current assets:
Cash and cash equivalents	25,737	38,313		80,726
Prepaid expenses and other current assets	2,626	1,989		1,542
Total current assets	28,363	40,302		82,268
Operating lease right-of-use asset	597	697		1,064
Property and equipment, net	695	800		1,241
Restricted cash, less current portion	158	158		158
Other assets	138	194		54
Total assets	29,951	42,151		84,785
Current liabilities:
Accounts payable	1,935	4,405		2,320
Accrued liabilities		9,223		10,980
Operating lease liability, current portion	613	593		519
Accrued expenses and other current liabilities	9,354	9,223		10,980
Total current liabilities	11,289	13,628		13,300
Operating lease liability	164	324		917
Liabilities related to sale of future royalties, net, less current portion (Note 9)	46,782	47,213		48,727
Other liabilities	38	37		270
Total liabilities	58,273	61,202		63,214
Commitments and contingencies
Stockholders' equity:
Preferred stock, $0.01 par value; 100 shares authorized; none outstanding	0	0		0
Common stock, $0.00000002 par value; 226,000 shares authorized; 6,663 and 6,658 shares issued and outstanding at March 31, 2023 and June 30, 2022, respectively	89	89		89
Additional paid-in-capital	838,586	836,812		833,065
Accumulated deficit	(866,997)	(855,952)		(811,583)
Total stockholders' equity	(28,322)	(19,051)		21,571
Total liabilities and stockholders' equity	$ 29,951	$ 42,151		$ 84,785

License Agreements	9 Months Ended	12 Months Ended
License Agreements	Mar. 31, 2023	Jun. 30, 2022
Related Party Transactions [Abstract]
License Agreements	Note 4. License Agreements Kyowa Kirin License, Development and Commercialization Agreement In April 2020, we entered into the Kyowa Kirin Commercialization Agreement under which we granted to Kyowa Kirin a co-exclusive, sublicensable, payment-bearing license under certain patents and know-how controlled by us to develop and commercialize zandelisib and any pharmaceutical product containing zandelisib for all human indications in the U.S. (the “U.S. License”), and an exclusive (subject to certain retained rights to perform obligations under the Kyowa Kirin Commercialization Agreement), sublicensable, payment-bearing, license under certain patents and know-how controlled by us to develop and commercialize zandelisib and any pharmaceutical product containing zandelisib for all human indications in countries outside of the U.S. (the “Ex-U.S.” and the “Ex-U.S. License”). Kyowa Kirin granted to us a co-exclusive, sublicensable, license under certain patents and know-how controlled by Kyowa Kirin to develop and commercialize zandelisib for all human indications in the U.S., and a co-exclusive, sublicensable, royalty-free, fully paid license under certain patents and know-how controlled by Kyowa Kirin to perform our obligations in the Ex-U.S. under the Kyowa Kirin Commercialization Agreement. Kyowa Kirin paid us an initial payment of $ 100.0 million. Kyowa Kirin is responsible for the development and commercialization of zandelisib in the Ex-U.S. and, subject to certain exceptions, is solely responsible for all costs related thereto. We provide to Kyowa Kirin certain drug supplies necessary for the development and commercialization of zandelisib in the Ex-U.S., with the understanding that Kyowa Kirin will assume responsibility for manufacturing for the Ex-U.S. as soon as practicable. We assessed the Kyowa Kirin Commercialization Agreement in accordance with Topic 808 and Topic 606 and determined that our obligations comprise the U.S. License, the Ex-U.S. License, and development services (the “Development Services”). We determined that the Kyowa Kirin Commercialization Agreement is a collaborative arrangement in accordance with Topic 808 that contains multiple units of account, as we and Kyowa Kirin are both active participants in the development and commercialization activities and are exposed to significant risks and rewards that are dependent on commercial success of the activities of the arrangement. The U.S. License is a unit of account under the scope of Topic 808 and is not a deliverable under Topic 606, while the Ex-U.S. License and Development Services performance obligations are under the scope of Topic 606. As discussed in Note 1, we and Kyowa Kirin jointly decided to discontinue zandelisib development in the U.S. As of March 31, 2023, we updated our assessment of the total transaction price from the Kyowa Kirin Commercialization Agreement to be $ 217.0 million, comprised of the upfront payment of $ 100.0 million, milestone payments of $ 20.0 million, estimated development cost-sharing of $ 91.8 million, and deferred revenue of $ 5.2 million. As of March 31, 2023, the updated assessment reflects a decrease in estimated variable consideration related to development cost sharing of $ 143.1 million from June 30, 2022. In December 2022, we announced our plan to discontinue the global development of zandelisib outside of Japan. As a result, we decreased our estimate for variable consideration related to development cost sharing. During the three months ended December 31, 2022, we recognized revenue of $ 16.6 million from the change in estimate. Additionally , during the three months ended December 31, 2022 , we recognized $ 8.6 million of revenue related to non-refundable payments for performance obligations that have not commenced and will no longer be initiated. Any variable consideration related to sales-based royalties and commercial milestones related to licenses of intellectual property will be determined when the sale or usage occurs, and is therefore excluded from the transaction price. In addition, we are eligible to receive future development and regulatory milestones upon the achievement of certain criteria; however, these amounts are excluded from variable consideration as the risk of significant revenue reversal will only be resolved depending on future research and development and/or regulatory approval outcomes. We re-evaluate the estimated variable consideration included in the transaction price and any related constraints at the end of each reporting period. We allocated the transaction price of the Ex-U.S. License and Development Services performance obligations to each unit of account. Variable consideration that relates specifically to our efforts to satisfy specific performance obligations are allocated entirely to those performance obligations. Other components of the transaction price are allocated based on the relative stand-alone selling price, over which management has applied significant judgment. We developed the estimated stand-alone selling price for the licenses using the risk-adjusted net present values of estimated cash flows, and the estimated stand-alone selling price of the development services performance obligations by estimating costs to be incurred, and an appropriate margin, using an income approach. We determined that control of the U.S. License and Ex-U.S. License were transferred to Kyowa Kirin during the year ended June 30, 2020, and recognized revenue of $ 21.0 million related to the Ex-U.S. License. The $ 64.5 million transaction price allocated to the U.S. License obligation accounted for under Topic 808 is included as non-current deferred revenue. As described in Note 1 we and Kyowa Kirin intend to terminate the Kyowa Kirin Commercialization Agreement. As of March 31, 2023 and June 30, 2022, we have deferred revenue of $ 1.6 million and $ 30.9 million, respectively, related to the transaction price allocated to the Development Services performance obligations and are recognizing this revenue based on the proportional performance of these development activities, which we expect to recognize through fiscal year 2024. Presage License Agreement In September 2017, we entered into a license agreement with Presage Biosciences, Inc. (“Presage”). Under the terms of such license agreement (the “Presage License Agreement”), Presage granted to us exclusive worldwide rights to develop, manufacture and commercialize voruciclib, a clinical-stage, oral and selective CDK inhibitor, and related compounds. In exchange, we paid $ 2.9 million. With respect to the first indication, an incremental $ 2.0 million payment, due upon dosing of the first subject in the first registration trial, will be owed to Presage, for total payments of $ 4.9 million prior to receipt of marketing approval of the first indication in the U.S., E.U. or Japan. Additional potential payments of up to $ 179 million will be due upon the achievement of certain development, regulatory and commercial milestones. We will also pay mid-single-digit tiered royalties on the net sales of any product successfully developed. As an alternative to milestone and royalty payments related to countries in which we sublicense product rights, we will pay to Presage a tiered percent (which decreases as product development progresses) of amounts received from such sublicensees.	Note 2. KKC License, Development and Commercialization Agreement In April 2020, we entered into the License, Development and Commercialization Agreement (the “KKC Commercialization Agreement”) with Kyowa Kirin Company (“KKC”). Under the KKC Commercialization Agreement, we granted to KKC a co-exclusive, sublicensable, payment-bearing license under certain patents and know-how controlled by us to develop and commercialize zandelisib and any pharmaceutical product containing zandelisib for all human indications in the U.S. (the “U.S. License”), and an exclusive (subject to certain retained rights to perform obligations under the KKC Commercialization Agreement), sublicensable, payment-bearing, license under certain patents and know-how controlled by us to develop and commercialize zandelisib and any pharmaceutical product containing zandelisib for all human indications in countries outside of the U.S. (the “Ex-U.S.” or the “Ex-U.S. License”). KKC granted to us a co-exclusive, sublicensable, license under certain patents and know-how controlled by KKC to develop and commercialize zandelisib for all human indications in the U.S., and a co-exclusive, sublicensable, royalty-free, fully paid license under certain patents and know-how controlled by KKC to perform our obligations in the Ex-U.S. under the KKC Commercialization Agreement. KKC paid us an initial payment of $100 million in May 2020. Additionally, we may earn up to approximately $582.5 million in potential development, regulatory and commercialization milestone payments, plus royalties on net sales of zandelisib in the Ex-U.S., which are tiered beginning in the teens. KKC will be responsible for the development and commercialization of zandelisib in the Ex-U.S. and, subject to certain exceptions, will be solely responsible for all costs related thereto. We will co-develop and co-promote zandelisib with KKC in the U.S., with the Company recording all revenue from U.S. sales. We will share U.S. profits and costs (including development costs) on a 50-50 basis with KKC. We will also provide to KKC certain drug supplies necessary for the development and commercialization of zandelisib in the Ex-U.S., with the understanding that KKC will assume responsibility for manufacturing for the Ex-U.S. as soon as practicable. We assessed the KKC Commercialization Agreement in accordance with Topic 808 and Topic 606 and determined that our obligations comprise the U.S. License, the Ex-U.S. License, and development services (the “Development Services”). We determined that the KKC Commercialization Agreement is a collaborative arrangement in accordance with Topic 808 that contains multiple units of account, as we and KKC are both active participants in the development and commercialization activities and are exposed to significant risks and rewards that are dependent on commercial success of the activities of the arrangement. The U.S. License is a unit of account under the scope of Topic 808 and is not a deliverable under Topic 606, while the Ex-U.S. License and Development Services performance obligations are under the scope of Topic 606. We determined, at the time of our initial assessment, that the total transaction price of $191.5 million is comprised of the upfront payment of $100.0 million, expected milestone payments of $20.0 million, estimated variable consideration related to development cost-sharing of $66.3 million, and deferred revenue of $5.2 million from the KKC Commercialization Agreement. During the year ended June 30, 2022, we updated our estimate of variable consideration related to development cost sharing to $234.9 million. We increased our estimate primarily as a result of further visibility into total expected costs for these development estimates. Any variable consideration related to sales-based royalties and commercial milestones related to licenses of intellectual property will be determined when the sale or usage occurs and is, therefore, excluded from the transaction price. In addition, we are eligible to receive future development and regulatory milestones upon the achievement of certain criteria; however, these amounts are excluded from variable consideration as the risk of significant revenue reversal will only be resolved depending on future research and development and/or regulatory approval outcomes. We re-evaluate the estimated variable consideration included in the transaction price and any related constraints at the end of each reporting period. We allocated the transaction price to each unit of account. Variable consideration that relates specifically to our efforts to satisfy specific performance obligations are allocated entirely to those performance obligations. Other components of the transaction price are allocated based on the relative stand-alone selling price, over which management has applied significant judgment. We developed the estimated stand-alone selling price for the licenses using the risk-adjusted net present values of estimated cash flows, and the estimated stand-alone selling price of the development services performance obligations by estimating costs to be incurred, and an appropriate margin, using an income approach. We determined that control of the U.S. License and Ex-U.S. License were transferred to KKC during the year ended June 30, 2020, and recognized revenue of $21.0 million related to the Ex-U.S. License. The $64.5 million transaction price allocated to the U.S. License obligation accounted for under Topic 808 is recorded as non-current deferred revenue and will begin to be recognized upon future commercialization as non-ASC 606 revenue. As of June 30, 2022 and 2021, we recorded deferred revenue of $30.9 million and $14.7 million, respectively, for the transaction price allocated to the Development Services performance obligations, and we are recognizing this revenue based on the proportional performance of these development activities which we expect to recognize through fiscal year 2030.

Fair Value (Detail) - USD ($)	Mar. 31, 2023	Dec. 31, 2022	Jun. 30, 2022	Mar. 31, 2022	Dec. 31, 2021	Jun. 30, 2021
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash and cash equivalents	$ 8,812,000		$ 15,740,000			$ 8,543,000
Infinity Pharmaceuticals Inc [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash and cash equivalents	25,737,000	$ 38,313,000		$ 53,125,000	$ 80,726,000
Target net asset value		1
Infinity Pharmaceuticals Inc [Member] \| Fair Value, Inputs, Level 3 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Available-for-sale securities	$ 0	0
Warrant liability		200,000
Infinity Pharmaceuticals Inc [Member] \| Fair Value, Inputs, Level 3 [Member] \| Fair Value, Recurring [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Warrant liability		$ 200,000			$ 200,000

Leases

9 Months Ended

12 Months Ended

Mar. 31, 2023

Jun. 30, 2022

Disclosure Text Block [Abstract]

Leases

Note 8. Leases

In July 2020, we entered into a lease agreement (the “Initial Lease Agreement”) for office space in San Diego, California. The Initial Lease Agreement was extended to November 30, 2029, in accordance with the amended lease agreement that we entered into in January 2022 (the “Amended Lease Agreement”). The Amended Lease Agreement, which began on July 1, 2022 and expires on November 30, 2029, provides additional office space adjacent to our current office in San Diego. Upon taking control of the additional office space on July 1, 2022, we recognized operating lease ROU assets obtained in exchange for operating lease liabilities

of $

4.3

million. The Initial Lease Agreement and Amended Lease Agreement are collectively referred to as the “Lease Agreements” and have been accounted for as operating leases.

The following is a schedule of the future minimum lease payments under the Lease Agreements, reconciled to the operating lease liability, as of March 31, 2023 (in thousands):


	March 31, 2023

Remainder of fiscal year ending June 30, 2023	$	566
Years ending June 30,
2024		2,335
2025		1,913
2026		2,477
2027		2,551
2028		2,715
Thereafter		4,386

Total lease payments		16,943
Less: Present value discount		(3,891	)

Total operating lease liability	$	13,052

Balance Sheet Classification – Operating Leases
Operating lease liability	$	1,385
Operating lease liability, long-term		11,667

Total operating lease liability	$	13,052

Other Balance Sheet Information – Operating Leases
Weighted average remaining lease term (in years)		6.7
Weighted average discount rate		7.50	%

The Lease Agreements include rent escalations over the lease terms. In addition, the Lease Agreements include renewal options which were not included in the determination of the ROU assets or lease liabilities as the renewals were not reasonably certain at the inception of the Lease Agreements. Under the terms of the Lease Agreements, we are subject to charges for variable

non-lease

components (e.g., common area maintenance, maintenance, etc.) that are not included in the ROU assets and operating lease liabilities and are recorded as an expense in the period incurred.

The total operating lease costs and supplemental cash flow information related to our operating leases were as follows (in thousands):


	Three Months Ended March 31,				Nine Months Ended March 31,
	2023		2022		2023		2022

Operating lease expense	$	609	$	377	$	1,826	$	1,130
Operating cash flows from operating leases	$	567	$	380	$	1,700	$	1,139

Note 11. Leases

In July 2020, we entered into a lease agreement (the “Initial Lease Agreement”) for approximately 32,800 square feet of office space in San Diego, California. The Lease Agreement was scheduled to expire in March 2028 but was extended by 20 months to November 2029 in accordance with the amended lease agreement we entered into in January 2022 (the “Amended Lease Agreement”). The Initial and Amended Lease Agreements are collectively referred to as the lease agreements. The lease agreements contain rent escalations over the lease term. We have accounted for the lease agreements as operating leases. The lease agreements contain an option to renew and extend the lease term, which is not included in the determination of the ROU asset and operating lease liability, as it was not reasonably certain to be exercised. Upon commencement of the Amended Lease Agreement, to extend the lease term, we recognized an additional operating lease ROU asset and a corresponding operating lease liability. The lease agreements include variable

non-lease

components (e.g., common area maintenance, maintenance, etc.) that are not included in the ROU asset and operating lease liability and are reflected as an expense in the period incurred.

The Amended Lease Agreement also provides for an additional 12,300 square feet of office space adjacent to our current office in San Diego, beginning on July 1, 2022, for approximately 45,100 square feet of office space, which will be accounted for as an additional ROU asset and operating lease liability once we obtain control of the additional lease space. Our total contractual obligation for the additional lease space is $5.7 million.

The total operating lease costs for the Lease Agreement were as follows for the periods presented (in thousands):


	Years Ended June 30,
	2022		2021		2020
Operating lease cost	$	1,583	$	1,507	$	692

Supplemental cash flow information related to our operating leases was as follows for the periods presented (in thousands):


	Years Ended June 30,
	2022		2021		2020
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	1,519	$	983	$	—
Right-of-use assets obtained in exchange for operating lease obligations:	$	2,189	$	8,689	$	—

The following is a schedule of the future minimum rental payments for our operating leases, reconciled to the lease liability as of June 30, 2022 (in thousands):


	June 30, 2022
Years ending June 30,
2023	$	1,565
2024		1,612
2025		1,168
2026		1,710
2027		1,761
Thereafter		5,090

Total lease payments		12,906
Less: Present value discount		(3,264	)

Total operating lease liability	$	9,642

Balance Sheet Classification—Operating Leases
Operating lease liability	$	871
Operating lease liability, long-term		8,771

Total operating lease liability	$	9,642

Other Balance Sheet Information—Operating Leases
Weighted average remaining lease term (in years)		7.4
Weighted average discount rate		7.50	%

Net Loss Per Share - Additional Information (Detail) - shares	3 Months Ended		9 Months Ended		12 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Mar. 31, 2023	Mar. 31, 2022	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2020
Potentially Dilutive Securities Outstanding [Line Items]
Common stock subject to repurchase or forfeiture	0	0	0	0	0	0	0

Schedule of Future Minimum Rental Payments (Detail) - USD ($) $ in Thousands	Mar. 31, 2023	Jun. 30, 2022	Jun. 30, 2021
Disclosure Text Block [Abstract]
Remainder of fiscal year ending June 30, 2023	$ 566
2024	2,335	$ 1,565
2025	1,913	1,612
2026	2,477	1,168
2027	2,551	1,710
2028	2,715	1,761
Thereafter	4,386	5,090
Total lease payments	16,943	12,906
Less: Present value discount	(3,891)	(3,264)
Total operating lease liability	13,052	9,642
Operating lease liabilities	1,385	871	$ 928
Operating lease liabilities, long-term	11,667	8,771	$ 7,370
Operating lease liabilities, Total	$ 13,052	$ 9,642
Weighted average remaining lease term (in years)	6 years 8 months 12 days	7 years 4 months 24 days
Weighted average discount rate	7.50%	7.50%

Short-Term Investments - Additional Information (Detail) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022	Sep. 30, 2022	Jun. 30, 2022	Jun. 30, 2021
Schedule of Equity Method Investments [Line Items]
Short-term investments	$ 103,224	$ 103,200	$ 137,500	$ 137,512	$ 144,883

Schedule of Assumptions Used to Calculate Fair Value of Warrant Liability (Detail)	Mar. 31, 2023 USD ($) yr	Jun. 30, 2022 USD ($) yr	Jun. 30, 2021 USD ($) yr
Risk Free Interest Rate
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Warrants and Rights Outstanding, Measurement Input	4.6	2.8	0.2
Expected life years
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Warrants and Rights Outstanding, Measurement Input \| yr	0.1	0.9	1.9
Expected volatility
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Warrants and Rights Outstanding, Measurement Input	91.5	139.4	88.5
Dividend Yield
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Warrants and Rights Outstanding, Measurement Input	0	0	0
Black-Scholes Fair Value
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Warrants and Rights Outstanding, Measurement Input \| $	0	0.1	27.8
Black-Scholes Fair Value \| Previously Reported [Member]
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Warrants and Rights Outstanding, Measurement Input		2

Leases - Additional Information (Detail) $ in Thousands	9 Months Ended	12 Months Ended
Leases - Additional Information (Detail) $ in Thousands	Mar. 31, 2023 USD ($)	Jun. 30, 2022 USD ($)	Jul. 31, 2022 USD ($) ft² Segment	Jul. 01, 2022 USD ($)	Jul. 31, 2020 ft²
Number of square feet under lease \| ft²					32,800
Extended date	November 30, 2029	November 2029
Lease expire date	Nov. 30, 2029	Mar. 31, 2028
Operating lease liabilities, Total	$ 13,052	$ 9,642
San Diego California [Member]
Operating lease liabilities, Total				$ 4,300
Contractual obligation			$ 5,700
Accounting Standards Update 2016-02 [Member]
Number of square feet under lease \| ft²			12,300
Accounting Standards Update 2016-02 [Member] \| San Diego California [Member]
Number of square feet under lease \| Segment			45,100

Defined Contribution Benefit Plan	12 Months Ended
Defined Contribution Benefit Plan	Dec. 31, 2022
Infinity Pharmaceuticals Inc [Member]
Retirement Benefits [Line Items]
Defined Contribution Benefit Plan	14. Defined Contribution Benefit Plan We sponsor a 401(k) retirement plan in which substantially all of our full-time employees are eligible to participate. Participants may contribute a percentage of their annual compensation to this plan, subject to statutory limitations. During the years ended December 31, 2022 and 2021, we matched participants’ contributions up to 6% of the participant’s pre-tax salary. Our matching contributions for the years ended December 31, 2022 and 2021 was $0.3 million and $0.2 million, respectively.

The entire disclosure for retirement benefits.

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Schedule of Future Minimum Rental Payments

Antidilutive Securities (Detail) - shares	3 Months Ended		9 Months Ended		12 Months Ended
Antidilutive Securities (Detail) - shares	Mar. 31, 2023	Mar. 31, 2022	Mar. 31, 2023	Mar. 31, 2022	Dec. 31, 2022	Jun. 30, 2022	Dec. 31, 2021	Jun. 30, 2021	Jun. 30, 2020
Potentially Dilutive Securities Outstanding [Line Items]
Total anti-dilutive shares	2,163,000	1,834,000	2,177,000	1,309,000		1,437		1,016	1,355
Stock options
Potentially Dilutive Securities Outstanding [Line Items]
Total anti-dilutive shares	14,199,758	14,538,334	1,340,000	1,029,000		1,024		794	552
Stock options \| Previously Reported [Member]
Potentially Dilutive Securities Outstanding [Line Items]
Total anti-dilutive shares	1,258,000	1,020,000
Warrants
Potentially Dilutive Securities Outstanding [Line Items]
Total anti-dilutive shares	905,000	11,000	837,000	12,000		402		201	803
Restricted stock units
Potentially Dilutive Securities Outstanding [Line Items]
Total anti-dilutive shares	0	803,000	0	268,000		11		21	0
Restricted Stock
Potentially Dilutive Securities Outstanding [Line Items]
Total anti-dilutive shares	2,929,149	50,000
Infinity Pharmaceuticals Inc [Member] \| Stock options
Potentially Dilutive Securities Outstanding [Line Items]
Total anti-dilutive shares					14,663,697		12,689,439
Infinity Pharmaceuticals Inc [Member] \| Restricted Stock
Potentially Dilutive Securities Outstanding [Line Items]
Total anti-dilutive shares					2,939,816		50,000

Liabilities Related to Sale of Future Royalties - Additional Information (Detail) - Infinity Pharmaceuticals [Member] - USD ($) $ in Millions		1 Months Ended
	Jan. 08, 2020	Mar. 31, 2019	Dec. 31, 2022
Research and Development Arrangement, Contract to Perform for Others [Line Items]
Number of warrants issued			0
HealthCare Royalty Partners III, L.P [Member]
Research and Development Arrangement, Contract to Perform for Others [Line Items]
Closing day payment		$ 30.0
Gross proceeds		22.5
Net proceeds		20.9
Deferred transaction costs amortized		$ 2.4
BVF Funding Agreement [Member]
Research and Development Arrangement, Contract to Perform for Others [Line Items]
Warrant threshold, price per share	3.75
BVF Funding Agreement [Member] \| Holdco [Member]
Research and Development Arrangement, Contract to Perform for Others [Line Items]
Option to purchase, percentage of outstanding equity interests	100.00%
BVF Funding Agreement [Member] \| BVF And Royalty Security, LLC [Member]
Research and Development Arrangement, Contract to Perform for Others [Line Items]
Deferred transaction costs amortized	$ 0.4
Upfront purchase price	20.0
Warrant liability	$ 0.3
Period after closing date	36 months
Percentage of common stock called by warrant	50.00%
Exercise price of warrant, percentage of price per share	1.50%

Liabilities Related to Sale of Future Royalties - Liability Activity (Detail) - Infinity Pharmaceuticals Inc - USD ($) $ in Thousands	3 Months Ended		12 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Dec. 31, 2022	Dec. 31, 2021
Liability Related To Future Sale Of Royalties RollForward [Line Items]
Non-cash royalty revenue			$ 1,373	$ 984
Non-cash interest expense recognized	$ 45	$ 45	180	180
Less: current portion	1,307		1,218	897
Liability related to sale of future royalties, net, less current portion	46,782		47,213	48,727
HCR Agreement
Liability Related To Future Sale Of Royalties RollForward [Line Items]
Liability related to sale of future royalties - beginning balance	26,818	28,038	28,038	28,869
Non-cash interest expense recognized	38		153	153
Liability related to sale of future royalties, net - ending balance	26,469		26,818	28,038
Less: current portion	(1,307)		(1,218)	(897)
Liability related to sale of future royalties, net, less current portion	25,162		25,600	27,141
HCR Agreement \| Royalty revenue
Liability Related To Future Sale Of Royalties RollForward [Line Items]
Non-cash royalty revenue	(387)		(1,373)	(984)
BVF Funding Agreement
Liability Related To Future Sale Of Royalties RollForward [Line Items]
Liability related to sale of future royalties - beginning balance	21,613	$ 21,586	21,586	21,559
Non-cash interest expense recognized	7		27	27
Liability related to sale of future royalties, net - ending balance	$ 21,620		$ 21,613	$ 21,586

Leases (Tables)

9 Months Ended

12 Months Ended

Mar. 31, 2023

Jun. 30, 2022

Disclosure Text Block [Abstract]

The following is a schedule of the future minimum lease payments under the Lease Agreements, reconciled to the operating lease liability, as of March 31, 2023 (in thousands):


	March 31, 2023

Remainder of fiscal year ending June 30, 2023	$	566
Years ending June 30,
2024		2,335
2025		1,913
2026		2,477
2027		2,551
2028		2,715
Thereafter		4,386

Total lease payments		16,943
Less: Present value discount		(3,891	)

Total operating lease liability	$	13,052

Balance Sheet Classification – Operating Leases
Operating lease liability	$	1,385
Operating lease liability, long-term		11,667

Total operating lease liability	$	13,052

Other Balance Sheet Information – Operating Leases
Weighted average remaining lease term (in years)		6.7
Weighted average discount rate		7.50	%

The following is a schedule of the future minimum rental payments for our operating leases, reconciled to the lease liability as of June 30, 2022 (in thousands):


	June 30, 2022
Years ending June 30,
2023	$	1,565
2024		1,612
2025		1,168
2026		1,710
2027		1,761
Thereafter		5,090

Total lease payments		12,906
Less: Present value discount		(3,264	)

Total operating lease liability	$	9,642

Balance Sheet Classification—Operating Leases
Operating lease liability	$	871
Operating lease liability, long-term		8,771

Total operating lease liability	$	9,642

Other Balance Sheet Information—Operating Leases
Weighted average remaining lease term (in years)		7.4
Weighted average discount rate		7.50	%

Schedule of Total Operating Costs

The total operating lease costs and supplemental cash flow information related to our operating leases were as follows (in thousands):


	Three Months Ended March 31,				Nine Months Ended March 31,
	2023		2022		2023		2022

Operating lease expense	$	609	$	377	$	1,826	$	1,130
Operating cash flows from operating leases	$	567	$	380	$	1,700	$	1,139

The total operating lease costs for the Lease Agreement were as follows for the periods presented (in thousands):


	Years Ended June 30,
	2022		2021		2020
Operating lease cost	$	1,583	$	1,507	$	692

Schedule of Supplemental Cash Flow Information Related to Operating Leases

Supplemental cash flow information related to our operating leases was as follows for the periods presented (in thousands):


	Years Ended June 30,
	2022		2021		2020
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	1,519	$	983	$	—
Right-of-use assets obtained in exchange for operating lease obligations:	$	2,189	$	8,689	$	—

Accrued Liabilities (Detail) - USD ($) $ in Thousands	Mar. 31, 2023	Jun. 30, 2022	Jun. 30, 2021
Accrued Liabilities [Line Items]
Accrued pre-clinical and clinical trial expenses		$ 5,264	$ 4,004
Accrued compensation and benefits		4,346	3,513
Accrued legal and professional services expenses		1,036	813
Other		174	72
Total accrued liabilities	$ 16,264	$ 10,820	$ 8,402

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)	3 Months Ended		9 Months Ended		12 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Mar. 31, 2023	Mar. 31, 2022	Dec. 31, 2022	Jun. 30, 2022	Dec. 31, 2021	Jun. 30, 2021	Jun. 30, 2020
Cash flows from operating activities:
Net loss			$ (21,809,000)	$ (38,391,000)		$ (54,454,000)		$ (41,314,000)	$ (47,173,000)
Adjustments to reconcile net loss to net cash used in operating activities:
Change in fair value of warrant liability	$ 0	$ (12,773,000)	(1,603,000)	(20,819,000)		(20,752,000)		(18,122,000)	22,870,000
Share-based compensation expense	918,000	2,837,000	3,290,000	7,700,000		8,350,000		10,245,000	6,801,000
Issuance of warrants			500,000	0
Depreciation and amortization			288,000	241,000		326,000		285,000	109,000
Non-cash lease expense			1,063,000	636,000		909,000		0	0
Impairment of intangible assets						0		0	227,000
Changes in operating assets and liabilities:
Unbilled receivables			5,464,000	(864,000)		(2,462,000)		(4,724,000)	(2,347,000)
Prepaid expenses and other current assets			(37,000)	(2,169,000)		(21,000)		(1,073,000)	(812,000)
Accounts payable			(3,529,000)	1,902,000		1,563,000		3,918,000	(2,350,000)
Accrued liabilities			5,444,000	1,680,000		2,418,000		2,312,000	1,470,000
Deferred revenue			(29,316,000)	17,487,000		16,222,000		(4,435,000)	75,883,000
Operating lease liability			(937,000)	(645,000)		(845,000)		524,000	0
Receivable for foreign tax withholding						0		20,420,000	(20,420,000)
Net cash used in operating activities			(41,182,000)	(33,242,000)		(48,746,000)		(31,964,000)	34,258,000
Cash flows from investing activities:
Purchases of short-term investments			(92,098,000)	(218,164,000)		(272,652,000)		(420,153,000)	(190,279,000)
Proceeds from maturity of short-term investments			126,386,000	205,117,000		280,023,000		445,569,000	84,879,000
Proceeds from (purchases) of property and equipment			6,000	(173,000)					(894,000)
Purchases of property and equipment						(479,000)		(708,000)
Net cash provided by (used in) investing activities			34,294,000	(13,220,000)		6,892,000		24,708,000	(106,294,000)
Cash flows from financing activities:
Payment of RSU tax withholdings in exchange for common shares surrendered by RSU holders			(40,000)	(194,000)		(194,000)		0	0
Proceeds from exercise of stock options			0	572,000		572,000		332,000	272,000
Proceeds from issuance of common stock, gross			0	52,325,000		52,325,000		3,200,000	72,962,000
Payment of issuance costs			0	(3,672,000)		(3,652,000)		(64,000)	(3,731,000)
Collection of common stock proceeds receivable						0		0	5,274,000
Net cash (used in) provided by financing activities			(40,000)	49,031,000		49,051,000		3,468,000	74,777,000
Net (decrease) increase in cash and cash equivalents			(6,928,000)	2,569,000		7,197,000		(3,788,000)	2,741,000
Cash and cash equivalents at beginning of the period			15,740,000	8,543,000		8,543,000		12,331,000	9,590,000
Cash and cash equivalents at end of the period	8,812,000	11,112,000	8,812,000	11,112,000		15,740,000		8,543,000	12,331,000
Supplemental disclosures:
Operating lease right-of-use assets obtained in exchange for operating lease liabilities			4,347,000	0		2,189,000		8,689,000	0
Income taxes paid						0		(8,000)	(1,000)
Non-cash financing activities:
Warrants issued pursuant to cashless exercise						0		6,000	$ 0
Restricted Cash and Cash Equivalents, Noncurrent [Abstract]
Cash and cash equivalents	8,812,000		8,812,000			$ 15,740,000		$ 8,543,000
Infinity Pharmaceuticals Inc [Member]
Cash flows from operating activities:
Net loss	(11,045,000)	(12,436,000)			$ (44,369,000)		$ (45,262,000)
Adjustments to reconcile net loss to net cash used in operating activities:
Share-based compensation expense	1,774,000	867,000			3,621,000		2,695,000
Depreciation and amortization	105,000	121,000			458,000		480,000
Non-cash lease expense	(387,000)	(345,000)
Non-cash royalty revenue					(1,373,000)		(984,000)
Non-cash interest expense	45,000	45,000			180,000		180,000
Other, net	(220,000)	14,000			91,000		59,000
Changes in operating assets and liabilities:
Prepaid expenses and other current assets	(581,000)	(1,570,000)			(587,000)		171,000
Operating lease liability	(140,000)	(122,000)			(519,000)		(489,000)
Operating lease right-of-use asset	100,000	87,000			367,000		355,000
Accounts payable, accrued expenses and other liabilities	(2,227,000)	(196,000)			(300,000)		2,177,000
Net cash used in operating activities	(12,576,000)	(13,535,000)			(42,431,000)		(40,618,000)
Cash flows from investing activities:
Purchases of property and equipment	0	(17,000)			(17,000)		(11,000)
Purchases of available-for-sale securities	0	(14,049,000)			(16,038,000)		0
Proceeds from maturities of available-for-sale securities					16,000,000		5,500,000
Net cash provided by (used in) investing activities	0	(14,066,000)			(55,000)		5,489,000
Cash flows from financing activities:
Proceeds from issuance of common stock, gross					0		85,838,000
Proceeds from issuances of common stock, net					73,000		931,000
Proceeds from common stock sales facility, net of issuance costs					0		336,000
Net cash (used in) provided by financing activities					73,000		87,105,000
Net (decrease) increase in cash and cash equivalents	(12,576,000)	(27,601,000)			(42,413,000)		51,976,000
Cash and cash equivalents at beginning of the period	38,471,000	80,884,000			80,884,000		28,908,000
Cash and cash equivalents at end of the period	25,895,000	53,283,000	25,895,000	53,283,000	38,471,000		80,884,000
Restricted Cash and Cash Equivalents, Noncurrent [Abstract]
Cash and cash equivalents	25,737,000	53,125,000	25,737,000	53,125,000	38,313,000		80,726,000
Restricted cash, less current portion	158,000	158,000	158,000	158,000	158,000		158,000
Total cash, cash equivalents and restricted cash	$ 25,895,000	$ 53,283,000	$ 25,895,000	$ 53,283,000	$ 38,471,000		$ 80,884,000

Income Taxes - Additional Information (Detail) - USD ($)	12 Months Ended
	Dec. 31, 2022	Jun. 30, 2022	Dec. 31, 2021	Jun. 30, 2021
Federal net operating loss carry forwards		$ 133,900,000
State net operating loss carry forwards		$ 23,800,000
Taxable income percentage		80.00%
Unrecognized Tax Benefits		$ 0		$ 0
Infinity Pharmaceuticals Inc [Member]
Increase in valuation allowance against deferred tax assets	$ 12,000,000		$ 13,600,000
Unrecognized Tax Benefits	0		0
Income Tax Examination, Penalties and Interest Accrued	0		0
Income Tax Examination, Penalties and Interest Expense	0		$ 0
State
Expiration year of operating loss carry forwards		2030
State \| Infinity Pharmaceuticals Inc [Member]
Federal net operating loss carry forwards	533,300,000
Tax Credit Carryforward, Amount	9,600,000
Domestic Tax Authority [Member] \| Infinity Pharmaceuticals Inc [Member]
Federal net operating loss carry forwards	653,200,000
Deferred Tax Assets, Operating Loss Carryforwards, Not Subject to Expiration	128,500,000
Tax Credit Carryforward, Amount	$ 37,700,000

Strategic Restructuring

3 Months Ended

Mar. 31, 2023

Strategic Restructuring

13. Strategic Restructuring

On February 22, 2023, in conjunction with their approval of the Merger Agreement, our board of directors approved a strategic restructuring to preserve our resources. As a result, we have reduced our overall headcount

by four positions, representing approximately 13% of our workforce at the time we entered into the Merger Agreement. During the three months ended March 31, 2023 we have incurred restructuring charges consisting of severance payments, employee benefits and related taxes, and stock-based compensation. The workforce reduction was completed on March 31, 2023.

The following table summarizes the financial impact of the restructuring activities on our operating expenses and cash flows for the three months ended March 31, 2023 and the current liability remaining on our balance sheet as of March 31, 2023:


	Charges incurred during the three months ended March 31, 2023		Amounts paid during the three months ended March 31, 2023		Less non-cash charges incurred during the three months ended March 31, 2023		Accrued restructuring costs as of March 31, 2023
	(in thousands)
Employee severance, benefits and related taxes	$	899	$	58	$	—	$	841
Stock-based compensation		821		—		821		—

Total restructuring	$	1,720	$	58	$	821	$	841

During the three months ended March 31, 2023 we recognized $1.7 million of expense related to restructuring activities of which $1.6 million is included in general and administrative expense and $0.1 million is included in research and development expense. We expect to pay the majority of the remaining amounts accrued through the quarter ended June 30, 2023.

The Company and Summary of Significant Accounting Policies

3 Months Ended

9 Months Ended

12 Months Ended

Mar. 31, 2023

Dec. 31, 2022

Jun. 30, 2022

The Company and Summary of Significant Accounting Policies

Note 1. The Company and Summary of Significant Accounting Policies

The Company

MEI Pharma, Inc. (Nasdaq: MEIP) is a clinical stage pharmaceutical company focused on developing potential new therapies for cancer. MEI Pharma’s portfolio of drug candidates includes drug candidates with differentiated or novel mechanisms of action intended to address unmet medical needs and deliver improved benefit to patients, either as standalone treatments or in combination with other therapeutic options. Our common stock is listed on the Nasdaq Capital Market under the symbol “MEIP.”

In February 2023, we, Infinity Pharmaceuticals, Inc. (“Infinity”), and Meadow Merger Sub, Inc., our wholly owned subsidiary (“Merger Sub”) entered into an agreement and plan of merger (“Merger Agreement”). The Merger Agreement provides that Merger Sub will merge with and into Infinity, with Infinity being the surviving entity as a wholly-owned subsidiary of us (transaction referred to as the “Merger”). If the Merger is consummated (the “Closing”), each share of Infinity’s common stock issued and outstanding immediately prior will be automatically converted into the right to receive 0.052245 shares (the “Exchange Ratio”) of our common stock. Subject to stockholder approval and the subsequent closing of the merger, the combined company will be renamed “Kimbrx Therapeutics, Inc.” and trade on the Nasdaq Stock Market under the symbol “KMBX”. The combined company would be headquartered in San Diego, California. The Merger Agreement has been approved by the Boards of Directors of both companies. The Merger is subject to approvals by our and Infinity’s stockholders, respectively.

On April 14, 2023, we amended our Certificate of Incorporation to affect a combination of our issued and outstanding common stock at a ratio of

one-for-twenty

(“Reverse Stock Split”). The par value and authorized shares of our common stock were not adjusted as a result of the Reverse Stock Split. The Reverse Stock Split was effective on April 14, 2023, with a market effective date of April 17, 2023. All historical share and per share amounts have been adjusted to reflect the Reverse Stock Split for all periods presented. All stock options, restricted stock units and warrants outstanding were ratably adjusted to give effect to the Reverse Stock Split.

Clinical Development Programs

We build our pipeline by licensing or acquiring promising cancer agents and creating value in programs through development, commercialization and strategic partnerships, as appropriate. Our objective is to leverage the mechanisms and properties of our pipeline drug candidates to optimize the balance between efficacy and tolerability to meet the needs of patients with cancer. Our drug candidate pipeline includes:

•

Voruciclib, an oral cyclin-dependent kinase (“CDK”) inhibitor;

•

ME-344,

an intravenous small molecule targeting the oxidative phosphorylation pathway; and

•

Zandelisib, an oral phosphatidylinositol

3-kinase

delta (“PI3K

”) inhibitor.

The results of

pre-clinical

studies and completed clinical trials are not necessarily predictive of future results, and our current drug candidates may not have favorable results in later studies or trials. The commercial opportunity will be reduced or eliminated if competitors develop and market products that are more effective, have fewer side effects or are less expensive than our drug candidates. We will need substantial additional funds to progress the clinical trial programs for the drug candidates voruciclib and

ME-344

and to develop new compounds we might license or

acquire

. The actual amount of funds that will be needed are determined by a number of factors, some of which are beyond our control. Negative U.S. and global economic conditions may pose challenges to our business strategy, which relies on funding from the financial markets or

collaborators.

Reduction in Force and Current Events

In November 2022, we and Kyowa Kirin Co., Ltd. (“Kyowa Kirin”) met with the U.S. Food and Drug Administration (“FDA”) in a

follow-up

meeting to the March 2022 end of Phase 2 meeting related to zandelisib. At this meeting, the FDA provided further guidance regarding the design and statistical analysis for the COASTAL trial. Following the November meeting, the companies jointly concluded that a clinical trial consistent with the recent FDA guidance, including modification of the ongoing COASTAL trial, would likely not be feasible to complete within a time period that would support further investment or with sufficient certainty of the regulatory requirements for approval to justify continued global development efforts. As a result, we and Kyowa Kirin jointly decided to discontinue global development of zandelisib for indolent forms of

non-Hodgkin

lymphoma outside of Japan.

The discontinuation of zandelisib development outside of Japan was a business decision based on the most recent regulatory guidance from the FDA and is not related to the zandelisib clinical data generated to date. Kyowa Kirin is continuing certain ongoing Japanese clinical trials, including the Phase 2 MIRAGE trial evaluating Japanese patients with relapsed or refractory indolent

B-cell

non-Hodgkin

lymphomas, and will explore submitting the MIRAGE and TIDAL trials for marketing authorization in Japan. MIRAGE is a Phase 2 trial, similar in design to the global Phase 2,

single-arm,

TIDAL trial. In November 2022, we and Kyowa Kirin announced positive topline data from the Phase 2 MIRAGE trial. Kyowa Kirin has been evaluating whether to continue developing zandelisib in Japan and after meeting with the Pharmaceuticals and Medical Devices Agency (“PMDA”) has concluded that conducting a randomized study consistent with agency guidance to support a marketing application would likely not be feasible to complete within a time period that would support further investment. As a result, in May 2023, Kyowa Kirin decided to discontinue development of zandelisib in Japan. The discontinuation of zandelisib in Japan was a business decision by Kyowa Kirin based on the most recent regulatory guidance from the PMDA and is not related to the zandelisib clinical data generated to date.

In light of Kyowa Kirin’s decision to discontinue development of zandelisib in Japan, the parties intend to terminate the global license, development and commercialization agreement executed in April 2020.

We and Kyowa Kirin have begun closing all ongoing zandelisib clinical studies outside of Japan, including the Phase 3 COASTAL trial, the Phase 2 TIDAL trial, and the Phase 2 CORAL trial. Depending on the achievement of certain regulatory and commercial milestones in Japan, we may be eligible for additional payments from Kyowa Kirin under the current agreement.

In December 2022, we announced a plan to streamline our organization towards the continued clinical development of voruciclib and

ME-344.

As a result, we initiated a staggered workforce reduction, initially affecting 28 employees in December 2022 (representing approximately

% of our workforce

) and an additional 14 employees in April 2023. In connection with the reduction in force, we incurred termination costs, which include severance, benefits, and related costs of approximate

ly $

2.4

million, of which $

1.8

million was research and development expense and $

0.6

million was general and administrative expense.

Liquidity

We have accumulated losses of $

396.0

million since inception and expect to incur operating losses and generate negative cash flows from operations for the foreseeable future. As of

March

31, 202

, we had $

112.0

million

in cash and cash equivalents and short-term investments. We believe that these resources will be sufficient to meet our obligations and fund our liquidity and capital expenditure requirements for at least the next 12 months from the issuance of these financial statements. Our current business operations are focused on continuing the clinical development of our drug candidates. Changes to our research and development plans or other changes affecting our operations and operating expenses may affect actual future use of existing cash resources. We cannot determine with certainty costs associated with ongoing and future clinical trials or the regulatory approval process. The duration, costs and timing associated with the development of our

product

candidates will depend on a variety of factors, including uncertainties associated with the results of our clinical trials.

To date, we have obtained cash and funded our operations primarily through equity financings and license agreements. In order to continue the development of our drug candidates, at some point in the future we expect to pursue one or more capital transactions, whether through the sale of equity securities, debt financing, license agreements or entry into strategic partnerships. There can be no assurance that we will be able to continue to raise additional capital in the future.

Basis of Presentation

The accompanying unaudited condensed consolidated financial statements include the accounts of MEI Pharma, Inc. and our wholly owned subsidiary, Meadow Merger Sub, Inc. We have eliminated all significant intercompany accounts and transactions in consolidation. The condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the U.S. (“U.S. GAAP”) for interim financial information and in accordance with the instructions to Form

10-Q

and Article 10 of Regulation

S-X.

Accordingly, the accompanying financial statements do not include all of the information and notes required by U.S. GAAP for complete financial statements. In the opinion of management, the accompanying consolidated financial statements reflect all adjustments (consisting of normal recurring adjustments) that are necessary for a fair statement of the financial position, results of operations and cash flows for the periods presented.

The accompanying unaudited condensed consolidated financial statements for the quarterly period ended March 31, 2023 should be read in conjunction with the audited financial statements and notes thereto as of and for the fiscal year ended June 30, 2022, included in our Annual Report on Form

10-K

filed with the Securities and Exchange Commission on September 8, 2022 (“2022 Annual Report”). Interim results are not necessarily indicative of results for a full year.

Use of Estimates

The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and disclosures made in the accompanying notes to the consolidated financial statements. We use estimates that affect the reported amounts (including assets, liabilities, revenues and expenses) and related disclosures. Actual results could materially differ from those estimates.

Fair Value Measurements

Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs. The fair value hierarchy based on three levels of inputs, of which the first two are considered observable and the last unobservable, that may be used to measure fair value is as follows:

•

Level 1 – Observable inputs such as quoted prices in active markets for identical assets or liabilities.

•

Level 2 – Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities.

•

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.

Revenue Recognition

Revenues from Customers

In accordance with Accounting Standards Codification (“ASC”) Topic 606,

Revenue from Contracts with Customers

(“Topic 606”),

we recognize revenue when control of the promised goods or services is transferred to our customers, in an amount that reflects the consideration we expect to be entitled to in exchange for those goods or services. For enforceable contracts with our customers, we first identify the distinct performance obligations – or accounting units – within the contract. Performance obligations are commitments in a contract to transfer a distinct good or service to the customer.

Payments received under commercial arrangements, such as licensing technology rights, may include

non-refundable

fees at the inception of the arrangements, milestone payments for specific achievements designated in the agreements, and royalties on the sale of products. At the inception of arrangements that include milestone payments, we use judgment to evaluate whether the milestones are probable of being achieved and we estimate the amount to include in the transaction price using the most likely method. If it is probable that a significant revenue reversal will not occur, the estimated amount is included in the transaction price. Milestone payments that are not within our or the licensee’s control, such as regulatory approvals, are not included in the transaction price until those approvals are received. At the end of each reporting period, we

re-evaluate

the probability of achievement of development milestones and any related constraint and, as necessary, we adjust our estimate of the overall transaction price.

We may enter into arrangements that consist of multiple performance obligations. Such arrangements may include any combination of our deliverables. To the extent a contract includes multiple promised deliverables, we apply judgment to determine whether promised deliverables are capable of being distinct and are distinct in the context of the contract. If these criteria are not met, the promised deliverables are accounted for as a combined performance obligation. For arrangements with multiple distinct performance obligations, we allocate variable consideration related to our

50-50

Stand-alone selling price is the price at which we would sell a promised good or service separately to the customer. When not directly observable, we typically estimate the stand-alone selling price for each distinct performance obligation. Variable consideration that relates specifically to our efforts to satisfy specific performance obligations is allocated entirely to those performance obligations. Other components of the transaction price are allocated based on the relative stand-alone selling price, over which management has applied significant judgment. We develop assumptions that require judgment to determine the stand-alone selling price for license-related performance obligations, which may include forecasted revenues, development timelines, reimbursement rates for personnel costs, discount rates and probabilities of technical, regulatory and commercial success. We estimate stand-alone selling price for research and development performance obligations by forecasting the expected costs of satisfying a performance obligation plus an appropriate margin.

In the case of a license that is a distinct performance obligation, we recognize revenue allocated to the license from

non-refundable,

up-front

fees at the point in time when the license is transferred to the licensee and the licensee can use and benefit from the license. For licenses that are bundled with other distinct or combined obligations, we use judgment to assess the nature of the performance obligation to determine whether the performance obligation is satisfied over time or at a point in time and, if over time, the appropriate method of measuring progress for purposes of recognizing revenue. If the performance obligation is satisfied over time, we evaluate the measure of progress each reporting period and, if necessary, adjust the measure of performance and related revenue recognition.

The selection of the method to measure progress towards completion requires judgment and is based on the nature of the products or services to be provided. Revenue is recorded proportionally as costs are incurred. We

generally use the

cost-to-cost

measure of progress because it best depicts the transfer of control to the customer which occurs as we incur costs. Under the

cost-to-cost

measure of progress, the extent of progress towards completion is measured based on the ratio of costs incurred to date to the total estimated costs at completion of the performance obligation (an “input method” under Topic 606). We use judgment to estimate the total cost expected to complete the research and development performance obligations, which include subcontractors’ costs, labor, materials, other direct costs and an allocation of indirect costs. We evaluate these cost estimates and the progress each reporting period and, as necessary, we adjust the measure of progress and related revenue recognition.

For arrangements that include sales-based or usage-based royalties, we recognize revenue at the later of (i) when the related sales occur or (ii) when the performance obligation to which some or all of the royalty has been allocated has been satisfied or partially satisfied. To date, we have not recognized any sales-based or usage-based royalty revenue from license agreements.

In connection with our License, Development and Commercialization Agreement (the “Kyowa Kirin Commercialization Agreement”) with Kyowa Kirin, we perform development services related to our

50-50

cost sharing arrangement for which revenue is recognized over time. Additionally, we perform services for Kyowa Kirin at their request, the costs of which are fully reimbursed to us. We record the reimbursement for such pass through services as revenue

100

of reimbursed costs, as control of the additional services for Kyowa Kirin is transferred at the time we incur such costs. The costs of these services are recognized in the Condensed Consolidated Statements of Operations as research and development expense.

We recognized revenue associated with the Kyowa Kirin Commercialization

Agreement

for the periods presented (in thousands):


	Three Months Ended March 31,				Nine Months Ended March 31,
	2023		2022		2023		2022

Revenue	$	5,894	$	9,694	$	47,359	$	29,283

Timing of Revenue Recognition:
Services performed over time	$	5,598	$	9,694	$	46,430	$	26,970
Pass through services at a point in time		296		—		929		2,313

	$	5,894	$	9,694	$	47,359	$	29,283

Contract Balances

Accounts receivable are included in “Prepaid expenses and other current assets”, and contract liabilities are included in “Deferred revenue” and “Deferred revenue, long-term” on our Condensed Consolidated Balance Sheets.

The following table presents changes in accounts receivable, unbilled receivables and contract liabilities accounted for under Topic 606 for the periods presented (in thousands):


	Nine Months Ended March 31,
	202 3			202 2
Accounts receivable
Accounts receivable, beginning of period	$	—		$	—
Amounts billed		23,507			45,927
Payments received		(23,507	)		(45,927	)

Accounts receivable, end of period	$	—		$	—

Unbilled receivables
Unbilled receivables, beginning of period	$	10,044		$	7,582
Billable amounts		18,043			46,791
Amounts billed		(23,507	)		(45,927	)

Unbilled receivables, end of period	$	4,580		$	8,446

Contract liabilities
Contract liabilities, beginning of period	$	30,900		$	14,677
Payments received		—			20,000
Revenue recognized		(4,145	)		(2,513	)
Revenue recognized from change in estimate for performance obligations that are being closed		(16,565	)		—
Revenue recognized for performance obligations that will no longer commence		(8,607	)		—

Contract liabilities, end of period	$	1,583		$	32,164

The timing of revenue recognition, invoicing and cash collections results in billed accounts receivable and unbilled receivables and deferred revenue (contract liabilities). We invoice our customers in accordance with agreed-upon contractual terms, typically at periodic intervals or upon achievement of contractual milestones. Invoicing may occur subsequent to revenue recognition, resulting in unbilled receivables. We may receive advance payments from our customers before revenue is recognized, resulting in contract liabilities. The unbilled receivables and deferred revenue reported on the Condensed Consolidated Balance Sheets relate to the Kyowa Kirin Commercialization Agreement.

As of March 31, 2023 and June 30, 2022, we had

66.1

million and $

95.4

million, respectively, of deferred revenue associated with the

Kyowa Kirin

Commercialization Agreement, of which $

64.5

million relates to the U.S. license which is a unit of account under the scope of ASC Topic 808,

Collaborative Arrangements

(“Topic

808”) and is not a performance obligation under Topic 606. The remaining balance of deferred

revenue as of March 31, 2023 and June 30, 2022

of $

1.6

million and $

30.9

million,

respectively, relates to the development services performance obligations which are under the scope of Topic 606. The decrease in deferred revenue comes as a result of our winding down of all zandelisib studies outside of Japan. We updated our estimated costs to complete each of the performance obligations, resulting in a higher progress towards completion based on the ratio of costs incurred to date to the total estimated costs. Additionally, during the three months ended December 31, 2022, we recognized revenue related to

non-refundable

payments for performance obligations that have not commenced and will no longer be initiated.

Our contract liabilities accounted for under Topic 606 relate to the amount of initial upfront consideration that was allocated to the development services performance obligations. Contract liabilities are recognized over the duration of the performance obligations based on the costs incurred relative to total expected costs.

Revenues from Collaborators

At contract inception, we assess whether the collaboration arrangements are within the scope of Topic 808 to determine whether such arrangements involve joint operating activities performed by parties that are both active participants in the activities and exposed to significant risks and rewards dependent on the commercial success of such activities. This assessment is performed based on the responsibilities of all parties in the arrangement. For collaboration arrangements within the scope of Topic 808 that contain multiple units of account, we first determine which units of account within the arrangement are within the scope of Topic 808 and which elements are within the scope of Topic 606. For units of account within collaboration arrangements that are accounted for pursuant to Topic 808, an appropriate recognition method is determined and applied consistently, by analogy to authoritative accounting literature. For elements of collaboration arrangements that are accounted for pursuant to Topic 606, we recognize revenue as discussed above. Consideration received that does not meet the requirements to satisfy Topic 606 revenue recognition criteria is recorded as deferred revenue in the accompanying Condensed Consolidated Balance Sheets, classified as either short-term or long-term deferred revenue based on our best estimate of when such amounts will be recognized.

Research and Development Costs

Research and development costs are expensed as incurred and include costs paid to third-party contractors to perform research, conduct clinical trials and develop and manufacture drug materials. Clinical trial costs, including costs associated with third-party contractors, are a significant component of research and development expenses. We expense research and development costs based on work performed. In determining the amount to expense, management relies on estimates of total costs based on contract components completed, the enrollment of subjects, the completion of trials, and other events. Costs incurred related to the purchase or licensing of

in-process

research and development for early-stage products or products that are not commercially viable and ready for use, or have no alternative future use, are charged to expense in the period incurred.

Leases

We account for our leases under ASC Topic 842,

Leases

(“Topic 842”). Leases which are identified within the scope of Topic 842 and which have a term greater than one year are recognized on our Condensed Consolidated Balance Sheets as

right-of-use

(“ROU”) assets and lease liabilities. Operating lease liabilities and their corresponding ROU assets are recorded based on the present value of lease payments over the expected remaining lease term. The lease term includes any renewal options and termination options that we are reasonably certain to exercise. Certain adjustments to the

right-of-use

asset may be required for items such as initial direct costs paid or incentives received. The present value of lease payments is determined by using the interest rate implicit in the lease, if that rate is readily determinable; otherwise, we use our incremental borrowing rate. The incremental borrowing rate is determined based on the rate of interest that we would pay to borrow on a collateralized basis an amount equal to the lease payments for a similar term and in a similar economic environment. The interest rate implicit in lease contracts to calculate the present value is typically not readily determinable. As such, significant management judgment is required to estimate the incremental borrowing rate.

Operating lease expense for operating leases is recognized on a straight-line basis over the lease term based on the total lease payments. We have elected the practical expedient to not separate lease and

non-lease

components for our real estate leases. Our

non-lease

components are primarily related to property maintenance, which varies based on future outcomes, and thus is recognized in operating lease expense when incurred.

Share-Based Compensation

Share-based compensation expense stock options and restricted stock units (“RSUs”) granted to employees and directors is recognized in the Condensed Consolidated Statements of Operations based on estimated amounts. The cost of stock options is measured at the grant date, based on the estimated fair value of the stock option using the Black-Scholes valuation model, which incorporates various assumptions, including expected volatility, risk-free interest rate, the expected term of the award and the dividend yield on the underlying stock. Expected volatility is calculated based on the historical volatility of our stock over the expected option life and other appropriate factors. The expected option term is computed using the “simplified” method as permitted under the provisions of ASC Topic 718,

Compensation—Stock Compensation

. We use the simplified method to calculate the expected term of stock options and similar instruments, as we do not have sufficient historical exercise data to provide a reasonable basis upon which to estimate the expected term. Risk-free interest rates are calculated based on continuously compounded risk-free rates for the appropriate term. The dividend yield is assumed to be zero as we have never paid or declared any cash dividends and do not intend to do so in the foreseeable future. For RSUs, we estimate the grant date fair value using our closing stock price on the date of grant. The estimated fair value of stock options and RSUs is amortized on a straight-line basis over the requisite service period, adjusted for actual forfeitures at the time they occur. The requisite service period is generally the time over which our share-based awards vest.

Income Taxes

Our income tax expense consists of current and deferred income tax expense or benefit. Current income tax expense or benefit is the amount of income taxes expected to be payable or refundable for the current year. A deferred income tax asset or liability is recognized for the future tax consequences attributable to tax credits and loss carryforwards and to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. As of March 31, 2023, we have established a valuation allowance to fully reserve our net deferred tax assets. Tax rate changes are reflected in income during the period such changes are enacted. Changes in our ownership may limit the amount of net operating loss carryforwards that can be utilized in the future to offset taxable income.

There have been

material

changes in our unrecognized tax benefits since June 30, 2022, and, as such, the disclosures included in our 2022 Annual Report continue to be relevant for the nine months ended March 31, 2023.

Recent Accounting Pronouncement

In June 2016, the Financial Accounting Standards Board issued Accounting Standards Update

2016-13,

Financial Instruments–Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments

(“ASU

2016-13”),

as amended. The amendments in ASU

2016-13

are effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years, with early adoption permitted. We are currently evaluating the impact that adoption of ASU

2016-13

will have on our financial statements and related disclosures.

Note 1. The Company and Summary of Significant Accounting Policies

The Company

MEI Pharma, Inc. is a late-stage pharmaceutical company committed to the development and commercialization of novel cancer therapies intended to improve outcomes for patients. Our portfolio of drug candidates includes three clinical-stage assets, including zandelisib (f/k/a

ME-401),

currently in multiple ongoing clinical studies intended to support marketing applications with the

U.S. Food and Drug Administration

(“FDA”) and other regulatory authorities globally. Our common stock is listed on the Nasdaq Capital Market under the symbol “

MEIP

.”

On April 14, 2023, we amended our Certificate of Incorporation to effect a combination of our issued and outstanding common stock at a ratio of one-for-twenty (“Reverse Stock Split”). The par value and authorized shares of our common stock were not adjusted as a result of the Reverse Stock Split. The Reverse Stock Split was effective on April 14, 2023. All historical share and per share amounts have been adjusted to reflect the Reverse Stock Split for all periods presented. All stock options, restricted stock units and warrants outstanding were ratably adjusted to give effect to the Reverse Stock Split.

Clinical Development Programs

•

zandelisib (f/k/a

ME-401),

an oral phosphatidylinositol

3-kinase

(“PI3K”) delta inhibitor;

•

voruciclib, an oral cyclin-dependent kinase (“CDK”) 9 inhibitor; and

•

ME-344,

a mitochondrial inhibitor targeting the oxidative phosphorylation (“OXPHOS”) complex.

Use of Estimates

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”) requires management to make estimates and assumptions that affect the amounts reported in the financial statements and disclosures made in the accompanying notes to the financial statements. We use estimates that affect the reported amounts (including assets, liabilities, revenues and expenses) and related disclosures. Actual results could materially differ from those estimates.

Liquidity

We have accumulated losses of $374.2 million since inception and expect to incur operating losses and generate negative cash flows from operations for the foreseeable future. As of June 30, 2022, we had $153.3 million in cash, cash equivalents and short-term investments. We believe that these resources will be sufficient to meet our obligations and fund our liquidity and capital expenditure requirements for at least the next 12 months from the issuance of these financial statements. Our current business operations are focused on continuing the clinical development of our drug candidates. Changes to our research and development plans or other changes affecting our operating expenses may affect actual future use of existing cash resources. Our research and development expenses are expected to increase in the foreseeable future. We cannot determine with certainty costs associated with ongoing and future clinical trials or the regulatory approval process. The duration, costs and timing associated with the development of our product candidates will depend on a variety of factors, including uncertainties associated with the results of our clinical trials.

Reclassifications

Proceeds from issuance of common stock and payment of issuance costs have been reclassified in the prior year financial statements to conform to the current year financial statement presentation. These changes did not impact previously reported net loss, loss per share, stockholders’ equity, total assets or total cash flows.

Cash and Cash Equivalents

Cash and cash equivalents consist of cash and highly liquid investments with original maturities of three months or less when purchased. Cash is maintained at financial institutions and, at times, balances may exceed federally insured limits. We have not experienced any losses related to these balances.

Short-Term Investments

Short-term investments are marketable securities with maturities greater than three months but less than one year from date of purchase. As of June 30, 2022 and 2021, our short-term investments consisted of $137.5 million and $144.9 million, respectively, in United States, “U.S.”, government securities. The short-term investments held as of June 30, 2022 and 2021 are considered to be “held to maturity” and are carried at amortized cost. As of June 30, 2022 and 2021, the gross unrealized gains and losses were immaterial.

Fair Value Measurements

•

Level 1 — Observable inputs such as quoted prices in active markets for identical assets or liabilities.

•

Level 2 — Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities.

•

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.

Property and Equipment

Property and equipment are stated at cost and depreciated over the estimated useful lives of the assets (generally three to seven years) using the straight-line method. Leasehold improvements are stated at cost and are amortized over the shorter of the estimated useful lives of the assets or the lease term.

Leases

Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 842,

Leases

(“Topic 842”) establishes a

right-of-use

(“ROU”) model that requires a lessee to record a ROU asset and

a lease liability on the Balance Sheets for all leases with terms longer than 12 months. Leases are classified as either finance or operating, with classification affecting the pattern of expense recognition in the income statement. We elected the following as practical expedients: 1) an entity need not reassess whether any expired or existing contracts are or contain leases, 2) an entity need not reassess the lease classification for any expired or existing leases, and 3) an entity need not reassess initial direct costs for any existing leases.

Rent expense for operating leases is recognized on a straight-line basis over the lease term based on the total lease payments. We have elected the practical expedient to not separate lease and

non-lease

components for our real estate leases. Our

non-lease

components are primarily related to property maintenance, which varies based on future outcomes, and thus is recognized in rent expense when incurred.

Revenue Recognition

Revenue from Customers

In accordance with ASC Topic 606,

Revenue from Contracts with Customers

(“Topic 606”), we recognize revenue when control of the promised goods or services is transferred to our customers, in an amount that reflects the consideration we expect to be entitled to in exchange for those goods or services. For enforceable contracts with our customers, we first identify the distinct performance obligations – or accounting units – within the contract. Performance obligations are commitments in a contract to transfer a distinct good or service to the customer.

Payments received under commercial arrangements, such as licensing technology rights, may include

non-refundable

fees at the inception of the arrangements, milestone payments for specific achievements designated in the agreements, and royalties on the sale of products. At the inception of arrangements that include milestone payments, we use judgment to evaluate whether the milestones are probable of being achieved, and we estimate the amount to include in the transaction price using the most likely method. If it is probable that a significant revenue reversal will not occur, the estimated amount is included in the transaction price. Milestone payments that are not within our or the licensee’s control, such as regulatory approvals, are not included in the transaction price until those approvals are received. At the end of each reporting period, we

re-evaluate

the probability of achievement of development milestones and any related constraint and, as necessary, we adjust our estimate of the overall transaction price.

50-50

cost share for development services directly to the associated performance obligation and then allocate the remaining consideration among the performance obligations based on their relative stand-alone selling price. Stand-alone selling price is the price at which we would sell a promised good or service separately to the customer. When not directly observable, we typically estimate the stand-alone selling price for each distinct performance obligation. Variable consideration that relates specifically to our efforts to satisfy specific performance obligations is allocated entirely to those performance obligations. Other components of the transaction price are allocated based on the relative stand-alone selling price, over which management has applied significant judgment. We develop assumptions that require judgment to determine the stand-alone selling price for license-related performance obligations, which may include forecasted revenues, development timelines, reimbursement rates for personnel costs, discount rates and probabilities of technical, regulatory and commercial success. We estimate stand-alone selling price for research and development performance obligations by forecasting the expected costs of satisfying a performance obligation plus an appropriate margin.

In the case of a license that is a distinct performance obligation, we recognize revenue allocated to the license from

non-refundable,

up-front

fees at the point in time when the license is transferred to the licensee and

the licensee can use and benefit from the license. For licenses that are bundled with other distinct or combined obligations, we use judgment to assess the nature of the performance obligation to determine whether the performance obligation is satisfied over time or at a point in time and, if over time, the appropriate method of measuring progress for purposes of recognizing revenue. If the performance obligation is satisfied over time, we evaluate the measure of progress each reporting period and, if necessary, adjust the measure of performance and related revenue recognition. From time to time, we perform additional services for Kyowa Kirin Co., Ltd. (“KKC”) at their request, the costs of which are fully reimbursed to us. The cost of these services is recognized in the Statements of Operations as research and development expense.

cost-to-cost

measure of progress because it best depicts the transfer of control to the customer which occurs as we incur costs. Under the

cost-to-cost

We recognized revenue associated with the following license agreements for the periods presented (in thousands):


	Years Ended June 30,
	2022		2021		2020
License Agreement:
KKC Commercialization Agreement	$	40,697	$	34,356	$	26,386
Helsinn License Agreement		—		440		1,370

	$	40,697	$	34,796	$	27,756

Timing of Revenue Recognition:
Development services performed over time	$	37,304	$	31,302	$	6,768
Pass through services at a point in time		3,393		3,494		—
License transferred at a point in time		—		—		20,988

	$	40,697	$	34,796	$	27,756

Based on the characteristics of the Helsinn License Agreement, we recognized revenue based on the extent of progress towards completion of the performance obligations. The performance obligations under the Helsinn License Agreement were completed in June 2021, and the Helsinn License Agreement was terminated in November 2021.

Contract Balances

Accounts receivable are included on our Balance Sheets in “Prepaid expenses and other current assets”, and contract liabilities are included in “Deferred revenue” and “Deferred revenue, long-term” in our Balance Sheets. The following table presents changes in accounts receivable, unbilled receivables and contract liabilities accounted for under Topic 606 for the periods presented (in thousands):


	Years Ended June 30,
	2022			2021
Accounts receivable
Accounts receivable, beginning of year	$	—		$	83
Amounts billed		54,611			25,682
Payments received		(54,611	)		(25,765	)

Accounts receivable, end of year	$	—		$	—

Unbilled receivables
Unbilled receivables, beginning of year	$	7,582		$	2,858
Billable amounts		56,816			30,406
Amounts billed		(54,354	)		(25,682	)

Unbilled receivables, end of year	$	10,044		$	7,582

Contract liabilities
Contract liabilities, beginning of year	$	14,677		$	19,108
Revenue recognized		(3,777	)		(4,798	)
Payments received		20,000			367

Contract liabilities, end of year	$	30,900		$	14,677

The timing of revenue recognition, invoicing and cash collections results in billed accounts receivable and unbilled receivables (contract assets) and deferred revenue (contract liabilities). We invoice our customers in accordance with agreed-upon contractual terms, typically at periodic intervals or upon achievement of contractual milestones. Invoicing may occur subsequent to revenue recognition, resulting in unbilled receivables. We may receive advance payments from our customers before revenue is recognized, resulting in contract liabilities. The unbilled receivables and deferred revenue reported on the Balance Sheets relate to the KKC Commercialization Agreement.

As of June 30, 2022 and 2021, we had unbilled receivables of $10.0 million and $7.6 million, respectively, related to our remaining performance obligations under the KKC Commercialization Agreement. Our unbilled receivables are comprised of amounts that are billable based on the contractual provisions of the license agreement but not yet billed.

As of June 30, 2022 and 2021, we had $95.4 million and $79.2 million, respectively, of deferred revenue associated with the KKC Commercialization Agreement, of which $64.5 million relates to the U.S. license which is a unit of account under the scope of ASC Topic 808,

Collaborative Arrangements

(“Topic 808”) and is not a performance obligation under Topic 606. The remaining balance of deferred revenue as of June 30, 2022 and 2021 of $30.9 million and $14.7 million, respectively, relates to the development services performance obligations which are under the scope of Topic 606.

Revenue from Collaborators

At contract inception, we assess whether the collaboration arrangements are within the scope of Topic 808, to determine whether such arrangements involve joint operating activities performed by parties that are both active participants in the activities and exposed to significant risks and rewards dependent on the commercial success of such activities. This assessment is performed based on the responsibilities of all parties in the arrangement. For collaboration arrangements within the scope of Topic 808 that contain multiple units of account, we first determine which units of account within the arrangement are within the scope of Topic 808 and which elements are within the scope of Topic 606. For units of account within collaboration arrangements that are accounted for pursuant to Topic 808, an appropriate recognition method is determined and applied consistently, by analogy to authoritative accounting literature. For elements of collaboration arrangements that are accounted for pursuant to Topic 606, we recognize revenue as discussed above. Consideration received that does not meet the requirements to satisfy Topic 606 revenue recognition criteria is recorded as deferred revenue in the accompanying Balance Sheets, classified as either current or long-term deferred revenue based on our best estimate of when such amounts will be recognized.

Cost of Revenue

Cost of revenue primarily includes external costs paid to third party contractors to perform research, conduct clinical trials and develop and manufacture drug materials, and internal compensation and related personnel expenses to support our research and development performance obligations associated with the Helsinn License Agreement which was terminated in November 2021.

Research and Development

Research and development costs are expensed as incurred and include costs paid to third party contractors to perform research, conduct clinical trials and develop and manufacture drug materials. Clinical trial costs, including costs associated with third party contractors, are a significant component of research and development expenses. We expense research and development costs based on work performed. In determining the amount to expense, management relies on estimates of total costs based on contract components completed, the enrollment of subjects, the completion of trials, and other events. Costs incurred related to the purchase or licensing of

in-process

research and development for early-stage products or products that are not commercially viable and ready for use, or have no alternative future use, are charged to expense in the period incurred.

Share-Based Compensation

Share-based compensation expense for stock options and restricted stock units (“RSUs”) granted to employees and directors is recognized in the Statements of Operations based on estimated amounts. The cost of stock options is measured at the grant date, based on the estimated fair value of the stock option using the Black-Scholes valuation model, which incorporates various assumptions including expected volatility, risk-free interest rate, the expected term of the award and the dividend yield on the underlying stock. Expected volatility is calculated based on the historical volatility of our stock over the expected option life and other appropriate factors. The expected option term is computed using the “simplified” method as permitted under the provisions of ASC

718-10-S99.

We use the simplified method to calculate the expected term of share options and similar instruments as we do not have sufficient historical exercise data to provide a reasonable basis upon which to estimate the expected term. Risk-free interest rates are calculated based on continuously compounded risk-free rates for the appropriate term. The dividend yield is assumed to be zero as we have never paid or declared any cash dividends and does not intend to do so in the foreseeable future. For RSUs, we estimate the grant date fair value using our closing stock price on the date of grant. The estimated fair value of stock options and RSUs is amortized on a straight-line basis over the requisite service period, adjusted for actual forfeitures at the time they occur. The requisite service period is generally the time over which our share-based awards vest.

Interest and Dividend Income

Interest on cash balances is recognized when earned. Dividend income is recognized when the right to receive the payment is established.

Income Taxes

Our income tax expense consists of current and deferred income tax expense or benefit. Current income tax expense or benefit is the amount of income taxes expected to be payable or refundable for the current year. A deferred income tax asset or liability is recognized for the future tax consequences attributable to tax credits and loss carryforwards and to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. As of June 30, 2022 and 2021, we have established a valuation allowance to fully reserve our net deferred tax assets. Tax rate changes are reflected in income during the period such changes are enacted. Changes in our ownership may limit the amount of net operating loss carryforwards that can be utilized in the future to offset taxable income.

The FASB Topic on income taxes prescribes a recognition threshold and measurement attribute criteria for the financial statement recognition and measurement of tax positions taken or expected to be taken in a tax return. For those benefits to be recognized, a tax position must be

more-likely-than-not

to be sustained upon examination by taxing authorities. An uncertain income tax position will not be recognized if it has less than a 50% likelihood of being sustained. There were no unrecognized tax benefits as of June 30, 2022 and 2021.

Net Loss Per Share

Basic and diluted net loss per share are computed using the weighted-average number of shares of common stock outstanding during the period, less any shares subject to repurchase or forfeiture. There were no shares of common stock subject to repurchase or forfeiture for the years ended June 30, 2022, 2021 and 2020. Our potentially dilutive shares, which include outstanding stock options, restricted stock units, and warrants, are considered to be common stock equivalents and are only included in the calculation of diluted net loss per share when their effect is dilutive. The assessment of dilution is made on a quarterly basis and therefore the annual determination of diluted net loss per share only includes those quarters in which the potential common stock equivalents were determined to be dilutive.

The following table presents the calculation of net loss used to calculate basic and diluted loss per share for the periods presented (in thousands):


	Years Ended June 30,
	2022			2021			2020
Net loss—basic	$	(54,454	)	$	(41,314	)	$	(47,173	)
Change in fair value of warrant liability		(8,046	)		(27,394	)		—

Net loss—diluted	$	(62,500	)	$	(68,708	)	$	(47,173	)

Shares used in calculating net loss per share for the periods presented was determined as follows (in thousands):


	Years Ended June 30,
	2022		2021		2020
Weighted average shares used in calculating basic net loss per share		6,224		5,626		4,554
Effect of potentially dilutive common shares from equity awards and liability-classified warrants		33		98		—

Weighted average shares used in calculating diluted net loss per share		6,257		5,724		4,554

The following potentially dilutive shares have been excluded from the calculation of net loss per share for the periods presented because of their anti-dilutive effect (in thousands):


	Years Ended June 30,
	2022		2021		2020
Stock options		1,024		794		552
Warrants		402		201		803
Restricted stock units		11		21		—

Total anti-dilutive shares		1,437		1,016		1,355

Recent Account Pronouncement

In June 2016, the FASB issued ASU

2016-13,

as amended. The amendments in ASU

2016-13

require, among other things, financial assets measured at amortized cost basis to be presented at the net amount expected to be collected as compared to previous U.S. GAAP which delayed recognition until it was probable a loss had been incurred. The amendments in this standard are effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years, with early adoption permitted. We are currently evaluating the impact that adoption of ASU

2016-13

will have on our financial statements and related disclosures.

The Company and Summary of Significant Accounting Policies

4. Significant Accounting Policies

Our significant accounting policies are described in Note 2, “Summary of Significant Accounting Policies,” in “Notes to Consolidated Financial Statements” in our 2022 Annual Report on Form

10-K.

Segment Information

We operate in one business segment, which focuses on drug development. We make operating decisions based upon the performance of the enterprise as a whole and utilize our consolidated financial statements for decision making.

Basic and Diluted Net Loss per Common Share

share is based upon the weighted average number of common shares outstanding during the period plus the effect of additional weighted average common equivalent shares outstanding during the period when the effect of adding such shares is dilutive. Common equivalent shares result from the assumed exercise of outstanding stock options and the exercise of outstanding warrants (the proceeds of which are then assumed to have been used to repurchase outstanding stock using the treasury stock method) and the vesting of restricted shares of common stock. In addition, the assumed proceeds under the treasury stock method include the average unrecognized compensation expense of stock options that are

in-the-money.

This results in the “assumed” buyback of additional shares, thereby reducing the dilutive impact of stock options. The

two-class

method is used for outstanding warrants as such warrants are considered to be participating securities, and this method is more dilutive than the treasury stock method. The following outstanding shares of common stock equivalents were excluded from the computation of net loss per share attributable to common stockholders for the periods presented because including them would have been antidilutive:


	At March 31,
	2023		2022
Stock options		14,199,758		14,538,334
Non-vested restricted stock units		2,929,149		50,000

New Accounting Pronouncements

In June 2016, the Financial Accounting Standards Board, or FASB, issued Accounting Standard Update, or ASU, No.

2016-13,

Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Statements

, or ASU

No. 2016-13,

which requires that credit losses be reported using an expected losses model rather than the incurred losses model that was previously used, and it establishes additional disclosure requirements related to credit risks. For

available-for-sale

debt securities with expected credit losses, ASU

No. 2016-13

requires allowances to be recorded instead of reducing the amortized cost of the investment. In November 2019, the FASB issued ASU

2019-10,

Financial Instruments—Credit Losses (Topic 326), Derivatives and Hedging (Topic 815), and Leases (Topic 842): Effective Dates

, whereby the effective date of ASU

No. 2016-13

for smaller reporting companies was deferred to annual reporting periods beginning after December 15, 2022, including interim periods within those annual reporting periods, and early adoption was still permitted. ASU

No. 2016-13

is required to be applied using a modified-retrospective approach, which requires a cumulative-effect adjustment to retained earnings as of the beginning of the period of adoption. We adopted this standard effective January 1, 2023 and our application of the standard did not result in a cumulative-effect adjustment.

In August 2020, the FASB issued ASU No.

2020-06,

Debt—Debt with Conversion and Other Options (Subtopic

470-20)

and Derivatives and Hedging—Contracts in Entity’s Own Equity (Subtopic

815-40):

Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity

, or ASU

No. 2020-06,

which simplifies the guidance on an issuer’s accounting for convertible instruments and contracts in its own equity. The provisions of ASU

No. 2020-06

are applicable for fiscal years beginning after December 15, 2023, with early adoption permitted no earlier than fiscal years beginning after December 15, 2020. We are currently evaluating the impact of ASU

No. 2020-06

on our consolidated financial statements and related disclosures.

2. Summary of Significant Accounting Policies

Basis of Presentation

These consolidated financial statements include the accounts of Infinity and its wholly-owned subsidiaries. We have eliminated all significant intercompany accounts and transactions in consolidation.

The preparation of consolidated financial statements in accordance with generally accepted accounting principles requires our management to make estimates and judgments that may affect the reported amounts of assets, liabilities, revenues and expenses, and related disclosure of contingent assets and liabilities. On an ongoing basis, we evaluate our estimates and judgments. We base our estimates on historical experience and on various other assumptions that are believed to be reasonable, the results of which form the basis for making judgments about the carrying values of assets and liabilities. Actual results may differ from these estimates under different assumptions or conditions.

Segment Information

Cash Equivalents and

Available-For-Sale

Securities

Cash equivalents consist of money market funds. We consider all highly liquid investments with maturities of three months or less at the time of purchase to be cash equivalents. Cash equivalents are stated at fair value. They are also readily convertible to known amounts of cash and have such short-term maturities that each presents insignificant risk of change in value due to changes in interest rates. Our classification of cash equivalents is consistent with prior periods.

From time to time we invest our cash in short-term marketable securities. We determine the appropriate classification of marketable securities at the time of purchase and

re-evaluate

such designation at each balance sheet date, if applicable. Typically, the marketable securities in which we invest have been classified as

“available-for-sale.” We

carry

available-for-sale

securities at fair value. Unrealized gains and losses on

available-for-sale

debt securities are reported in accumulated other comprehensive (loss) income, which is a separate component of stockholders’ equity. At various points during the years ended December 31, 2022 and 2021, we owned marketable securities that were classified as

available-for-sale.

We did not own any such securities as of December 31, 2022 or 2021.

We adjust the cost of

available-for-sale

debt securities for amortization of premiums and accretion of discounts to maturity. We include such amortization and accretion in investment and other income. The cost of securities sold is based on the specific identification method. We include in investment income interest and dividends on securities classified as

available-for-sale.

We conduct periodic reviews to identify and evaluate each

available-for-sale

debt security that is in an unrealized loss position in order to determine whether an other-than-temporary impairment exists. An unrealized loss exists when the current fair value of an individual security is less than its amortized cost basis. For

available-for-sale

debt securities in an unrealized loss position, we perform an analysis to assess whether we intend to sell or whether we would more likely than not be required to sell the security before the expected recovery of the amortized cost basis. Where we intend to sell a security, or may be required to do so, the security’s decline in fair value is deemed to be other-than-temporary, and the full amount of the unrealized loss is recorded within earnings as an impairment loss. Unrealized losses on

available-for-sale

debt securities that are determined to be temporary, and not related to credit loss, are recorded, net of tax, in accumulated other comprehensive loss.

Regardless of our intent to sell a security, we perform additional analysis on all securities in an unrealized loss position to evaluate losses associated with the creditworthiness of the security. Credit losses are identified where we do not expect to receive cash flows sufficient to recover the amortized cost basis of a security and are recorded within earnings as an impairment loss.

Liquidity and Going Concern

As of December 31, 2022, we had cash and cash equivalents of $38.3 million. We have primarily incurred operating losses since inception and have relied on our ability to fund our operations through collaboration and license arrangements, or other strategic arrangements, and through the sale of our common stock.

We expect to continue to spend significant resources to fund the development and potential commercialization of eganelisib, also known as

IPI-549,

an orally administered immuno-oncology product candidate that selectively inhibits the enzyme

phosphoinositide-3-kinase

gamma, or PI3K-gamma, and to incur significant operating losses for the foreseeable future.

As of December 31, 2022, we had an accumulated deficit of $856.0 million and during the year ended December 31, 2022 used $42.4 million in cash and cash equivalents to fund operating activities. We expect to continue to incur substantial operating losses and negative cash flows from operations for the foreseeable future. These conditions raise substantial doubt about our ability to continue as a going concern for at least twelve months from the date these consolidated financial statements are issued on March 28, 2023.

If the Merger is not completed, we will need to raise additional capital in order to successfully execute on our current operating plans to further the development of eganelisib. If the Merger is not completed, we will explore other plans to mitigate the conditions which raise substantial doubt about our ability to continue as a going concern. We consider one of the following courses of action to be the most likely alternatives if the Merger is not completed:

•

Pursue another strategic transaction

•

Wind down the company

Our consolidated financial statements have been prepared on a going concern basis, which contemplates the realization of assets and settlement of liabilities and commitments in the ordinary course of business. The consolidated financial statements do not include any adjustments that might result from the outcome of the conditions described above.

Concentration of Credit Risk

Cash and cash equivalents are primarily maintained with two major financial institutions in the United States. Deposits at banks may exceed the insurance provided on such deposits. Generally, these deposits may be redeemed upon demand and, therefore, bear minimal risk. From time to time the Company invests its cash in other financial instruments that potentially subject us to concentration of credit risk, primarily consisting of

available-for-sale

securities. Our investment policy, which has been approved by our board of directors, limits the amount that we may invest in any one issuer of investments, thereby reducing credit risk concentrations. As of December 31, 2022 and 2021, the Company did not have any cash or cash equivalents invested in

available-for-sale

securities.

Property and Equipment

Property and equipment are stated at cost. Depreciation is recorded using the straight-line method over the estimated useful lives of the applicable assets. Application development costs incurred for computer software developed or obtained for internal use are capitalized. Upon sale or retirement, the cost and related accumulated depreciation are eliminated from the respective account, and the resulting gain or loss, if any, is included in current operations. Amortization of leasehold improvements, building improvements and finance leases is recorded as depreciation expense and included in research and development and general and administrative expense, as applicable. Repairs and maintenance charges that do not increase the useful life of the assets are charged to operations as incurred. Property and equipment are depreciated over the following periods:


Computer equipment and software		3 to 5 years
Leasehold improvements		Shorter of lease term or useful life of asset

Furniture and fixtures		7 to 10 years

Impairment of Long-Lived Assets

We evaluate our long-lived assets for potential impairment. Potential impairment is assessed when there is evidence that events or changes in circumstances have occurred that indicate that the carrying amount of a long-lived asset may not be recovered. Recoverability of these assets is assessed based on undiscounted expected future cash flows from the assets, considering a number of factors, including past operating results, budgets and economic projections, market trends and product development cycles. An impairment in the carrying value of each asset is assessed when the undiscounted expected future cash flows, including its eventual residual value, derived from the asset are less than its carrying value. Impairments, if any, are recognized in earnings. An impairment loss would be recognized in an amount equal to the excess of the carrying amount over the undiscounted expected future cash flows.

Fair Value Measurements

We define fair value as the price that we would receive to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. We determine fair value based on the

assumptions market participants use when pricing the asset or liability. We use a valuation hierarchy for disclosure of the inputs used to measure fair value. This hierarchy prioritizes the inputs into three broad levels. Level 1 inputs, which we consider the highest level inputs, are quoted prices (unadjusted) in active markets for identical assets or liabilities. Level 2 inputs are quoted prices for similar assets and liabilities in active markets or inputs that are observable for the asset or liability, either directly or indirectly through market corroboration, for substantially the full term of the financial instrument. Level 3 inputs are unobservable inputs based on our own assumptions used to measure assets and liabilities at fair value. The classification of a financial asset or liability within the hierarchy is determined based on the lowest level input that is significant to the fair value measurement.

Liabilities Related to Sale of Future Royalties

We treat the liabilities related to sale of future royalties (see Note 9) as debt financings, amortized under the effective interest rate method over the estimated life of the related expected royalty stream. The liabilities related to sale of future royalties and the debt amortization are based on our current estimates of future royalties expected to be paid over the life of the arrangement. We will periodically assess the expected royalty payments using projections from external sources. To the extent our estimates of future royalty payments are greater or less than previous estimates or the estimated timing of such payments is materially different than previous estimates, we will adjust the effective interest rate and recognize related

non-cash

interest expense on a prospective basis.

Non-cash

royalty revenue is reflected as royalty revenue, and

non-cash

amortization of debt is reflected as

non-cash

interest expense in the Consolidated Statements of Operations and Comprehensive Loss.

Leases

We have entered into leases for office space and a data center. As of January 1, 2019, we adopted the provisions of Accounting Standards Codification, or ASC, Topic 842, Leases, or ASC 842. Accordingly, we recorded a

right-of-use

asset and a corresponding lease liability related to our leases. Rights and obligations related to our leases are included within operating lease

right-of-use

assets, accrued expenses and other current liabilities, and operating lease liability, less current portion in the Consolidated Balance Sheets.

We recognize a

right-of-use

asset and a lease liability upon the commencement of a lease that has a term of more than twelve months. We combine lease and nonlease components for our leases. Lease payments included in determining the

right-of-use

asset and lease liability recognized include fixed payments to be paid over the term of the lease, less any lease incentives to be paid or payable to us by the lessor. Variable lease payments are included if they are based on an index or rate. Variable lease payments that are not based on an index or rate are recognized as expense in the period incurred. The lease term is determined at lease commencement, and includes the noncancellable period during which we have the right to use the underlying asset. Any period covered by an option to extend or terminate a lease is also included in the lease term if we are reasonably certain that the option to extend will be exercised or the option to terminate will not be exercised.

Our leases do not provide an implicit rate; therefore, we use an estimate of our incremental borrowing rate based on the information available at the adoption date or lease commencement date in determining the present value of lease payments.

Revenue Recognition

To date, all our revenue has been generated under collaboration agreements, including payments to us of upfront license fees, funding or reimbursement of research and development efforts, milestone payments, if specified objectives are achieved, and royalties on product sales.

We recognize revenue when we transfer goods or services to customers in an amount that reflects the consideration that we expect to receive for those goods or services. These principles are applied using a five-step

model: 1) identify the customer contract; 2) identify the contract’s performance obligations; 3) determine the transaction price; 4) allocate the transaction price to the performance obligations; and 5) recognize revenue when or as a performance obligation is satisfied. We evaluate all promised goods and services within a customer contract and determine which of those are separate performance obligations. This evaluation includes an assessment of whether the good or service is capable of being distinct and whether the good or service is separable from other promises in the contract. When a performance obligation is satisfied, we recognize as revenue the amount of the transaction price, excluding estimates of variable consideration that are constrained, that is allocated to that performance obligation. For contracts that contain variable consideration, such as milestone payments, we estimate the amount of variable consideration by using either the expected value method or the most likely amount method. In making this assessment, we evaluate factors such as the clinical, regulatory, commercial and other risks that must be overcome to achieve the milestone. Each reporting period we

re-evaluate

the probability of achievement of such milestones and any related constraints. We will include variable consideration, without constraint, in the transaction price to the extent it is probable that a significant reversal in the amount of cumulative revenue recognized will not occur when the uncertainty associated with the variable consideration is subsequently resolved.

We recognize sales-based milestones and royalty revenue based upon net sales by the licensee of licensed products in licensed territories, and in the period the sales occur under the sales- and usage-based royalty exception when the sole or predominate item to which the royalty relates is a license to intellectual property.

In the event of an early termination of a collaboration agreement, any contract liabilities would be recognized in the period in which all our obligations under the agreement have been fulfilled.

Research and Development Expense

Research and development expense consists of expenses incurred in performing research and development activities, including salaries and benefits, overhead expenses including facilities expenses, materials and supplies, preclinical expenses, clinical trial and related clinical manufacturing expenses, comparator and combination drug expenses, stock-based compensation expense, depreciation of property and equipment, contract services, and other outside expenses. We also include as research and development expense upfront license payments related to acquired technologies which have not yet reached technological feasibility and have no alternative use. We expense research and development costs as they are incurred. Prepaid comparator and combination drug expenses are capitalized and then recognized as expense when title transfers to us. We have been a party to collaboration agreements in which we were reimbursed for work performed on behalf of the collaborator, as well as one in which we reimbursed the collaborator for work it had performed. We record all appropriate expenses under our collaborations as research and development expense. If the arrangement provides for reimbursement of research and development expenses incurred by us, we evaluate the terms of the arrangement to determine whether the reimbursement should be recorded as revenue or as an offset to research and development expense. If the arrangement provides for us to reimburse the collaborator for research and development expenses or for the achievement of a development milestone for which a payment is due, we record the reimbursement or the achievement of the development milestone as research and development expense.

Stock-based Compensation Expense

We issue stock-based awards to employees, directors, and

non-employees,

generally in the form of stock options, restricted stock units, or RSUs, or as awards under our 2013 Employee Stock Purchase Plan, or ESPP. We measure stock-based compensation cost at the grant date based on the estimated fair value of the award and recognize it as expense over the requisite service period on a straight-line basis. Stock-based compensation costs for

non-employees

are recognized as expense over the vesting period on a ratable basis. The grant date fair value of stock options and awards under our ESPP is measured using the Black-Scholes valuation model, which requires us to make assumptions about the fair value of our common stock on the date of grant. The grant date fair value of RSUs is estimated to be equal to the closing price of our common stock on the date of grant. For

awards with performance conditions, we estimate the likelihood of satisfaction of the performance conditions, which affects the period over which the expense is recognized. When the likelihood of satisfying the performance conditions related to these awards is determined to be probable, we recognize the expense over the requisite service period. We have no awards with market conditions. We recognize forfeitures related to share-based payments as they occur.

Royalty Expense

Royalty expense is recorded when incurred and represents the expense associated with amounts owed to third parties as a result of royalty revenue recognized and the amounts owed by us to Takeda Pharmaceutical Company Limited, or Takeda, in relation to the sale of future royalties (see Note 11).

Income Taxes

We use the liability method to account for income taxes. Deferred tax assets and liabilities are determined based on differences between financial reporting and income tax basis of assets and liabilities, as well as net operating loss and tax credit carryforwards, and are measured using the enacted tax rates and laws that will be in effect when the differences reverse. Deferred tax assets are reduced by a valuation allowance to reflect the uncertainty associated with their ultimate realization. The effect of a change in tax rate on deferred taxes is recognized in income or loss in the period that includes the enactment date.

We use our judgment for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. We recognize any material interest and penalties related to unrecognized tax benefits in income tax expense.

Due to the uncertainty surrounding the realization of the net deferred tax assets in future periods, we have recorded a full valuation allowance against our otherwise recognizable net deferred tax assets as of December 31, 2022 and 2021.

Basic and Diluted Net Loss per Common Share

Basic net loss per share is based upon the weighted average number of common shares outstanding during the period, excluding restricted stock units that have been issued but have not yet vested. Diluted net loss per share is based upon the weighted average number of common shares outstanding during the period plus the effect of additional weighted average common equivalent shares outstanding during the period when the effect of adding such shares is dilutive. Common equivalent shares result from the assumed exercise of outstanding stock options and the exercise of outstanding warrants (the proceeds of which are then assumed to have been used to repurchase outstanding stock using the treasury stock method) and the vesting of restricted shares of common stock. In addition, the assumed proceeds under the treasury stock method include the average unrecognized compensation expense of stock options that are

in-the-money.

This results in the “assumed” buyback of additional shares, thereby reducing the dilutive impact of stock options. The

two-class


	At December 31,
	2022		2021
Stock options		14,663,697		12,689,439
Non-vested restricted stock		2,939,816		50,000

Comprehensive Loss

Comprehensive loss is comprised of net loss and other comprehensive loss. Other comprehensive loss is comprised of unrealized holding gains arising during the period on

available-for-sale

securities that are not other-than-temporarily impaired. During the year ended December 31, 2022, there were no material reclassifications out of accumulated other comprehensive (loss) income.

New Accounting Pronouncements

In June 2016, the Financial Accounting Standards Board, or FASB, issued Accounting Standard Update, or ASU,

No. 2016-13,

Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Statements

, or ASU

No. 2016-13,

which requires that credit losses be reported using an expected losses model rather than the incurred losses model that is currently used, and it establishes additional disclosure requirements related to credit risks. For

available-for-sale

debt securities with expected credit losses, this standard now requires allowances to be recorded instead of reducing the amortized cost of the investment. In November 2019, the FASB subsequently issued ASU

2019-10,

Financial Instruments—Credit Losses (Topic 326), Derivatives and Hedging (Topic 815), and Leases (Topic 842): Effective Dates

, whereby the effective date of this standard for smaller reporting companies was deferred to annual reporting periods beginning after December 15, 2022, including interim periods within those annual reporting periods, and early adoption is still permitted. We adopted this standard effective January 1, 2023 on a prospective basis. The adoption of this standard has not had a material impact on our consolidated financial statements and related disclosures.

In August 2020, the FASB issued ASU

No. 2020-06,

Debt—Debt with Conversion and Other Options (Subtopic

470-20)

and Derivatives and Hedging—Contracts in Entity’s Own Equity (Subtopic

815-40):

Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity

, or ASU

No. 2020-06,

which simplifies the guidance on an issuer’s accounting for convertible instruments and contracts in its own equity. The provisions of ASU

No. 2020-06

on our consolidated financial statements and related disclosures.

In November 2021, the FASB issued ASU

No. 2021-10,

Government Assistance (Topic 832): Disclosures by Business Entities about Government Assistance

, or ASU

No. 2021-10,

which requires additional annual disclosures about transactions with a government that are accounted for by applying a grant or contribution accounting model by analogy. The additional disclosures required by this standard include 1) information about the nature of the transactions and the related accounting policy used to account for the transactions, 2) the financial statement line items that are impacted by the transactions and the amounts applicable to each financial statement line item and 3) significant terms and conditions of the transactions, including commitments and contingencies. We adopted this standard effective January 1, 2022 on a prospective basis. The adoption of the standard has not had a material impact on our consolidated financial statements.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($)	3 Months Ended		9 Months Ended		12 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Mar. 31, 2023	Mar. 31, 2022	Dec. 31, 2022	Jun. 30, 2022	Dec. 31, 2021	Jun. 30, 2021	Jun. 30, 2020
Revenue	$ 5,894,000	$ 9,694,000	$ 47,359,000	$ 29,283,000		$ 40,697,000		$ 34,796,000	$ 27,756,000
Operating expenses:
Research and development	15,104,000	22,318,000	49,880,000	63,802,000		85,641,000		69,398,000	34,065,000
General and administrative	7,181,000	8,934,000	23,163,000	24,769,000		30,540,000		24,414,000	16,717,000
Cost of revenue						0		1,408,000	2,671,000
Total operating expenses	22,285,000	31,252,000	73,043,000	88,571,000		116,181,000		95,220,000	53,453,000
Loss from operations	(16,391,000)	(21,558,000)	(25,684,000)	(59,288,000)		(75,484,000)		(60,424,000)	(25,697,000)
Other income (expense):
Change in fair value of warrant liability	0	12,773,000	1,603,000	20,819,000		20,752,000		18,122,000	(22,870,000)
Interest and dividend income	957,000	60,000	2,282,000	78,000		284,000		510,000	1,395,000
Other expense, net	(4,000)	0	(10,000)	0		(6,000)		486,000	0
Non-cash interest expense (Note 9)	(45)	(45)			$ (180)		$ (180)
Income tax expense						0		(8,000)	(1,000)
Total other income (expense)						21,030,000		19,110,000	(21,476,000)
Net loss	(15,438,000)	(8,725,000)	(21,809,000)	(38,391,000)		(54,454,000)		(41,314,000)	(47,173,000)
Net loss:
Basic	(15,438,000)	(8,725,000)	(21,809,000)	(38,391,000)		(54,454,000)		(41,314,000)	(47,173,000)
Diluted	$ (15,438,000)	$ (8,725,000)	$ (21,809,000)	$ (46,437,000)		$ (62,500,000)		$ (68,708,000)	$ (47,173,000)
Net loss per share:
Basic	$ (2.32)	$ (1.31)	$ (3.27)	$ (6.31)		$ (8.75)		$ (7.34)	$ (10.36)
Diluted	$ (2.32)	$ (1.31)	$ (3.27)	$ (7.58)		$ (9.99)		$ (12)	$ (10.36)
Shares used in computing net loss per share:
Basic	6,663,000	6,653,000	6,663,000	6,080,000		6,224,000		5,626,000	4,554,000
Diluted	6,663,000	6,653,000	6,663,000	6,124,000		6,257,000		5,724,000	4,554,000
Infinity Pharmaceuticals Inc [Member]
Revenue					2,593,000		1,858,000
Royalty revenue	$ 731,000	$ 652,000
Operating expenses:
Research and development	5,853,000	8,990,000			32,411,000		31,647,000
General and administrative	5,944,000	3,676,000			13,463,000		14,174,000
Royalty expense (Note 11)	441,000	393,000			1,563,000		1,120,000
Total operating expenses	12,238,000	13,059,000			47,437,000		46,941,000
Loss from operations	(11,507,000)	(12,407,000)			(44,844,000)		(45,083,000)
Other income (expense):
Other expense, net	507,000	16,000			655,000		1,000
Income tax expense					0		0
Total other income (expense)	462,000	(29,000)			475,000		(179,000)
Net loss	$ (11,045,000)	$ (12,436,000)			$ (44,369,000)		$ (45,262,000)
Net loss per share:
Basic	$ (0.12)	$ (0.14)			$ (0.5)		$ (0.53)
Diluted	$ (0.12)	$ (0.14)			$ (0.5)		$ (0.53)
Shares used in computing net loss per share:
Basic	89,413,486	89,155,311			89,247,785		85,597,264
Diluted	89,413,486	89,155,311			89,247,785		85,597,264
Other comprehensive loss:
Net unrealized holding gains on available-for-sale securities arising during the period	$ 0	$ (20,000)			$ 0		$ 1,000
Comprehensive loss	$ (11,045,000)	$ (12,456,000)			$ (44,369,000)		$ (45,261,000)

Share-based Compensation - Additional Information (Detail)	3 Months Ended		9 Months Ended		12 Months Ended
	Mar. 31, 2023 USD ($) $ / shares shares	Mar. 31, 2022 USD ($) $ / shares shares	Mar. 31, 2023 USD ($) $ / shares shares	Mar. 31, 2022 $ / shares	Dec. 31, 2022 USD ($) PERIOD $ / shares shares	Jun. 30, 2022 USD ($) $ / shares shares	Dec. 31, 2021 USD ($) $ / shares shares	Jun. 30, 2021 USD ($) $ / shares shares	Jun. 30, 2020 USD ($) $ / shares	Jan. 31, 2023 shares	Jan. 01, 2022 shares	May 31, 2021 shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Outstanding Options	1,252,931,000		1,252,931,000			996,700,000		833,427,000
Closing price of common stock \| $ / shares						$ 12.2
Unrecognized compensation expense related to unvested stock options \| $	$ 3,900,000		$ 3,900,000			$ 6,600,000
Expected weighted average period for recognition of compensation expense			1 year 6 months			1 year 8 months 12 days
Expected annual dividend yield			0.00%	0.00%		0.00%		0.00%	0.00%
Weighted-average fair value per share of options granted (in dollars per share) \| $ / shares			$ 7.71	$ 33		$ 31.4		$ 46	$ 32.8
Stock options granted, weighted average exercise price (in dollars per share) \| $ / shares			$ 10.66			$ 51.4
Infinity Pharmaceuticals Inc [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Outstanding Options					14,663,697		12,689,439
Unrecognized compensation expense related to unvested stock options \| $	$ 6,000,000		$ 6,000,000		$ 8,100,000
Expected weighted average period for recognition of compensation expense	1 year 10 months 24 days				2 years
Expected annual dividend yield	0.00%	0.00%
Weighted-average fair value per share of options granted (in dollars per share) \| $ / shares		$ 1.26			$ 1.1		$ 2.69
Aggregate intrinsic value \| $					$ 0		$ 800,000
Related income tax benefits \| $					$ 0		0
Expense related to restructuring activities \| $	$ 1,720,000
Stock options granted (in shares)	0	2,082,324
Stock options granted, weighted average exercise price (in dollars per share) \| $ / shares	$ 1.54				$ 1.36
Total stock-based compensation expense \| $	$ 1,774,000	$ 867,000			$ 3,621,000		$ 2,695,000
Infinity Pharmaceuticals Inc [Member] \| Other Restructuring [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expense related to restructuring activities \| $	$ 821,000
Employee Stock Option
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Outstanding Options						996,700
Closing price of common stock \| $ / shares	$ 4.58		$ 4.58
Total fair value of options vested \| $						$ 9,000,000		$ 6,400,000	$ 5,400,000
Employee Stock Option \| Infinity Pharmaceuticals Inc [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected annual dividend yield							0.00%
Employee Stock Option \| Directors
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation arrangement by share-based payment award, award vesting period			12 months			12 months
Share-based compensation arrangement by share-based payment award, expiration period			10 years			10 years
Employee Stock Option \| Employees
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock option vested percentage			25.00%			25.00%
Share-based compensation arrangement by share-based payment award, award vesting period			36 months			36 months
Share-based compensation arrangement by share-based payment award, expiration period						10 years
Restricted Stock Units (RSUs)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of common stock to be received for each RSUs						1
Restricted Stock Units (RSUs) \| Infinity Pharmaceuticals Inc [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
RSUs granted	0	0
Total stock-based compensation expense \| $	$ 500,000	$ 0
Stock Incentive Plan \| Infinity Pharmaceuticals Inc [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock option vested percentage					25.00%
Share-based compensation arrangement by share-based payment award, award vesting period					3 years
Share-based compensation arrangement by share-based payment award, expiration period					10 years
Percent of shares in each award vesting after three years					75.00%
Equity Incentive Plan Twenty Nineteen \| Infinity Pharmaceuticals Inc [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common stock authorized					12,531,009
Shares available for future grant					2,564,077
Number of additional shares available for future grant					7,744,676
Stock Incentive Plan Twenty Ten \| Infinity Pharmaceuticals Inc [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of additional shares available for future grant					6,309,021
Employee Stock Purchase Plan Twenty Thirteen \| Infinity Pharmaceuticals Inc [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Employee stock purchase plan share purchase offering period					24 months
Employee stock purchase plan number of purchase periods \| PERIOD					4
Employee stock purchase plan share purchase period					6 months
Percentage of common stock purchase price					85.00%
Number of common stock purchased (in shares)					111,155		57,561
Proceeds from purchase of common stock \| $					$ 100,000		$ 100,000
Restricted Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
RSUs granted					2,950,483
RSUs grant date fair value per unit \| $ / shares					$ 1.08
Share based compensation by share based payment arrangement other than options unvested outstanding					2,939,816						50,000
Fair value of RSU's vested \| $					$ (50,000)
Forfeited (in shares)					(10,667)
Unvested, Beginning of the period (in dollars per share) \| $ / shares	$ 1.08	$ 2.93			$ 2.93
Vested (in dollars per share) \| $ / shares					2.93
Forfeited (in dollars per share) \| $ / shares					1.08
Unvested, End of the period (in dollars per share) \| $ / shares					$ 1.08		$ 2.93
Restricted Stock \| Infinity Pharmaceuticals Inc [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Fair value of RSU's vested \| $					$ 0
Vested (in shares)							0
2008 Omnibus Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common stock authorized					1,450,740,000			1,450,740,000
Shares available for future grant	583,468,000		583,468,000			457,733,000
Number of additional shares available for future grant										400,000,000
2008 Omnibus Plan \| Employee Stock Option
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares available for future grant	1,153,116,000		1,153,116,000
Outstanding Options	1,252,931,000		1,252,931,000			878,850
2008 Omnibus Plan \| Restricted Stock Units (RSUs)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number Of Shares For Each Unit Of Restricted Stock						1.25
Inducement Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common stock authorized												125,000,000
Shares available for future grant	25,185,000		25,185,000			7,150
Inducement Plan [Member] \| Employee Stock Option
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares available for future grant	99,815,000		99,815,000
Outstanding Options						117,850

The Company and Summary of Significant Accounting Policies - Schedule of Changes in Contract Assets and Contract Liabilities (Detail) - USD ($) $ in Thousands	9 Months Ended		12 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Jun. 30, 2022	Jun. 30, 2021
Contract with Customer Asset and Liability [Line Items]
Account receivables, beginning	$ 0	$ 0	$ 0	$ 83
Amounts billed	23,507	45,927	54,611	25,682
Payments received	(23,507)	(45,927)	(54,611)	(25,765)
Accounts receivables, end	0	0	0	0
Unbilled receivables, beginning	10,044	7,582	7,582	2,858
Billable amounts	18,043	46,791	56,816	30,406
Amounts billed	(23,507)	(45,927)	(54,354)	(25,682)
Unbilled receivables, end	4,580	8,446	10,044	7,582
Contract liabilities, beginning	30,900	14,677	14,677	19,108
Payments received	0	20,000	20,000	367
Revenue recognized	(4,145)	(2,513)	(3,777)	(4,798)
Revenue recognized from change in estimate for performance obligations that are being closed	(16,565)	0
Revenue recognized for performance obligations that will no longer commence	(8,607)	0
Contract liabilities, end	$ 1,583	$ 32,164	$ 30,900	$ 14,677

Commitments and Contingencies - Additional Information (Detail)		3 Months Ended		9 Months Ended		12 Months Ended						60 Months Ended
	May 09, 2022 $ / shares	Mar. 31, 2023 USD ($)	Mar. 31, 2022 USD ($)	Mar. 31, 2023 USD ($)	Mar. 31, 2022 USD ($)	Dec. 31, 2022 USD ($)	Jun. 30, 2022 USD ($)	Dec. 31, 2021 USD ($)	Jun. 30, 2021 USD ($)	Jul. 31, 2020 USD ($)	Jun. 30, 2020 USD ($)	Aug. 01, 2024	Apr. 03, 2019 USD ($) ft²	Mar. 04, 2019 ft²
Purchase Commitment, Excluding Long-term Commitment [Line Items]
Minimum bid price per share \| $ / shares	$ 1
Minimum Threshold Price \| $ / shares	$ 1
Weighted average remaining lease term (in years)		6 years 8 months 12 days		6 years 8 months 12 days			7 years 4 months 24 days
Weighted average discount rate		7.50%		7.50%			7.50%
Operating lease cost		$ 609,000	$ 377,000	$ 1,826,000	$ 1,130,000		$ 1,583,000		$ 1,507,000		$ 692,000
Operating cash flows from operating leases		567,000	$ 380,000	1,700,000	$ 1,139,000
Total future minimum lease payments		16,943,000		16,943,000			12,906,000
Torreya partners
Purchase Commitment, Excluding Long-term Commitment [Line Items]
Accrued payment for potential future payments		0		$ 0
Transaction fee				20.00%
Torreya partners \| Maximum
Purchase Commitment, Excluding Long-term Commitment [Line Items]
Business Combination, Consideration Transferred				$ 2,000,000
General and administrative \| Torreya partners
Purchase Commitment, Excluding Long-term Commitment [Line Items]
Acquire shares of common stock grant date fair value				500,000
Presage License Agreement
Purchase Commitment, Excluding Long-term Commitment [Line Items]
Accrued payment for potential future payments		0		0			$ 0
Infinity Pharmaceuticals Inc [Member]
Purchase Commitment, Excluding Long-term Commitment [Line Items]
Lessee Operating Lease Option To Extend Term						2 years
Weighted average remaining lease term (in years)						1 year 7 months 6 days		2 years 7 months 6 days
Weighted average discount rate						10.00%		10.00%
Operating lease cost						$ 700,000		$ 700,000
Operating cash flows from operating leases						600,000		700,000
Total future minimum lease payments		800,000		800,000		$ 992,000
Infinity Pharmaceuticals Inc [Member] \| Massachusetts Avenue Cambridge Massachusetts Premises [Member]
Purchase Commitment, Excluding Long-term Commitment [Line Items]
Area of premises leased under lease agreement \| ft²													10,097	10,097
Lease term													5 years	5 years
Monthly base rent expense										$ 47,961
Restricted Cash		$ 7,500		$ 7,500				7,500
Leasehold Improvement, Landlord, Gross													$ 600,000
Infinity Pharmaceuticals Inc [Member] \| Financial Standby Letter of Credit [Member] \| Massachusetts Avenue Cambridge Massachusetts Premises [Member]
Purchase Commitment, Excluding Long-term Commitment [Line Items]
Security Deposit													$ 300,000
Security Deposit Reduced Amount Under Lease Terms								$ 150,000
Infinity Pharmaceuticals Inc [Member] \| Forecast [Member] \| Massachusetts Avenue Cambridge Massachusetts Premises [Member]
Purchase Commitment, Excluding Long-term Commitment [Line Items]
Annual percentage increase of rent expense										3.00%		3.00%

The Company and Summary of Significant Accounting Policies (Tables)

3 Months Ended

9 Months Ended

12 Months Ended

Mar. 31, 2023

Dec. 31, 2022

Jun. 30, 2022

Schedule Of Revenue Associated With License Agreement

We recognized revenue associated with the Kyowa Kirin Commercialization

Agreement

for the periods presented (in thousands):


	Three Months Ended March 31,				Nine Months Ended March 31,
	2023		2022		2023		2022

Revenue	$	5,894	$	9,694	$	47,359	$	29,283

Timing of Revenue Recognition:
Services performed over time	$	5,598	$	9,694	$	46,430	$	26,970
Pass through services at a point in time		296		—		929		2,313

	$	5,894	$	9,694	$	47,359	$	29,283

We recognized revenue associated with the following license agreements for the periods presented (in thousands):


	Years Ended June 30,
	2022		2021		2020
License Agreement:
KKC Commercialization Agreement	$	40,697	$	34,356	$	26,386
Helsinn License Agreement		—		440		1,370

	$	40,697	$	34,796	$	27,756

Timing of Revenue Recognition:
Development services performed over time	$	37,304	$	31,302	$	6,768
Pass through services at a point in time		3,393		3,494		—
License transferred at a point in time		—		—		20,988

	$	40,697	$	34,796	$	27,756

Schedule of Changes in Contract Assets and Contract Liabilities

The following table presents changes in accounts receivable, unbilled receivables and contract liabilities accounted for under Topic 606 for the periods presented (in thousands):


	Nine Months Ended March 31,
	202 3			202 2
Accounts receivable
Accounts receivable, beginning of period	$	—		$	—
Amounts billed		23,507			45,927
Payments received		(23,507	)		(45,927	)

Accounts receivable, end of period	$	—		$	—

Unbilled receivables
Unbilled receivables, beginning of period	$	10,044		$	7,582
Billable amounts		18,043			46,791
Amounts billed		(23,507	)		(45,927	)

Unbilled receivables, end of period	$	4,580		$	8,446

Contract liabilities
Contract liabilities, beginning of period	$	30,900		$	14,677
Payments received		—			20,000
Revenue recognized		(4,145	)		(2,513	)
Revenue recognized from change in estimate for performance obligations that are being closed		(16,565	)		—
Revenue recognized for performance obligations that will no longer commence		(8,607	)		—

Contract liabilities, end of period	$	1,583		$	32,164

The following table presents changes in accounts receivable, unbilled receivables and contract liabilities accounted for under Topic 606 for the periods presented (in thousands):


	Years Ended June 30,
	2022			2021
Accounts receivable
Accounts receivable, beginning of year	$	—		$	83
Amounts billed		54,611			25,682
Payments received		(54,611	)		(25,765	)

Accounts receivable, end of year	$	—		$	—

Unbilled receivables
Unbilled receivables, beginning of year	$	7,582		$	2,858
Billable amounts		56,816			30,406
Amounts billed		(54,354	)		(25,682	)

Unbilled receivables, end of year	$	10,044		$	7,582

Contract liabilities
Contract liabilities, beginning of year	$	14,677		$	19,108
Revenue recognized		(3,777	)		(4,798	)
Payments received		20,000			367

Contract liabilities, end of year	$	30,900		$	14,677

Schedule of Income (Loss) Per Share, Basic and Diluted

The following table presents the calculation of net loss used to calculate basic loss and diluted loss per share (in thousands):


	Three Months Ended March 31,						Nine Months Ended March 31,
	2023			2022			2023			2022
Net loss – basic	$	(15,438	)	$	(8,725	)	$	(21,809	)	$	(38,391	)
Change in fair value of warrant liability		—			—			—			(8,046	)

Net loss – diluted	$	(15,438	)	$	(8,725	)	$	(21,809	)	$	(46,437	)

The following table presents the calculation of net loss used to calculate basic and diluted loss per share for the periods presented (in thousands):


	Years Ended June 30,
	2022			2021			2020
Net loss—basic	$	(54,454	)	$	(41,314	)	$	(47,173	)
Change in fair value of warrant liability		(8,046	)		(27,394	)		—

Net loss—diluted	$	(62,500	)	$	(68,708	)	$	(47,173	)

Calculation of Weighted Average Shares Used to Calculate Basic and Diluted (Loss) Earnings Per Share

Share used in calculating net loss per share was determined as follows (in thousands):


	Three Months Ended March 31,				Nine Months Ended March 31,
	2023		2022		2023		2022
Weighted average shares used in calculating basic net loss per share		6,663		6,653		6,663		6,080
Effect of potentially dilutive common shares from equity awards and liability-classified warrants		—		—		—		44

Weighted average shares used in calculating diluted net loss per share		6,663		6,653		6,663		6,124

Shares used in calculating net loss per share for the periods presented was determined as follows (in thousands):


	Years Ended June 30,
	2022		2021		2020
Weighted average shares used in calculating basic net loss per share		6,224		5,626		4,554
Effect of potentially dilutive common shares from equity awards and liability-classified warrants		33		98		—

Weighted average shares used in calculating diluted net loss per share		6,257		5,724		4,554

Antidilutive Securities

The following table presents weighted average potentially dilutive shares that have been excluded from the calculation of net loss per share because of their anti-dilutive effect (in thousands):


	Three Months Ended March 31,				Nine Months Ended March 31,
	2023		2022		2023		2022
Stock options		1,258		1,020		1,340		1,029
Warrants		905		11		837		12
Restricted stock units		—		803		—		268

Total anti-dilutive shares		2,163		1,834		2,177		1,309

The following potentially dilutive shares have been excluded from the calculation of net loss per share for the periods presented because of their anti-dilutive effect (in thousands):


	Years Ended June 30,
	2022		2021		2020
Stock options		1,024		794		552
Warrants		402		201		803
Restricted stock units		11		21		—

Total anti-dilutive shares		1,437		1,016		1,355

Property and Equipment, Depreciated Periods

Property and equipment are depreciated over the following periods:


Computer equipment and software		3 to 5 years
Leasehold improvements		Shorter of lease term or useful life of asset

Furniture and fixtures		7 to 10 years

Antidilutive Securities

The following outstanding shares of common stock equivalents were excluded from the computation of net loss per share attributable to common stockholders for the periods presented because including them would have been antidilutive:


	At March 31,
	2023		2022
Stock options		14,199,758		14,538,334
Non-vested restricted stock units		2,929,149		50,000


	At December 31,
	2022		2021
Stock options		14,663,697		12,689,439
Non-vested restricted stock		2,939,816		50,000

License Agreements - Additional Information (Detail) - USD ($) $ in Thousands	1 Months Ended	9 Months Ended		12 Months Ended
	Sep. 30, 2017	Mar. 31, 2023	Mar. 31, 2022	Jun. 30, 2022	Jun. 30, 2021	May 31, 2020
Related Party Transaction [Line Items]
Revenue recognized		$ (4,145)	$ (2,513)	$ (3,777)	$ (4,798)
Kyowa Kirin Co
Related Party Transaction [Line Items]
Total upfront payment receivable for grant of rights						$ 100,000
Kyowa Kirin Co \| Potential Payments on Achievement of Development Regulatory and Commercial Milestones \| Maximum
Related Party Transaction [Line Items]
Milestone payment receivable amount				582,500
Presage License Agreement \| Presage Biosciences, Inc.
Related Party Transaction [Line Items]
Compensation payable for grant of rights	$ 4,900
Payment for license	2,900
Presage License Agreement \| Presage Biosciences, Inc. \| Incremental Payment
Related Party Transaction [Line Items]
Compensation payable for grant of rights	2,000
Presage License Agreement \| Presage Biosciences, Inc. \| Potential Payments on Achievement of Development Regulatory and Commercial Milestones
Related Party Transaction [Line Items]
Milestone payment receivable amount	$ 179,000
Kkc Agreements [Member] \| Kyowa Kirin Co
Related Party Transaction [Line Items]
Upfront payment		100,000		100,000
Transaction price relating to the performance obligation		217,000		191,500
Expected milestone payment receivable		20,000		20,000
Estimated development cost sharing recovered through earnings		91,800		66,300
Deferred revenue		5,200		5,200
Revenue recognized		16,600
Revenue related to non-refundable payments for performance obligations		8,600
Kkc Agreements [Member] \| Kyowa Kirin Co \| Ex US License
Related Party Transaction [Line Items]
Revenue recognized		21,000		21,000
License Obligation Account Transaction Price Allocated		64,500		64,500
Kkc Agreements [Member] \| Kyowa Kirin Co \| Development Services
Related Party Transaction [Line Items]
Contract with customer liability non current		1,600		30,900	$ 14,700
Kkc Agreements [Member] \| Kyowa Kirin Co \| Maximum
Related Party Transaction [Line Items]
Estimated development cost sharing recovered through earnings		$ 143,100		$ 234,900

Cash, Cash Equivalents and Available-for-Sale Securities - Additional Information (Detail) - USD ($)	3 Months Ended		12 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Dec. 31, 2022	Dec. 31, 2021	Jun. 30, 2022	Jun. 30, 2021
Cash and cash equivalents	$ 8,812,000				$ 15,740,000	$ 8,543,000
Infinity Pharmaceuticals Inc [Member]
Cash and cash equivalents	25,737,000	$ 53,125,000	$ 38,313,000	$ 80,726,000
Unrealized gains (losses) on cash and cash equivalents	0		0	0
Material realized gain (loss)	$ 0	$ 0	$ 0	$ 0

Strategic Restructuring - Additional Information (Details) $ in Thousands		3 Months Ended	6 Months Ended
	Feb. 22, 2023 POSITION	Mar. 31, 2023 USD ($)	Dec. 31, 2022
Restructuring Cost and Reserve [Line Items]
Restructuring and Related Cost, Number of Positions Eliminated, Period Percent			27.00%
Infinity Pharmaceuticals Inc [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring and Related Cost, Incurred Cost		$ 1,720
Restructuring and Related Cost, Number of Positions Eliminated, Period Percent	13.00%
Restructuring and Related Cost, Number of Positions Eliminated \| POSITION	4
General and Administrative Expense [Member] \| Infinity Pharmaceuticals Inc [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring and Related Cost, Incurred Cost		1,600
Research and Development Expense [Member] \| Infinity Pharmaceuticals Inc [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring and Related Cost, Incurred Cost		$ 100

Pre- Tax loss Jurisdictions (Detail) - USD ($) $ in Thousands	12 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2020
Pre tax Income Loss [Line Items]
Domestic	$ (54,454)	$ (41,306)	$ (47,172)
Foreign	0	0	0
Pre-tax loss	$ (54,454)	$ (41,306)	$ (47,172)

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.

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Accrued Liabilities, Current [Abstract]

Accrued Liabilities

12 Months Ended

Jun. 30, 2022

Accrued Liabilities

Note 7. Accrued Liabilities

Accrued liabilities consisted of the following, in thousands:


	June 30,
	2022		2021
Accrued pre-clinical and clinical trial expenses	$	5,264	$	4,004
Accrued compensation and benefits		4,346		3,513
Accrued legal and professional services expenses		1,036		813
Other		174		72

Total accrued liabilities	$	10,820	$	8,402

Strategic Agreements

3 Months Ended

9 Months Ended

12 Months Ended

Mar. 31, 2023

Dec. 31, 2022

Jun. 30, 2022

Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]

Strategic Agreements

Note 5. BeiGene Collaboration

), an

inhibito

r of Bruton’s tyrosine kinase, for the treatment of patients with

B-cell

malignancies. Under the terms of the clinical collaboration agreement, we amended our ongoing Phase 1b trial to include evaluation of zandelisib in combination with zanubrutinib in patients with

B-cell

malignancies. Study costs are being shared equally by the parties, and we agreed to supply zandelisib and BeiGene agreed to supply zanubrutinib. We record the costs reimbursed by BeiGene as a reduction of our research and development expenses. We retained full commercial rights for zandelisib and BeiGene retained full commercial rights for zanubrutinib. With the discontinuation of the zandelisib program outside of Japan, this clinical collaboration will be concluding with the discontinuation of the Phase 1b trial.

Note 3. BeiGene Collaboration

In October 2018, we entered into a clinical collaboration with BeiGene, Ltd. (“BeiGene”) to evaluate the safety and efficacy of zandelisib in combination with BeiGene’s zanubrutinib (marketed as Brukinsa), an investigational inhibitor of Bruton’s tyrosine kinase (“BTK”), for the treatment of patients with

B-cell

malignancies. Under the terms of the clinical collaboration agreement with BeiGene, we amended our ongoing

Phase 1b trial to include evaluation of zandelisib in combination with zanubrutinib in patients with

B-cell

Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]

Strategic Agreements

12. Strategic Agreements

We have worldwide development and commercialization rights to eganelisib, subject to certain obligations to our licensor, Takeda Pharmaceutical Company Limited, or Takeda, as described in more detail below. Additionally, we are obligated to pay Mundipharma International Corporation Limited, or Mundipharma, and Purdue Pharmaceutical Products L.P., or Purdue, a 4% royalty in the aggregate on worldwide net sales of products that were previously subject to our strategic alliance with Mundipharma and Purdue that was terminated in 2012. Such products include eganelisib; duvelisib, the PI3K delta and gamma inhibitor that we licensed to Verastem in 2016, the rights to which Verastem sold to Secura Bio in 2020; and

IPI-926,

or patidegib, part of the hedgehog inhibitor program we licensed to PellePharm in 2013, and which license is now held by

Sol-Gel.

We refer to such royalties as Trailing Mundipharma Royalties. After Mundipharma and Purdue have recovered approximately $260.0 million in royalty payments from all products that were previously subject to the strategic alliance, which represents the funding paid to us for research and development services performed by us under this strategic alliance, the Trailing Mundipharma Royalties will be reduced to a 1% royalty on net sales in the United States of such products. As of March 31, 2023, Mundipharma and Purdue have recovered $3.8 million.

PellePharm /

Sol-Gel

Technologies

In June 2013, we entered into a license agreement with PellePharm, under which we granted PellePharm exclusive global development and commercialization rights to our hedgehog inhibitor program, including patidegib. In January 2023, PellePharm announced that

Sol-Gel

acquired all rights and obligations under the license agreement. We refer to our license agreement with PellePharm as the

Sol-Gel

Agreement and products covered by the

Sol-Gel

Agreement as Hedgehog Products. We assessed this arrangement in accordance with Accounting Standard Codification 606 and concluded that at the date of contract inception there was only one performance obligation, consisting of the license, which was satisfied at contract inception.

Under the

Sol-Gel

Agreement,

Sol-Gel

is obligated to pay us up to $9.0 million in remaining regulatory and commercial-based milestone payments through the first commercial sale of a Hedgehog Product.

Sol-Gel

is also obligated to pay us up to $37.5 million in success-based milestone payments upon the achievement of certain annual net sales thresholds, as well as a share of certain revenue received by

Sol-Gel

in the event that

Sol-Gel

sublicenses its rights under the

Sol-Gel

Agreement and tiered royalties on annual net sales of Hedgehog Products subject to specified conditions. The remaining milestones have not been recognized as they represent variable consideration that is constrained. In making this assessment, we considered numerous factors, including the fact that achievement of the milestones is outside of our control and contingent upon the future success of clinical trials,

Sol-Gel’s

actions, and the receipt of regulatory approval. As the single performance obligation was previously satisfied, all regulatory and commercial-based milestones will be recognized as revenue in full in the period in which the constraint is removed. Any consideration related to sales-based milestone payments, including royalties, will be recognized when the related sales occur as these amounts have been determined to

relate predominantly to the license granted to

Sol-Gel

and therefore are recognized at the later of when the performance obligation is satisfied or the related sales occur.

Sol-Gel

is also obligated to pay us tiered royalties on annual net sales of Hedgehog Products, which are subject to reduction after a certain aggregate funding threshold has been achieved. On January 8, 2020, we entered into the BVF Funding Agreement, as further described in Note 10, pursuant to which we sold our interest in all royalty payments based on worldwide annual net sales of the BVF Licensed Product excluding Trailing Mundipharma Royalties related to patidegib.

Takeda

In July 2010, we entered into a development and license agreement with Intellikine, Inc., or Intellikine, under which we obtained rights to discover, develop and commercialize pharmaceutical products targeting the gamma and/or delta isoforms of PI3K, including eganelisib and duvelisib. In January 2012, Intellikine was acquired by Takeda. In December 2012, we amended and restated our development and license agreement with Takeda and further amended the agreement in July 2014, September 2016, July 2017, and March 2019. We refer to the amended and restated development and license agreement, as amended, as the Takeda Agreement.

Duvelisib

Pursuant to the Takeda Agreement, prior to March 4, 2019, we were obligated to share equally with Takeda all revenue arising from certain qualifying transactions for duvelisib, including the Secura Bio Agreement, subject to certain exceptions including revenue we receive as reimbursement for duvelisib research and development expenses. On March 4, 2019, we entered into the fourth amendment to the Takeda Agreement, or the Takeda Amendment. Pursuant to the Takeda Amendment, Takeda agreed (i) to the sale of certain royalty payments based on worldwide annual net sales of Licensed Products under the Secura Bio Agreement to HCR, (ii) to forego its rights to an equal share of the royalties due from Secura Bio during the term of the HCR Agreement, and (iii) not to seek any payment from HCR with respect to the royalties owed to Takeda. As consideration for the Takeda Amendment, we paid Takeda $6.7 million representing 25% of the $30.0 million in gross proceeds we received from the closing of the HCR Agreement, net of 25% of the expenses incurred by us in connection with the HCR Agreement. In addition, we agreed to pay Takeda 25% of the royalties that would have been payable to us by Secura Bio but for the consummation of the HCR Agreement, which we refer to as the Interim Obligation. During each of the three months ended March 31, 2023 and 2022, we recognized $0.1 million of Interim Obligation amounts owed to Takeda as royalty expense.

We have the right to extinguish the Interim Obligation by payment to Takeda of an amount equal to (i) the $6.7 million payment multiplied by a specified multiple corresponding to the time period in which such extinguishing payment is made, minus (ii) any payments made to Takeda pursuant to the Interim Obligation. The Interim Obligation shall expire upon the termination of the HCR Agreement and the reversion of related royalties to us, at which time our obligations to share the royalties payable under the Secura Bio Agreement equally with Takeda shall be reinstated.

Eganelisib

Pursuant to the Takeda Agreement, we are obligated to pay Takeda up to $3.0 million in remaining success-based development milestone payments and up to $165.0 million in remaining regulatory and commercial-based milestone payments for one product candidate other than duvelisib, which could be eganelisib.

11. Strategic Agreements

IPI-926,

or patidegib, part of the hedgehog inhibitor program we licensed to PellePharm in 2013, and which license is now held by

Sol-Gel.

We refer to such royalties as Trailing Mundipharma Royalties. After Mundipharma and Purdue have recovered approximately $260.0 million in royalty payments from all products that were previously subject to the strategic alliance, which represents the funding paid to us for research and development services performed by us under this strategic alliance, the Trailing Mundipharma Royalties will be reduced to a 1% royalty on net sales in the United States of such products. As of December 31, 2022, Mundipharma and Purdue have recovered $3.5 million.

PellePharm /

Sol-Gel

Technologies

Sol-Gel

acquired all rights and obligations under the license agreement. We refer to our license agreement with PellePharm as the

Sol-Gel

Agreement and products covered by the

Sol-Gel

Agreement as Hedgehog Products. We assessed this arrangement in accordance with ASC 606 and concluded that at the date of contract inception there was only one performance obligation, consisting of the license, which was satisfied at contract inception.

Under the

Sol-Gel

Agreement,

Sol-Gel

is obligated to pay us up to $9.0 million in remaining regulatory and commercial-based milestone payments through the first commercial sale of a Hedgehog Product.

Sol-Gel

is also obligated to pay us up to $37.5 million in success-based milestone payments upon the achievement of certain annual net sales thresholds, as well as a share of certain revenue received by

Sol-Gel

in the event that

Sol-Gel

sublicenses its rights under the

Sol-Gel

Sol-Gel’s

Sol-Gel

and therefore are recognized at the later of when the performance obligation is satisfied, or the related sales occur.

Sol-Gel

is also obligated to pay us tiered royalties on annual net sales of Hedgehog Products, which are subject to reduction after a certain aggregate funding threshold has been achieved. On January 8, 2020, we entered into the BVF Funding Agreement, as further described in Note 9, pursuant to which we sold our interest in all royalty payments based on worldwide annual net sales of the BVF Licensed Product, excluding Trailing Mundipharma Royalties related to patidegib.

Takeda

Duvelisib

Pursuant to the Takeda Agreement, prior to March 4, 2019, we were obligated to share equally with Takeda all revenue arising from certain qualifying transactions for duvelisib, including the Secura Bio Agreement, subject to certain exceptions including revenue we receive as reimbursement for duvelisib research and development expenses. On March 4, 2019, we entered into the fourth amendment to the Takeda Agreement, or the Takeda Amendment. Pursuant to the Takeda Amendment, Takeda agreed (i) to the sale of certain royalty payments based on worldwide annual net sales of Licensed Products under the Secura Bio Agreement to HCR, (ii) to forego its rights to an equal share of the royalties due from Secura Bio during the term of the HCR Agreement, and (iii) not to seek any payment from HCR with respect to the royalties owed to Takeda. As consideration for the Takeda Amendment, we paid Takeda $6.7 million representing 25% of the $30.0 million in gross proceeds we received from the closing of the HCR Agreement, net of 25% of the expenses incurred by us in connection with the HCR Agreement. In addition, we agreed to pay Takeda 25% of the royalties that would have been payable to us by Secura Bio but for the consummation of the HCR Agreement, which we refer to as the Interim Obligation. During the years ended December 31, 2022 and 2021, we recognized $0.3 million and $0.2 million, respectively, of Interim Obligation amounts owed to Takeda as royalty expense.

We have the right to extinguish the Interim Obligation by payment to Takeda of an amount equal to (i) the $6.7 million payment multiplied by the multiple set forth in the table below corresponding to the time period in which such extinguishing payment is made, minus (ii) any payments made to Takeda pursuant to the Interim Obligation:


Time Period	Multiple
From the Takeda Amendment Effective Date until June 30, 2022		145	%
From July 1, 2022 through June 30, 2023		155	%
From July 1, 2023 through June 30, 2024		165	%
From July 1, 2024 through June 30, 2025		175	%

The Interim Obligation shall expire upon the termination of the HCR Agreement and the reversion of related royalties to us, at which time our obligations to share the royalties payable under the Secura Bio Agreement equally with Takeda shall be reinstated.

Eganelisib

Pursuant to the Takeda Agreement, we are obligated to pay Takeda $3.0 million in a remaining success-based development milestone payment and up to $165.0 million in remaining regulatory and commercial-based milestone payments for one product candidate other than duvelisib, which could be eganelisib.

Stockholders' Equity	9 Months Ended	12 Months Ended
Stockholders' Equity	Mar. 31, 2023	Jun. 30, 2022
Federal Home Loan Banks [Abstract]
Stockholders' Equity	Note 9. Stockholders’ Equity Equity Transactions Shelf Registration Statement We have a shelf registration statement that permits us to sell, from time to time, up to $ 200.0 million of common stock, preferred stock and warrants. The shelf registration was filed and declared effective in May 2020, and carried forward approximately $ 107.5 million of unsold securities registered under the prior shelf registration statement. As of March 31, 2023, there was $ 123.4 million aggregate value of securities available under the shelf registration statement, including $ 60.0 million remaining available under the 2020 ATM Sales Agreement described below. The shelf registration expires on May 18, 2023. At-The-Market Equity Offering On November 10, 2020, we entered into an At-The-Market Equity Offering Sales Agreement (the “2020 ATM Sales Agreement”), pursuant to which we may sell an aggregate of up to $ 60.0 million of our common stock pursuant to the shelf registration statement. As of March 31, 202 3 , there was $ 60.0 million remaining available under the 2020 ATM Sales Agreement. Warrants As of March 31, 2023, we have outstanding warrants to purchase 802,949 shares of our common stock related to a private placement equity financing that we closed in May 2018. The warrants are fully vested, exercisable at a price of $ 50.80 per share and expire in May 2023. Pursuant to the terms of the warrants, we could be required to settle the warrants in cash in the event of an acquisition of us and, as a result, the warrants are required to be measured at fair value and reported as a liability in the Condensed Consolidated Balance Sheets. The warrants were revalued as of March 31, 202 3 and June 30, 2022 at zero and $ 1.6 million, respectively. The change in fair value of zero and $ 1.6 million was recorded on the Condensed Consolidated Statement of Operations for the three and nine months ended March 31, 2023. As of March 31, 2023, we also have outstanding warrants to purchase 102,513 shares of our common stock issued to Torreya Partners. The warrants are fully vested, exercisable at a price of $6.80 per share and expire in October 2027.	Note 8. Stockholders’ Equity Equity Transactions Underwritten Registered Offering During the year ended June 30, 2022, we completed an underwritten registered offering of 1,006,250 shares of common stock at a price per share of $52.00 for net cash proceeds of $48.7 million, after offering costs of $3.7 million. During the year ended June 30, 2020, we completed an underwritten registered offering of 1,617,188 shares of common stock at a price per share of $32.00 for net cash proceeds of $48.5 million, after offering costs of $3.3 million. Shelf Registration Statement We have a shelf registration statement that permits us to sell, from time to time, up to $200.0 million of common stock, preferred stock and warrants. The shelf registration was filed and declared effective in May 2020, replacing our prior shelf registration statement that was filed and declared effective in May 2017, and carrying forward approximately $107.5 million of unsold securities registered under the prior shelf registration statement. As of June 30, 2022, there was $123.4 million aggregate value of securities available under the shelf registration statement. At-The-Market Equity Offering On November 10, 2020, we entered into an At-The-Market Equity Offering Sales Agreement (the “2020 ATM Sales Agreement”), pursuant to which we may sell an aggregate of up to $60.0 million of our common stock pursuant to the shelf registration statement. We had previously entered into an At-The-Market Equity Offering Sales Agreement in November 2017 (the “2017 ATM Sales Agreement”), pursuant to which we could sell an aggregate of up to $30.0 million of our common stock pursuant to the shelf registration statement. The 2017 ATM Sales Agreement expired on November 8, 2020. During the year ended June 30, 2020, we sold 273,584 shares under the 2017 ATM Sales Agreement for net proceeds of $20.7 million, after costs of $0.4 million. During the year ended June 30, 2021, we sold 47,904 shares under the 2017 ATM Sales Agreement for net proceeds of $3.1 million, after costs of $0.1 million. As of June 30, 2022, there was $60.0 million available under the 2020 ATM Sales Agreement. Warrants As of June 30, 2022, we have outstanding warrants to purchase 802,949 shares of our common stock. The warrants are fully vested, exercisable at a price of $50.80 per share and expire in May 2023. Pursuant to the terms of the warrants, we could be required to settle the warrants in cash in the event of an acquisition of the Company and, as a result, the warrants are required to be measured at fair value and reported as a liability in the Balance Sheets. The warrants were revalued as of June 30, 2022, 2021 and 2020 at $1.6 million, $22.4 million and $40.5 million, respectively. The changes in fair value were recorded on our Statements of Operations for the years ended June 30, 2022, 2021 and 2020. During the year ended June 30, 2021, a warrant holder completed a cashless exercise of 131 warrants for 48 shares of common stock. No warrants were exercised during the years ended June 30, 2022 and 2020. Description of Capital Stock Our total authorized share capital is 226,100,000 shares consisting of 226,000,000 shares of common stock, $0.00000002 par value per share, and 100,000 shares of preferred stock, $0.01 par value per share. Common Stock The holders of common stock are entitled to one vote per share. In the event of a liquidation, dissolution or winding up of our affairs, holders of the common stock will be entitled to share ratably in all our assets that are remaining after payment of our liabilities and the liquidation preference of any outstanding shares of preferred stock. All outstanding shares of common stock are fully paid and non-assessable. The rights, preferences and privileges of holders of common stock are subject to any series of preferred stock that we have issued or that we may issue in the future. The holders of common stock have no pre-emptive rights and are not subject to future calls or assessments by us. Preferred Stock Our board of directors has the authority to issue up to 100,000 shares of preferred stock with a par value of $.01 per share in one or more series and to fix the rights, preferences, privileges and restrictions in respect of that preferred stock, including dividend rights, dividend rates, conversion rights, voting rights, terms of redemption (including sinking fund provisions), redemption prices and liquidation preferences, and the number of shares constituting such series and the designation of any such series, without future vote or action by the stockholders. Therefore, the board of directors, without the approval of the stockholders, could authorize the issue of preferred stock with voting, conversion and other rights that could affect the voting power, dividend and other rights of the holders of shares or that could have the effect of delaying, deferring or preventing a change of control. There were no shares of preferred stock outstanding as of June 30, 2022 or 2021.

The entire disclosure for shareholders' equity comprised of portions attributable to the parent entity and noncontrolling interest, including other comprehensive income. Includes, but is not limited to, balances of common stock, preferred stock, additional paid-in capital, other capital and retained earnings, accumulated balance for each classification of other comprehensive income and amount of comprehensive income.

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Schedule of Supplemental Cash Flow Information Related to Operating Leases (Detail) - USD ($)	9 Months Ended		12 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2020
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases			$ 1,519,000	$ 983,000	$ 0
Right-of-use assets obtained in exchange for operating lease obligations:	$ 4,347,000	$ 0	$ 2,189,000	$ 8,689,000	$ 0

Liabilities Related to Sale of Future Royalties (Tables)

3 Months Ended

12 Months Ended

Mar. 31, 2023

Dec. 31, 2022

Schedule of Liability Related to Future Sale of Royalties

The following table shows the activity within the liability account for the three months ended March 31, 2023:


	March 31, 2023
	(in thousands)
Liability related to sale of future royalties, net - beginning balance	$	26,818
Non-cash royalty revenue		(387	)
Non-cash interest expense recognized		38

Liability related to sale of future royalties, net - ending balance		26,469
Less: current portion		(1,307	)

Liability related to sale of future royalties, net, less current portion	$	25,162

The following table shows the activity within the liability account for the three months ended March 31, 2023:


	March 31, 2023
	(in thousands)
Liability related to sale of future royalties, net - beginning balance	$	21,613
Non-cash interest expense recognized		7

Liability related to sale of future royalties, net - ending balance	$	21,620

The following table shows the activity within the liability account for the years ended December 31, 2022 and 2021:


	December 31,
	2022			2021
	(in thousands)
Liability related to sale of future royalties - beginning balance	$	28,038		$	28,869
Non-cash royalty revenue		(1,373	)		(984	)
Non-cash interest expense recognized		153			153

Liability related to sale of future royalties, net - ending balance	$	26,818		$	28,038
Less: current portion		(1,218	)		(897	)

Liability related to sale of future royalties, net, less current portion	$	25,600		$	27,141

The following table shows the activity within the liability account for the years ended December 31, 2022 and 2021:


	December 31,
	2022		2021
	(in thousands)
Liability related to sale of future royalties - beginning balance	$	21,586	$	21,559
Non-cash interest expense recognized		27		27

Liability related to sale of future royalties, net - ending balance	$	21,613	$	21,586

Share-Based Compensation Expense for Stock Awards (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended		12 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Mar. 31, 2023	Mar. 31, 2022	Dec. 31, 2022	Jun. 30, 2022	Dec. 31, 2021	Jun. 30, 2021	Jun. 30, 2020
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Share-based compensation expense	$ 918	$ 2,837	$ 3,290	$ 7,700		$ 8,350		$ 10,245	$ 6,801
Research and Development
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Share-based compensation expense	374	1,118	1,224	2,398		2,610		4,144	2,777
General and administrative
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Share-based compensation expense	544	1,719	$ 2,066	$ 5,302		$ 5,740		$ 6,101	$ 4,024
Infinity Pharmaceuticals Inc [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Share-based compensation expense	1,774	867			$ 3,621		$ 2,695
Stock-based compensation	1,774	867			3,621		2,695
Infinity Pharmaceuticals Inc [Member] \| Research and Development
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Share-based compensation expense	403	275
Stock-based compensation					1,291		830
Infinity Pharmaceuticals Inc [Member] \| General and administrative
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Share-based compensation expense	$ 1,371	$ 592
Stock-based compensation					$ 2,330		$ 1,865

Schedule of Property and Equipment (Detail) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022	Jun. 30, 2022	Dec. 31, 2021	Jun. 30, 2021
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Gross			$ 2,308		$ 1,837
Less: accumulated depreciation			(648)		(330)
Property and equipment, net	$ 1,366		1,660		1,507
Infinity Pharmaceuticals Inc [Member]
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Gross		$ 4,110		$ 4,093
Less: accumulated depreciation		(3,310)		(2,852)
Property and equipment, net	$ 695	800		1,241
Furniture And Equipment
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Gross			1,254		896
Leasehold Improvements
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Gross			$ 1,054		$ 941
Leasehold Improvements \| Infinity Pharmaceuticals Inc [Member]
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Gross		1,743		1,743
Computer Equipment [Member] \| Infinity Pharmaceuticals Inc [Member]
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Gross		1,921		1,904
Furniture and Fixtures [Member] \| Infinity Pharmaceuticals Inc [Member]
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Gross		$ 446		$ 446

Basis of Presentation (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended		12 Months Ended
Basis of Presentation (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Mar. 31, 2022	Mar. 31, 2023	Mar. 31, 2022	Dec. 31, 2022	Jun. 30, 2022	Dec. 31, 2021	Jun. 30, 2021	Jun. 30, 2020
Accumulated deficit	$ (395,968)		$ (395,968)		$ (396,000)	$ (374,159)		$ (319,705)
Net cash provided by (used in) operating activities			(41,182)	$ (33,242)		$ (48,746)		$ (31,964)	$ 34,258
Infinity Pharmaceuticals Inc [Member]
Cash, cash equivalents, and available-for-sale securities	25,700		25,700		38,300
Accumulated deficit	(866,997)		$ (866,997)		(855,952)		$ (811,583)
Net cash provided by (used in) operating activities	$ (12,576)	$ (13,535)			$ (42,431)		$ (40,618)

Schedule of Changes in Estimated Fair Value of Warrant Liability (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended		12 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Mar. 31, 2023	Mar. 31, 2022	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2020
Fair value measurements Significant unobservable inputs [Line Items]
Beginning balance			$ 1,603	$ 22,355	$ 22,355	$ 40,483
Change in estimated fair value of liability classified warrants	$ 0	$ (12,773)	(1,603)	(20,819)	(20,752)	(18,122)	$ 22,870
Ending balance	0		0		1,603	22,355	$ 40,483
Fair Value, Measurements, Recurring [Member] \| Level 3
Fair value measurements Significant unobservable inputs [Line Items]
Beginning balance			1,603	22,355	22,355
Reclassification of warrant liability to equity upon exercise of warrants					0	(6)
Change in estimated fair value of liability classified warrants			(1,603)	(20,819)	(20,752)	(18,122)
Ending balance	$ 0	$ 1,536	$ 0	$ 1,536	$ 1,603	$ 22,355

Segment Information - Additional Information (Detail) - Segment	12 Months Ended
	Jun. 30, 2022	Jun. 30, 2021
Segment Reporting Information [Line Items]
Number of Operating Segments	1	1

CONDENSED CONSOLIDATED BALANCE SHEETS (parenthetical) - $ / shares	Mar. 31, 2023	Dec. 31, 2022	Jun. 30, 2022	Dec. 31, 2021	Jun. 30, 2021
Preferred stock, par value		$ 0.01	$ 0.01		$ 0.01
Preferred stock, shares authorized		100,000	100,000		100,000
Preferred stock, shares issued			100,000
Preferred stock, shares outstanding		0	0		0
Common stock, par value	$ 0.00000002		$ 0.00000002		$ 0.00000002
Common stock, shares authorized	226,000,000		226,000,000		226,000,000
Common stock, shares issued	6,663,000		6,658,000		6,658,000
Common stock, shares outstanding	6,663,000		6,658,000		5,631,000
Infinity Pharmaceuticals Inc [Member]
Preferred stock, par value	$ 0.001	$ 0.001		$ 0.001
Preferred stock, shares authorized	1,000,000	1,000,000		1,000,000
Preferred stock, shares issued	0	0		0
Preferred stock, shares outstanding	0	0		0
Common stock, par value	$ 0.001	$ 0.001		$ 0.001
Common stock, shares authorized	200,000,000	200,000,000		200,000,000
Common stock, shares issued	89,422,138	89,411,471		89,155,311
Common stock, shares outstanding	89,422,138	89,411,471		89,155,311

Basis of Presentation

3 Months Ended

Mar. 31, 2023

Share-Based Compensation Expense for Stock Awards

Basis of Presentation

3. Basis of Presentation

These condensed consolidated financial statements include the accounts of Infinity and its wholly-owned subsidiaries. We have eliminated all significant intercompany accounts and transactions in consolidation.

The accompanying condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles for interim financial information and with the instructions to

Form 10-Q

and Article 10 of Regulation

S-X.

Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. In the opinion of management, all adjustments, consisting of normal recurring accruals and revisions of estimates, considered necessary for a fair presentation of the accompanying condensed consolidated financial statements have been included. Interim results for the three months ended March 31, 2023 are not necessarily indicative of the results that may be expected for the fiscal year ending December 31, 2023.

The information presented in the condensed consolidated financial statements and related footnotes at March 31, 2023, and for the three months ended March 31, 2023 and 2022, is unaudited, and the condensed consolidated balance sheet amounts and related footnotes at December 31, 2022 have been derived from our audited financial statements. For further information, please refer to the consolidated financial statements and accompanying footnotes included in our Annual Report on

Form 10-K

for the fiscal year ended December 31, 2022 filed with the SEC on March 28, 2023, which we refer to as our 2022 Annual Report on Form

10-K.

Liquidity and Going Concern

As of March 31, 2023, we had cash and cash equivalents of $25.7 million. We have primarily incurred operating losses since inception and have relied on our ability to fund our operations through collaboration and license arrangements, or other strategic arrangements, and through the sale of our common stock.

We expect to continue to spend significant resources to fund the development and potential commercialization of eganelisib, also known as

IPI-549,

an orally administered immuno-oncology product candidate that selectively inhibits the enzyme

phosphoinositide-3-kinase-gamma,

or PI3K-gamma, and to incur significant operating losses for the foreseeable future.

As of March 31, 2023, we had an accumulated deficit of $867.0 million and during the three months ended March 31, 2023 used $12.6 million in cash and cash equivalents to fund operating activities. We expect to continue to incur substantial operating losses and negative cash flows from operations for the foreseeable future. These conditions raise substantial doubt about our ability to continue as a going concern for at least twelve months from the date these condensed consolidated financial statements are issued on May 9, 2023.

•

Pursue another strategic transaction

•

Wind down the company

Our condensed consolidated financial statements have been prepared on a going concern basis, which contemplates the realization of assets and settlement of liabilities and commitments in the ordinary course of business. The condensed consolidated financial statements do not include any adjustments that might result from the outcome of the conditions described above.

BeiGene Collaboration	9 Months Ended	12 Months Ended
BeiGene Collaboration	Mar. 31, 2023	Jun. 30, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]
BeiGene Collaboration	Note 5. BeiGene Collaboration In October 2018, we entered into a clinical collaboration with BeiGene, Ltd. (“BeiGene”) to evaluate the safety and efficacy of zandelisib in combination with BeiGene’s zanubrutinib (marketed as Brukinsa ® ), an inhibito r of Bruton’s tyrosine kinase, for the treatment of patients with B-cell malignancies. Under the terms of the clinical collaboration agreement, we amended our ongoing Phase 1b trial to include evaluation of zandelisib in combination with zanubrutinib in patients with B-cell malignancies. Study costs are being shared equally by the parties, and we agreed to supply zandelisib and BeiGene agreed to supply zanubrutinib. We record the costs reimbursed by BeiGene as a reduction of our research and development expenses. We retained full commercial rights for zandelisib and BeiGene retained full commercial rights for zanubrutinib. With the discontinuation of the zandelisib program outside of Japan, this clinical collaboration will be concluding with the discontinuation of the Phase 1b trial.	Note 3. BeiGene Collaboration In October 2018, we entered into a clinical collaboration with BeiGene, Ltd. (“BeiGene”) to evaluate the safety and efficacy of zandelisib in combination with BeiGene’s zanubrutinib (marketed as Brukinsa), an investigational inhibitor of Bruton’s tyrosine kinase (“BTK”), for the treatment of patients with B-cell malignancies. Under the terms of the clinical collaboration agreement with BeiGene, we amended our ongoing Phase 1b trial to include evaluation of zandelisib in combination with zanubrutinib in patients with B-cell malignancies. Study costs are being shared equally by the parties, and we agreed to supply zandelisib and BeiGene agreed to supply zanubrutinib. We record the costs reimbursed by BeiGene as a reduction of our research and development expenses. We retained full commercial rights for zandelisib, and BeiGene retained full commercial rights for zanubrutinib.

Short-Term Investments	9 Months Ended
Short-Term Investments	Mar. 31, 2023
Investments, Debt and Equity Securities [Abstract]
Short-Term Investments	Note 3. Short-Term Investments As of March 31, 2023, and June 30, 2022, our short-term investments consisted of $103.2 million and $137.5 million, respectively, in U.S. government securities. The short-term investments held as of March 31, 202 3 and June 30, 2022 had maturity dates of less than one year, are considered to be “held to maturity” and are carried at amortized cost. As of March 31, 202 3 , and June 30, 2022, the gross holding gains and losses were immaterial.

Commitments and Contingencies - Schedule of Future Minimum Lease Payments (Detail) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022	Jun. 30, 2022	Dec. 31, 2021
Leases [Abstract]
2023	$ 2,335		$ 1,565
2024	1,913		1,612
Total future minimum lease payments	16,943		12,906
Less: imputed interest	(3,891)		(3,264)
Total lease liability	13,052		$ 9,642
Infinity Pharmaceuticals Inc [Member]
Leases [Abstract]
2023		$ 658
2024		334
Total future minimum lease payments	$ 800	992
Less: imputed interest		(75)
Total lease liability		$ 917		$ 1,436

Commitments and Contingencies - Summary of Leases (Detail) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022	Jun. 30, 2022	Dec. 31, 2021	Jun. 30, 2021
Assets
Operating lease right-of-use assets	$ 12,338		$ 9,054		$ 7,774
Liabilities
Accrued expenses and other current liabilities	1,385		871		928
Operating lease liability	11,667		8,771		$ 7,370
Total lease liabilities	13,052		$ 9,642
Infinity Pharmaceuticals Inc [Member]
Assets
Operating lease right-of-use assets	597	$ 697		$ 1,064
Liabilities
Accrued expenses and other current liabilities	613	593		519
Operating lease liability	$ 164	324		917
Total lease liabilities		$ 917		$ 1,436

Share-based Compensation (Tables)

3 Months Ended

9 Months Ended

12 Months Ended

Mar. 31, 2023

Dec. 31, 2022

Jun. 30, 2022

Total share-based compensation expense for all stock awards consisted of the following for the periods presented (in thousands):


	Three Months Ended March 31,				Nine Months Ended March 31,
	2023		2022		2023		2022

Research and development	$	374	$	1,118	$	1,224	$	2,398
General and administrative		544		1,719		2,066		5,302

Total share-based compensation expense	$	918	$	2,837	$	3,290	$	7,700

Total share-based compensation expense for all stock awards consists of the following, in thousands:


	Years Ended June 30,
	2022		2021		2020
Research and development	$	2,610	$	4,144	$	2,777
General and administrative		5,740		6,101		4,024

Total share-based compensation	$	8,350	$	10,245	$	6,801

Summary of Stock Option Activity and Related Data

A summary of our stock option activity and related data follows:


	Number of Options			Weighted- Average Exercise Price		Weighted Average Remaining Contractual Term (in years)		Aggregate Intrinsic Value
Outstanding at June 30, 2022		996,700		$	57.00
Granted		462,201			10.66
Expired		(7,834	)		52.62
Forfeited/Cancelled		(198,136	)		40.37

Outstanding at March 31, 2023		1,252,931			42.56		7.5	$	—

Vested and exercisable at March 31, 2023		664,330			56.70		6.2	$	—

A summary of our stock option activity and related data follows:


	Number of Options			Weighted-Average Exercise Price		Weighted-Average Remaining Contractual Term (in years)		Aggregate Intrinsic Value
Outstanding at June 30, 2021		833,427		$	60.20
Granted		356,237		$	51.40
Exercised		(17,428	)	$	32.80
Forfeited		(175,536	)	$	63.00

Outstanding at June 30, 2022		996,700		$	57.00		7.4	$	50,600

Vested and exercisable at June 30, 2022		542,232		$	59.00		6.2	$	—

Fair Value of Stock Options Weighted-Average Assumptions Used

the following weighted average assumptions were used for the periods presented:


	Nine Months Ended March 31,
	2023			2022

Risk-free interest rate		2.9	%		1.2	%
Expected life (years)		6.0			6.0
Expected volatility		84.1	%		68.8	%
Dividend yield		0.0	%		0.0	%
Weighted average grant date fair value	$	7.71		$	33.00

We use a Black-Scholes valuation model to estimate the grant date fair value of stock options. To calculate these fair values, the following weighted-average assumptions were used:


	Years Ended June 30,
	2022			2021			2020
Risk-free interest rate		1.3	%		0.5	%		1.7	%
Expected life (years)		6.0			6.0			6.0
Expected volatility		69.6	%		80.1	%		74.1	%
Dividend yield		0.0	%		0.0	%		0.0	%
Weighted-average grant date fair value	$	31.40		$	46.00		$	32.80

Summary of RSU activity

A summary of our RSU activity and related data for the nine months ended March 31, 2023 was as follows:


	Number of RSUs			Weighted Average Grant Date Fair Value
Non-vested at June 30, 2022		9,220		$	69.80
Vested		(9,220	)	$	69.80

Non-vested at March 31, 2023		—		$	—

A summary of our RSU activity and related data follows:


	Number of RSUs			Weighted-Average Grant Date Fair Value
Non-vested at June 30, 2021		20,033		$	69.80
Vested		(6,500	)	$	69.80
Forfeited		(4,313	)	$	69.80

Non-vested at June 30, 2022		9,220		$	69.80

Share-Based Compensation Expense for Stock Awards

Total stock-based compensation expense related to all equity awards for the three months ended March 31, 2023 and 2022 was composed of the following:


	Three Months Ended March 31,
	2023		2022
	(in thousands)
Research and development	$	403	$	275
General and administrative		1,371		592

Total stock-based compensation expense	$	1,774	$	867

Total stock-based compensation expense related to all equity awards was comprised of the following:


	Year Ended December 31,
	2022		2021
	(in thousands)
Research and development	$	1,291	$	830
General and administrative		2,330		1,865

Total stock-based compensation expense	$	3,621	$	2,695

Fair Value of Stock Options Weighted-Average Assumptions Used

For the three months ended March 31, 2023 and 2022, the fair values were estimated using the Black-Scholes valuation model using the following weighted-average assumptions:


	Three Months Ended March 31,
	2023		2022
Risk-free interest rate		—		1.6%
Expected annual dividend yield		—		—
Expected stock price volatility		—		106.2%
Expected term of options		—		6.0 years

We estimate the fair value of stock options at the date of grant using the Black-Scholes valuation model with the following weighted-average assumptions:


	December 31,
	2022			2021
Risk-free interest rate		2.1	%		0.9	%
Expected annual dividend yield		—			—
Expected stock price volatility		105.0	%		106.3	%
Expected term of options		5.9 years			5.9 years

Summary of Stock Option Activity

A summary of our stock option activity for the year ended December 31, 2022 is as follows:


	Stock Options			Weighted- Average Exercise Price per Share		Weighted- Average Remaining Contractual Life (years)		Aggregate Intrinsic Value (in millions)
Outstanding at January 1, 2022		12,689,439		$	3.53
Granted		2,886,324			1.36
Exercised		(17,708	)		0.83
Forfeited		(238,129	)		1.46
Expired		(656,229	)		8.30

Outstanding at December 31, 2022		14,663,697		$	2.93		6.3	$	—

Exercisable at December 31, 2022		10,903,188		$	3.33		5.6	$	—

Summary of RSU Activity

A summary of our RSU activity for the year ended December 31, 2022 is as follows:


	Restricted Stock Units			Weighted-Average Grant Date Fair Value per Unit
Outstanding, non-vested at January 1, 2022		50,000		$	2.93
Granted		2,950,483			1.08
Vested		(50,000	)		2.93
Forfeited		(10,667	)		1.08

Outstanding, non-vested at December 31, 2022		2,939,816		$	1.08

Calculation of Weighted Average Shares Used to Calculate Basic and Diluted Income (Loss) Earnings Per Share (Detail) - shares shares in Thousands	3 Months Ended		9 Months Ended		12 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Mar. 31, 2023	Mar. 31, 2022	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2020
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Weighted average shares used in calculating basic net loss per share	6,663	6,653	6,663	6,080	6,224	5,626	4,554
Effect of potentially dilutive common shares from equity awards and liability-classified warrants	0	0	0	44	33	98	0
Weighted average shares used in calculating diluted net loss per share	6,663	6,653	6,663	6,124	6,257	5,724	4,554

Liabilities Related to Sale of Future Royalties

3 Months Ended

12 Months Ended

Mar. 31, 2023

Dec. 31, 2022

10. Liabilities Related to Sale of Future Royalties

HCR Agreement

In 2016, we and Verastem Inc., or Verastem, entered into an amended and restated license agreement, or the Verastem Agreement, under which we granted to Verastem an exclusive worldwide license in oncology indications for the research, development, commercialization, and manufacture of duvelisib, or Copiktra

, an oral, dual inhibitor of PI3K delta and gamma, and products containing duvelisib, which we refer to as Licensed Products. In September 2020, Verastem completed a disposition of its rights, title, and interest in and to duvelisib to Secura Bio, Inc., or Secura Bio, whereby Secura Bio assumed all liabilities and obligations under the Verastem Agreement. We now refer to the Verastem Agreement as the Secura Bio Agreement.

Secura Bio is obligated to pay us royalties on worldwide net sales of Licensed Products ranging from the

mid-single

digits to the high-single digits, a portion of which we are obligated to share with Takeda Pharmaceuticals Company Limited, or Takeda, as described in Note 12.

In March 2019, we entered into a royalty purchase agreement, or the HCR Agreement, with HealthCare Royalty Partners III, L.P., or HCR, providing for the acquisition by HCR of our interest in certain royalty payments based on worldwide annual net sales of Licensed Products under the Secura Bio Agreement for gross proceeds of $30.0 million, which is

non-refundable.

After sharing with Takeda in accordance with the Takeda Agreement, as defined in Note 12, we retained $22.5 million in gross proceeds, or approximately $20.9 million in net proceeds. Under the HCR Agreement, HCR obtained the right to receive the royalty payments up to agreed upon thresholds of royalties, the amount of which depends on when the aggregate royalties received by HCR reach specified thresholds. If the specified threshold has been met through royalty payments from Secura Bio or if we elect to make a payment to meet the threshold amount, the HCR Agreement will automatically terminate and all rights to the royalty stream under the HCR Agreement will revert back to us. If the specified threshold has not been achieved by June 30, 2025, the HCR Agreement will continue through the term of the Secura Bio Agreement.

We recognized the receipt of the $30.0 million payment from HCR as a liability, net of debt discount and issuance costs of approximately $2.4 million. As the basis for our determination, we considered, in accordance with the relevant accounting guidance, the potential for the royalty stream to revert back to us if specified royalty thresholds have been met and our right to terminate the HCR Agreement by making a payment to achieve the threshold. We are not obligated to repay any of the proceeds received under the HCR Agreement. In order to

determine the amortization of the liability, we are required to estimate the total amount of future net royalty payments to be made to HCR over the term of the HCR Agreement. The total threshold of net royalties to be paid, less the net proceeds received, will be recorded as interest expense over the life of the liability. We impute interest on the unamortized portion of the liability using the effective interest method. Interest and debt discount amortization expense is reflected as

non-cash

interest expense in the condensed consolidated statements of operations and comprehensive loss. Over the course of the HCR Agreement, the actual interest rate will be affected by the amount and timing of royalty revenue recognized and changes in forecasted royalty revenue. On a quarterly basis, we reassess the effective interest rate and adjust the rate prospectively as needed.

The following table shows the activity within the liability account for the three months ended March 31, 2023:


	March 31, 2023
	(in thousands)
Liability related to sale of future royalties, net - beginning balance	$	26,818
Non-cash royalty revenue		(387	)
Non-cash interest expense recognized		38

Liability related to sale of future royalties, net - ending balance		26,469
Less: current portion		(1,307	)

Liability related to sale of future royalties, net, less current portion	$	25,162

As royalties are due to HCR by Secura Bio, the balance of the recognized liability will be effectively repaid over the life of the HCR Agreement. There are a number of factors that could materially affect the amount and timing of royalty payments from Secura Bio, none of which are within our control.

BVF Agreement

On January 8, 2020, or the BVF Closing Date, we entered into a funding agreement, or the BVF Funding Agreement, with BVF Partners, L.P., or BVF, and Royalty Security, LLC, a wholly-owned subsidiary of BVF, or the Buyer. BVF was subsequently replaced as a party to the BVF Funding Agreement with Royalty Security Holdings, LLC. The BVF Funding Agreement provides for the acquisition by the Buyer of our interest in all royalty payments based on worldwide annual net sales of a clinical-stage product candidate

IPI-926,

or patidegib, part of the hedgehog inhibitor program we licensed to PellePharm Inc., or PellePharm, in 2013, or the BVF Licensed Product, excluding relevant Trailing Mundipharma Royalties, as defined in Note 12, which is related to patidegib. We refer to all BVF Licensed Product royalties owed to us less Trailing Mundipharma Royalties as the Royalty or Royalties. In January 2023, PellePharm announced that

Sol-Gel

Technologies, Ltd., or

Sol-Gel,

acquired all rights and obligations under the license agreement. We now refer to the license agreement with PellePharm as the

Sol-Gel

Agreement. Such Royalties are owed to us pursuant to the

Sol-Gel

Agreement, as further described in Note 12.

Pursuant to the BVF Funding Agreement, we received a

non-refundable

payment of $20.0 million, or the Upfront Purchase Price, less certain transaction expenses. We transferred to the Buyer (i) the Royalty, (ii) the

Sol-Gel

Agreement (subject to our rights to milestone payments and rights to equity in

Sol-Gel

under the

Sol-Gel

Agreement), and (iii) certain patent rights established in the BVF Funding Agreement, with (i), (ii), and (iii) together referred to as Transferred Assets. We preserved our rights under the

Sol-Gel

Agreement to receive potential regulatory, commercial, and success-based milestone payments. We had the option to terminate the BVF Funding Agreement by purchasing 100% of the outstanding equity interests of the Buyer under specified terms for a specified amount under the BVF Funding Agreement through January 8, 2023. In addition, the BVF Funding Agreement may be terminated by mutual written agreement between us and the Buyer.

We recognized the proceeds received under the BVF Funding Agreement as a liability that will be amortized using the effective interest method over the life of the arrangement. We recorded the receipt of the $20.0 million Upfront Purchase Price as a liability, net of debt issuance costs of approximately $0.4 million and warrant liability of $0.3 million. We are not obligated to repay any of the proceeds received under the BVF Funding Agreement. In order to determine the amortization of the liability, we are required to estimate the total amount of potential future net royalty payments to be made by

Sol-Gel

to the Buyer over the term of the BVF Funding Agreement. The total estimated net royalties to be paid, less the net proceeds received, will be recorded as interest expense over the life of the liability. Interest and debt discount amortization expense is reflected as

non-cash

interest expense for the three months ended March 31, 2023 and 2022 in our condensed consolidated statements of operations and comprehensive loss. Over the course of the BVF Funding Agreement, the actual interest rate will be affected by the amount and timing of royalty revenue recognized, if any, and changes in forecasted royalty revenue. There are a number of factors that could materially affect the amount and timing of royalty payments from

Sol-Gel,

none of which are within our control. On a quarterly basis, we will reassess the effective interest rate and adjust the rate prospectively as needed.

The following table shows the activity within the liability account for the three months ended March 31, 2023:


	March 31, 2023
	(in thousands)
Liability related to sale of future royalties, net - beginning balance	$	21,613
Non-cash interest expense recognized		7

Liability related to sale of future royalties, net - ending balance	$	21,620

For so long as we have not exercised an option to repurchase the Buyer’s equity interest under the BVF Funding Agreement, (a) if, during

the 36-month period

following the BVF Closing Date, we issue a specified number of shares of our common stock, which we refer to as the Warrant Threshold, and (b) any shares in excess of the Warrant Threshold are issued for consideration to us of less than $3.75 per share (as adjusted for any stock splits, reverse stock splits or other similar recapitalization events), or the Threshold Price, then we were obligated to issue to BVF warrants to purchase a number of shares of our common stock. Such warrants would equal 50% of the number of qualifying shares at an exercise price equal to 1.5 times the price per share of such qualifying shares issued. The requirement to issue warrants to BVF did not apply to certain issuances of our common stock. Our obligation to issue warrants to BVF under these terms expired on January 8, 2023 without any warrants being issued to BVF.

We determined that the commitment to issue warrants represented a freestanding financial instrument and accounted for it as a liability as of the BVF Closing Date. The fair value of the warrant liability was estimated using the Monte Carlo simulation model. We have

re-measured

the warrant liability at each reporting date. Changes in fair value of the warrant liability, including the gain recognized on the expiration of the warrant liability are included in investment and other income in our condensed consolidated statements of operations and comprehensive loss. See Note 7 for further discussions of the fair value of the warrants.

9. Liabilities Related to Sale of Future Royalties

HCR Agreement

Secura Bio is obligated to pay us royalties on worldwide net sales of Licensed Products ranging from the

mid-single

digits to the high-single digits, a portion of which we are obligated to share with Takeda Pharmaceuticals Company Limited, or Takeda, as described in Note 11.

non-refundable.

After sharing with Takeda in accordance with the Takeda Amendment, as defined in Note 11, we retained $22.5 million in gross proceeds, or approximately $20.9 million in net proceeds. Under the HCR Agreement, HCR obtained the right to receive the royalty payments up to agreed upon thresholds of royalties, the amount of which depends on when the aggregate royalties received by HCR reach specified thresholds. If the specified threshold has been met through royalty payments from Secura Bio or if we elect to make a payment to meet the threshold amount, the HCR Agreement will automatically terminate and all rights to the royalty stream under the HCR Agreement will revert back to us. If the specified threshold has not been achieved by June 30, 2025, the HCR Agreement will continue through the term of the Secura Bio Agreement.

non-cash

interest expense in the Consolidated Statements of Operations and Comprehensive Loss. Over the course of the HCR Agreement, the actual interest rate will be affected by the amount and timing of royalty revenue recognized and changes in forecasted royalty revenue. On a quarterly basis, we reassess the effective interest rate and adjust the rate prospectively as needed.

The following table shows the activity within the liability account for the years ended December 31, 2022 and 2021:


	December 31,
	2022			2021
	(in thousands)
Liability related to sale of future royalties - beginning balance	$	28,038		$	28,869
Non-cash royalty revenue		(1,373	)		(984	)
Non-cash interest expense recognized		153			153

Liability related to sale of future royalties, net - ending balance	$	26,818		$	28,038
Less: current portion		(1,218	)		(897	)

Liability related to sale of future royalties, net, less current portion	$	25,600		$	27,141

BVF Agreement

IPI-926,

or patidegib, part of the hedgehog inhibitor program we licensed to PellePharm Inc., or PellePharm, in 2013, or the BVF Licensed Product, excluding relevant Trailing Mundipharma Royalties, as defined in Note 11, which is related to patidegib. We refer to all BVF Licensed Product royalties owed to us less Trailing Mundipharma Royalties as the Royalty or Royalties. In January 2023, PellePharm announced that

Sol-Gel

Technologies, Ltd., or

Sol-Gel,

acquired all rights and obligations under the license agreement. We now refer to the license agreement with PellePharm as the

Sol-Gel

Agreement. Such Royalties are owed to us pursuant to the

Sol-Gel

Agreement, as further described in Note 11.

Pursuant to the BVF Funding Agreement, we received a

non-refundable

payment of $20.0 million, or the Upfront Purchase Price, less certain transaction expenses. We transferred to the Buyer (i) the Royalty, (ii) the

Sol-Gel

Agreement (subject to our rights to milestone payments and rights to equity in

Sol-Gel

under the

Sol-Gel

Agreement), and (iii) certain patent rights established in the BVF Funding Agreement, with (i), (ii), and (iii) together referred to as Transferred Assets. We preserved our rights under the

Sol-Gel

Agreement to receive potential regulatory, commercial, and success-based milestone payments. We have the option to terminate the BVF Funding Agreement by purchasing 100% of the outstanding equity interests of the Buyer under specified

terms for a specified amount under the BVF Funding Agreement through January 8, 2023. In addition, the BVF Funding Agreement may be terminated by mutual written agreement between us and the Buyer.

Sol-Gel

non-cash

interest expense for the years ended December 31, 2022 and 2021 in our consolidated statements of operations and comprehensive loss. Over the course of the BVF Funding Agreement, the actual interest rate will be affected by the amount and timing of royalty revenue recognized, if any, and changes in forecasted royalty revenue. There are a number of factors that could materially affect the amount and timing of royalty payments from

Sol-Gel,

none of which are within our control. On a quarterly basis, we will reassess the effective interest rate and adjust the rate prospectively as needed.

The following table shows the activity within the liability account for the years ended December 31, 2022 and 2021:


	December 31,
	2022		2021
	(in thousands)
Liability related to sale of future royalties - beginning balance	$	21,586	$	21,559
Non-cash interest expense recognized		27		27

Liability related to sale of future royalties, net - ending balance	$	21,613	$	21,586

For so long as we have not exercised an option to repurchase the Buyer’s equity interest under the BVF Funding Agreement, (a) if, during

the 36-month period

following the BVF Closing Date, we issue a specified number of shares of our common stock, which we refer to as the Warrant Threshold, and (b) any shares in excess of the Warrant Threshold are issued for consideration to us of less than $3.75 per share (as adjusted for any stock splits, reverse stock splits or other similar recapitalization events), or the Threshold Price, then we are obligated to issue to BVF warrants to purchase a number of shares of our common stock. Such warrants would equal 50% of the number of qualifying shares at an exercise price equal to 1.5 times the price per share of such qualifying shares issued. The requirement to issue warrants to BVF does not apply to certain issuances of our common stock. As of December 31, 2022, the Warrant Threshold has been met and any future qualifying shares of our common stock issued below the Price Threshold will result in warrants to purchase our common stock to be issued to BVF. No warrants have been issued to BVF as of December 31, 2022. Our obligation to issue warrants to BVF under these terms expired on January 8, 2023 without any warrants being issued to BVF.

We determined that the commitment to issue warrants represents a freestanding financial instrument and accounted for it as a liability as of the BVF Closing Date. The fair value of the warrant liability was estimated using the Monte Carlo simulation model. The fair value of the warrant liability as of December 31, 2022 has been included in accrued expenses and other current liabilities on our consolidated balance sheet. The fair value of the warrant liability as of December 31, 2021 has been included in other liabilities on our consolidated balance sheet. Changes in fair value of the warrant liability are included in investment and other income (expense) in our consolidated statements of operations and comprehensive loss. See Note 5 for further discussions of the fair value of the warrants.

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.

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Strategic Agreements - Additional Information (Detail) - Infinity Pharmaceuticals Inc [Member] $ in Thousands		1 Months Ended		3 Months Ended		12 Months Ended
	Mar. 04, 2019 USD ($)	Mar. 31, 2019 USD ($)	Jun. 30, 2013 USD ($)	Mar. 31, 2023 USD ($) product	Mar. 31, 2022 USD ($)	Dec. 31, 2022 USD ($) product	Dec. 31, 2021 USD ($)
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Royalty Expense				$ 441	$ 393	$ 1,563	$ 1,120
Number of distinct product candidates \| product				1		1
Maximum [Member]
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Additional success-based milestone payments to be paid				$ 165,000		$ 165,000
Maximum [Member] \| Current [Member]
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Success-based remaining milestone payments				$ 3,000		$ 3,000
Trailing Mundipharma [Member]
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Royalty percentage on sales, reimbursement of research and development, percentage				4.00%		4.00%
Royalty payments, reimbursement of research and development upon completion				$ 260,000		$ 260,000
Royalty percentage on sales, reimbursement of research and development upon completion, percentage				1.00%		1.00%
Royalty payments, reimbursement of research and development				$ 3,800		$ 3,500
Takeda Agreement Fourth Amendment [Member]
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Royalty Expense							$ 200
Sol Gel Agreement [Member] \| Hedgehog Products [Member]
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Collaborative agreement, total remaining milestone payment amount			$ 9,000
Collaborative agreement, additional milestone payments amount, if circumstances met			37,500
Pelle Pharm And Sol Gel Agreement [Member] \| Hedgehog Products [Member]
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Collaborative agreement, total remaining milestone payment amount			9,000
Collaborative agreement, additional milestone payments amount, if circumstances met			$ 37,500
Takeda Pharmaceutical Company Limited [Member]
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Royalty Expense						$ 300
Takeda Pharmaceutical Company Limited [Member] \| Takeda Agreement Fourth Amendment [Member]
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Investment amount to be paid	$ 6,700
Percentage of investment amount	25.00%	25.00%
Percentage of net expenses incurred	25.00%
Percentage of royalty payments	25.00%
Royalty Expense				$ 100	$ 100
Health Care Royalty Partners I I I L. P. [Member]
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Closing day payment		$ 30,000

Other License Agreements - Additional Information (Detail) - Presage License Agreement - Presage Biosciences, Inc. $ in Millions	1 Months Ended
	Sep. 30, 2017 USD ($)
Related Party Transaction [Line Items]
Compensation payable for grant of rights	$ 4.9
Payment for license	2.9
Incremental Payment
Related Party Transaction [Line Items]
Compensation payable for grant of rights	2.0
Potential Payments on Achievement of Development Regulatory and Commercial Milestones
Related Party Transaction [Line Items]
Milestone payment receivable amount	$ 179.0

Carrying amount as of the balance sheet date of obligations due all related parties.

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Income Taxes

12 Months Ended

Dec. 31, 2022

Jun. 30, 2022

Note 13. Income Taxes

Pre-tax

loss consists of the following jurisdictions (in thousands):


	Years Ended June 30,
	2022			2021			2020
Domestic	$	(54,454	)	$	(41,306	)	$	(47,172	)
Foreign		—			—			—

Pre-tax loss	$	(54,454	)	$	(41,306	)	$	(47,172	)

The reconciliation of income tax computed at the U.S. federal statutory tax rates to income tax expense is as follows (in thousands):


	Years Ended June 30,
	2022						2021						2020
	$			%			$			%			$			%
Tax benefit at U.S. statutory rates	$	11,435			21	%	$	8,674			21	%	$	9,906			21	%
State tax		191			0	%		(99	)		0	%		9			0	%
Warrant liability costs		4,358			8	%		3,806			9	%		(4,803	)		(10	)%
Equity compensation		(71	)		0	%		(6	)		0	%		(2	)		0	%
Increase in valuation allowance		(15,473	)		(28	)%		(10,536	)		(26	)%		(4,473	)		(10	)%
Other		(440	)		(1	)%		(1,847	)		(4	)%		(638	)		(1	)%

	$	0			0	%	$	(8	)		0	%	$	(1	)		0	%

Deferred tax liabilities and assets are comprised of the following (in thousands):


	June 30,
	2022			2021
Deferred tax assets (liabilities):
Deferred revenue	$	20,362		$	16,637
Fixed and intangible assets		13,283			15,924
Share-based payments		4,869			4,182
Tax losses carried forward		29,581			16,104
Compensation accruals		927			727
Consultant and other accruals		25			22
Right-of-use assets		(1,932	)		(1,633	)
Lease liabilities		2,057			1,742
Charitable contributions		7			1
Total deferred tax assets (liabilities)		69,179			53,706

Valuation allowance for deferred tax assets		(69,179	)		(53,706	)

Net deferred tax assets and liabilities	$	—		$	—

We evaluate the recoverability of the deferred tax assets and the amount of the required valuation allowance. Due to the uncertainty surrounding the realization of the tax deductions in future tax returns, we have recorded a valuation allowance against our net deferred tax assets as of June 30, 2022 and 2021. At such time as it is determined that it is more likely than not that the deferred tax assets will be realized, the valuation allowance would be reduced.

We had federal and state net operating loss carryforwards of approximately $133.9 million and $23.8 million as of June 30, 2022. The federal net operating loss will carry forward indefinitely subject to an 80% taxable income limitation. The state net operating loss carryforwards will begin to expire in 2030 unless previously utilized.

Our ability to utilize our net operating

loss

carryforwards may be substantially limited due to ownership changes that have occurred or that could occur in the future under Section 382 of the Internal Revenue Code and similar state laws. During 2022, we completed a study to analyze whether one or more ownership changes had occurred and determined that two such ownership changes did occur. While the ownership changes do limit the amount of net operating loss we are able to use each year, all of our net operating losses are expected to be available for utilization prior to expiring.

None of our prior income tax returns have been selected for examination by a major taxing jurisdiction; however, the statutes of limitations for various filings remain open. The oldest filings subject to potential examination for federal and state purposes are 2019 and 2018, respectively. If we utilize a net operating loss related to a closed tax year, the tax year in which the loss was incurred is subject to adjustment up to the amount of the net operating loss.

We have not reduced any tax benefit on our financial statements due to uncertain tax positions as of June 30, 2022 and we are not aware of any circumstance that would significantly change this result through the end of fiscal year 2022. To the extent we incur

income-tax

related penalties or interest, we will recognize them as additional income tax expense.

12. Income Taxes

We did not have any income tax expense for the years ended December 31, 2022 or 2021.

Our income tax expense for the years ended December 31, 2022 and 2021 differed from the expected U.S. federal statutory income tax expense as set forth below:


	Years Ended December 31,
	2022			2021
	(in thousands)
Expected federal tax benefit	$	(9,317	)	$	(9,505	)
Permanent differences		215			191
State taxes, net of the deferred federal benefit		(1,986	)		(3,024	)
Tax credit carryforwards		(1,533	)		(1,416	)
Adjustments to deferred tax assets and deferred tax liabilities		560			226
Other		15			(93	)
Change in valuation allowance		12,046			13,621

Income tax expense (benefit)	$	—		$	—

The significant components of our deferred tax assets and liabilities are as follows:


	Years Ended December 31,
	2022			2021
	(in thousands)
Deferred tax assets (liabilities):
Net operating loss carryforwards	$	170,880		$	164,969
Tax credit carryforwards		45,270			44,302
Intangible assets		13,212			15,151
Capitalized research and development costs		8,104			—
Accrued expenses		655			1,255
Stock-based compensation		5,183			5,109
Sale of future royalties		13,212			13,557
Other		(105	)		22
Valuation allowance		(256,411	)		(244,365	)

Net deferred tax assets (liabilities)	$	—		$	—

We have recorded a valuation allowance against our deferred tax assets in each of the years ended December 31, 2022, and 2021 because we believe that it is more likely than not that these assets will not be realized. The valuation allowance increased by approximately $12.0 million during the year ended December 31, 2022 primarily due to new federal tax regulations effective for the year ended December 31, 2022 requiring that research and development costs be capitalized and amortized over future periods compared to previous tax regulations which allowed for such expenses to be fully deductible in the year incurred. The increase in the valuation allowance is also largely attributable to the increase in our unbenefited net operating loss for the current period. The valuation allowance increased by approximately $13.6 million during the year ended December 31, 2021 primarily as a result of the increase in our unbenefited net operating loss for the period.

Subject to the limitations described below, at December 31, 2022, we have cumulative net operating loss carryforwards of approximately $653.2 million and $533.3 million available to reduce federal and state taxable income, respectively. For federal purposes, the net operating loss carryforwards have begun to expire and will continue to expire through 2037 for losses incurred before January 1, 2018. Federal losses generated after

December 31, 2017 do not expire. As of December 31, 2022, we have approximately $128.5 million of federal losses that do not expire. The state net operating loss carryforwards begin to expire in 2031 and continue to expire through 2041. In addition, we have cumulative federal and state tax credit carryforwards of $37.7 million and $9.6 million, respectively, available to reduce federal and state income taxes which expire through 2041 and 2036, respectively. Our net operating loss carryforwards and tax credit carryforwards are limited as a result of certain ownership changes, as defined under Sections 382 and 383 of the Internal Revenue Code. This limits the annual amount of these tax attributes that can be utilized to offset future taxable income or tax liabilities. The amount of the annual limitation is determined based on our value immediately prior to an ownership change. Subsequent ownership changes may affect the limitation in future years. The net operating losses and tax credit carryforwards that have and will expire unused in the future as a result of Section 382 and 383 limitations have been excluded from the amounts disclosed above. The latest Section 382 study was performed through December 31, 2021. Ownership changes after that date could further reduce the Company’s ability to utilize the net operating loss and other attribute carryforwards.

At December 31, 2022 and 2021, we had no unrecognized tax benefits. As of December 31, 2022 and 2021, we had no accrued interest or penalties related to uncertain tax positions and no amounts have been recognized in our consolidated statements of operations and comprehensive loss. We will recognize interest and penalties related to uncertain tax positions in income tax expense. For all years through December 31, 2022, we generated research credits but have not conducted a study to document the

qual

ified activities. This study may result in an adjustment to our research and development credit carryforwards; however, until a study is completed and any adjustment is known, no amounts are being presented as an uncertain tax position. A full valuation allowance has been provided against our research and development credits and, if an adjustment is required, this adjustment would be offset by an adjustment to the deferred tax asset established for the research and development credit carryforwards and the valuation allowance.

We file U.S. federal and Massachusetts state income tax returns. The statute of limitations for assessment by the Internal Revenue Service, or IRS, and state tax authorities is closed for tax years prior to 2019, although carryforward attributes that were generated prior to tax year 2019 may still be adjusted upon examination by the IRS or state tax authorities if they either have been or will be used in a future period.

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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Stockholders' Equity - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended				6 Months Ended	9 Months Ended		12 Months Ended
	Mar. 31, 2023	Dec. 31, 2022	Mar. 31, 2022	Dec. 31, 2021	Dec. 31, 2022	Mar. 31, 2023	Mar. 31, 2022	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2020	Nov. 10, 2020	Nov. 08, 2017
Class of Stock [Line Items]
Fair value of warrants	$ 0					$ 0		$ 1,603	$ 22,355	$ 40,483
Offering price per share								$ 52
Payments of Stock Issuance Costs						0	$ 3,672	$ 3,652	64	3,731
Common stock Value Issued				$ 48,653				48,673	$ 3,136	$ 69,231
Unsold Securities Shares and Warrants Under Agreement					$ 107,500			107,500
Aggregate Value of Securities Available Under Agreement		$ 123,400			$ 123,400			$ 123,400
Number Of Warrants Exercised								0	131,000	0
Number Of Shares Issued On Warrant Exercise									48,000
Change in fair value of warrant liability	$ 0		$ 12,773			$ 1,603	$ 20,819	$ 20,752	$ 18,122	$ (22,870)
Total authorized share capital								226,100,000
Common stock, shares authorized	226,000,000					226,000,000		226,000,000	226,000,000
Common stock, par value	$ 0.00000002					$ 0.00000002		$ 0.00000002	$ 0.00000002
Preferred stock, shares authorized		100,000			100,000			100,000	100,000
Preferred stock, par value		$ 0.01			$ 0.01			$ 0.01	$ 0.01
Preferred stock, shares issued								100,000
Common stock voting rights								one vote per share
Preferred stock, shares outstanding		0			0			0	0
Shelf registration expiration date						May 18, 2023
Warrant [Member]
Class of Stock [Line Items]
Fair value of warrants								$ 1,600
Exercise price		$ 50.8			$ 50.8			$ 50.8
Warrants outstanding		802,949,000			802,949,000			802,949
Change in fair value of warrant liability		$ 0			$ 1,600
Underwritten Registered Offering
Class of Stock [Line Items]
Common stock share issued								1,006,250		1,617,188
Offering price per share										$ 32
Proceeds from Issuance Initial Public Offering								$ 48,700		$ 48,500
Payments of Stock Issuance Costs								3,700		$ 3,300
ATM Sales Agreement
Class of Stock [Line Items]
Common stock share issued									47,904	273,584
Common stock Value Issued									$ 3,100	$ 20,700
Aggregate Value of Securities Available Under Agreement									$ 100	$ 400
Two Thousand And Twenty At The Market Sale Agreement Member
Class of Stock [Line Items]
Aggregate value of securities available under shelf registration statement		60,000			60,000
Maximum
Class of Stock [Line Items]
Sale of shares and warrants under agreement					200,000			200,000
Maximum \| ATM Sales Agreement
Class of Stock [Line Items]
Sale of shares under agreement												$ 30,000
Maximum \| Two Thousand And Twenty At The Market Sale Agreement Member
Class of Stock [Line Items]
Sale of shares under agreement		$ 60,000			$ 60,000			$ 60,000			$ 60,000
Torreya Partners [Member] \| Warrant [Member]
Class of Stock [Line Items]
Exercise price	$ 6.8					$ 6.8
Warrants outstanding	102,513,000					102,513,000

Prepaid Expenses and Other Current Assets

3 Months Ended

12 Months Ended

Mar. 31, 2023

Dec. 31, 2022

Prepaid Expenses and Other Current Assets

8. Prepaid Expenses and Other Current Assets

Prepaid expenses and other current assets consist of the following:


	March 31, 2023		December 31, 2022
	(in thousands)
Prepaid expenses	$	2,036	$	1,429
Other current assets		590		560

Total prepaid expenses and other current assets	$	2,626	$	1,989

6. Prepaid Expenses and Other Current Assets

Prepaid expenses and other current assets consist of the following:


	December 31,
	2022		2021
	(in thousands)
Prepaid expenses	$	1,429	$	1,143
Other current assets		560		399

Total prepaid expenses and other current assets	$	1,989	$	1,542

The Company and Summary of Significant Accounting Policies - Revenue Associated With The Following license agreements (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended		12 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Mar. 31, 2023	Mar. 31, 2022	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2020
Recognized Revenue Associated with The Following License Agreements [Line Items]
Revenues	$ 5,894	$ 9,694	$ 47,359	$ 29,283	$ 40,697	$ 34,796	$ 27,756
KKC Agreements [Member]
Recognized Revenue Associated with The Following License Agreements [Line Items]
Revenues					40,697	34,356	26,386
Helsinn License Agreement [Member]
Recognized Revenue Associated with The Following License Agreements [Line Items]
Revenues					0	440	1,370
Services Performed Over Time [Member]
Recognized Revenue Associated with The Following License Agreements [Line Items]
Revenues	5,598	9,694	46,430	26,970
Pass through services at a point in time [Member]
Recognized Revenue Associated with The Following License Agreements [Line Items]
Revenues	$ 296	$ 0	$ 929	$ 2,313
Pass through services at a point in time [Member] \| Service
Recognized Revenue Associated with The Following License Agreements [Line Items]
Revenues					3,393	3,494	0
Pass through services at a point in time [Member] \| License
Recognized Revenue Associated with The Following License Agreements [Line Items]
Revenues					0	0	20,988
Services performed over time [Member] \| Service
Recognized Revenue Associated with The Following License Agreements [Line Items]
Revenues					$ 37,304	$ 31,302	$ 6,768

Amount of revenue recognized from goods sold, services rendered, insurance premiums, or other activities that constitute an earning process. Includes, but is not limited to, investment and interest income before deduction of interest expense when recognized as a component of revenue, and sales and trading gain (loss).

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-Subparagraph (SX 210.13-01(a)(4)(iii)(A))
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Reference 17: http://www.xbrl.org/2003/role/disclosureRef
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Reference 18: http://www.xbrl.org/2003/role/disclosureRef
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Reference 19: http://www.xbrl.org/2003/role/disclosureRef
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Reference 22: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher FASB
-Name Accounting Standards Codification
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Accrued Liabilities, Current [Abstract]

Strategic Restructuring - Summary of Restructuring Costs (Details) - Infinity Pharmaceuticals Inc [Member] $ in Thousands	3 Months Ended
	Mar. 31, 2023 USD ($)
Restructuring Cost and Reserve [Line Items]
Charges incurred during the three months ended March 31, 2023	$ 1,720
Amounts paid during the three months ended March 31, 2023	58
Less non-cash charges incurred during the three months ended March 31, 2023	821
Accrued restructuring costs as of March 31, 2023	841
Employee severance, benefits and related taxes
Restructuring Cost and Reserve [Line Items]
Charges incurred during the three months ended March 31, 2023	899
Amounts paid during the three months ended March 31, 2023	58
Less non-cash charges incurred during the three months ended March 31, 2023	0
Accrued restructuring costs as of March 31, 2023	841
Stock-based compensation
Restructuring Cost and Reserve [Line Items]
Charges incurred during the three months ended March 31, 2023	821
Amounts paid during the three months ended March 31, 2023	0
Less non-cash charges incurred during the three months ended March 31, 2023	821
Accrued restructuring costs as of March 31, 2023	$ 0

Accrued Liabilities (Tables)

12 Months Ended

Jun. 30, 2022

Accrued Liabilities

Accrued liabilities consisted of the following, in thousands:


	June 30,
	2022		2021
Accrued pre-clinical and clinical trial expenses	$	5,264	$	4,004
Accrued compensation and benefits		4,346		3,513
Accrued legal and professional services expenses		1,036		813
Other		174		72

Total accrued liabilities	$	10,820	$	8,402

Summary of Stock Option Activity (Detail) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended	9 Months Ended	12 Months Ended
	Mar. 31, 2023	Mar. 31, 2023	Dec. 31, 2022	Jun. 30, 2022
Number of Options
Beginning Balance		996,700,000		833,427,000
Granted		462,201,000		356,237,000
Expired		(7,834,000)
Exercised				(17,428,000)
Forfeited / Cancelled		(198,136,000)		(175,536,000)
Ending balance	1,252,931,000	1,252,931,000		996,700,000
Vested and exercisable at end of period	664,330,000	664,330,000		542,232,000
Weighted- Average Exercise Price
Beginning Balance		$ 57		$ 60.2
Granted		10.66		51.4
Expired		52.62
Exercised				32.8
Forfeited / Cancelled		40.37		63
Ending balance	$ 42.56	42.56		57
Vested and exercisable at end of period	$ 56.7	$ 56.7		$ 59
Weighted Average Remaining Contractual Term (in years)
Outstanding at end of period		7 years 6 months		7 years 4 months 24 days
Vested and exercisable at end of period		6 years 2 months 12 days		6 years 2 months 12 days
Aggregate Intrinsic Value
Outstanding at end of period	$ 0	$ 0		$ 50,600
Vested and exercisable at end of period	$ 0	$ 0		$ 0
Infinity Pharmaceuticals Inc [Member]
Number of Options
Beginning Balance	14,663,697		12,689,439
Granted			2,886,324
Expired			(656,229)
Exercised			(17,708)
Forfeited / Cancelled			(238,129)
Ending balance			14,663,697
Vested and exercisable at end of period			10,903,188
Weighted- Average Exercise Price
Beginning Balance	$ 2.93		$ 3.53
Granted	$ 1.54		1.36
Expired			8.3
Exercised			0.83
Forfeited / Cancelled			1.46
Ending balance			2.93
Vested and exercisable at end of period			$ 3.33
Weighted Average Remaining Contractual Term (in years)
Outstanding at end of period			6 years 3 months 18 days
Vested and exercisable at end of period			5 years 7 months 6 days

Defined Contribution Benefit Plan (Detail) - Infinity Pharmaceuticals Inc [Member] - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Retirement Benefits [Line Items]
Participant contributions, employee	6.00%	6.00%
Employer matching contribution	$ 0.3	$ 0.2

Commitments and Contingencies

3 Months Ended

9 Months Ended

12 Months Ended

Mar. 31, 2023

Dec. 31, 2022

Jun. 30, 2022

Commitments and Contingencies

Note 7. Commitments and Contingencies

We have contracted with various consultants and third parties to assist us in

pre-clinical

research and development and clinical trials work for our leading drug compounds. The contracts are terminable at any time, but obligate us to reimburse the providers for any time or costs incurred through the date of termination. We also have employment agreements with certain of our current employees that provide for severance payments and accelerated vesting for share-based awards if their employment is terminated under specified

circumstances.

Presage License Agreement

As discussed in Note 4, we are party to a license agreement with Presage under which we may be required to make future payments upon the achievement of certain development, regulatory and commercial milestones, as well as potential future royalties based upon net sales. As of

March

31, 202

, we had

t accrued any amounts for potential future payments as achievement of the milestones had not been

met.

Torreya Partners

In October 2022, we engaged Torreya Partners as a financial advisor to help explore additional strategic opportunities. As part of this engagement, we issued warrants to acquire shares of our common stock having a value equal to $0.5 million. These warrants were issued during the three months ended March 31, 2023. We will also pay Torreya Partners a transaction fee equal to 20% of aggregate consideration, up to a maximum of $2.0 million, upon completion of a strategic transaction. As of March 31, 2023, we have not accrued any amount for potential future transaction fees.

Note 10. Commitments and Contingencies

We have contracted with various consultants and third parties to assist us in

pre-clinical

Presage License Agreement

As discussed in Note 4. Other License Agreements, we are party to a license agreement with Presage under which we may be required to make future payments upon the achievement of certain development, regulatory and commercial milestones, as well as potential future royalties based upon net sales. As of June 30, 2022, we had not accrued any amounts for potential future payments as achievement of the milestones had not been met.

COVID-19

As a result of the ongoing

COVID-19

pandemic, various public health orders and guidance measures have been implemented across much of the U.S., and across the globe, including in the locations of our office, clinical trial sites, key vendors and partners. Despite the relaxation of many governmental orders earlier this year, the ongoing

COVID-19

pandemic still impacts the normal conduct of business. While we continue to enroll and dose patients in our clinical trials, our clinical development program timelines may continue to be subject to potential negative impacts from the ongoing pandemic in the U.S. and globally.

We may experience enrollment delays and suspensions, patient withdrawals, postponement of planned clinical or preclinical studies, redirection of site resources from studies, and study deviations or noncompliance. We may also need to maintain or implement study modifications, suspensions, or terminations, the introduction of additional remote study procedures and modified informed consent procedures, study site changes, direct delivery of investigational products to patient homes or alternative sites, which may require state licensing, and changes or delays in site monitoring. The foregoing may require that we consult with relevant review and ethics committees, Institutional Review Boards and the FDA. The foregoing may also impact the integrity of our study data. The ongoing

COVID-19

pandemic may further increase the need for clinical trial patient monitoring and regulatory reporting of adverse effects, and may delay regulatory authority meetings, inspections, assessments, or the regulatory review of marketing or investigational applications or submissions.

Not only might the ongoing

COVID-19

pandemic impact the conduct of our clinical trials, but it may also impact our ability to procure the necessary supply of our investigational drug products, as well as any ancillary supplies necessary for the conduct of our studies. Third party manufacturers may also need to implement measures and changes, or deviate from typical manufacturing requirements that may otherwise adversely impact our product candidates.

Government stimulus programs enacted in response to the ongoing

COVID-19

pandemic have not had a material impact on our financial condition, results of operations, or liquidity.

Nasdaq Bid Price Letter

On May 9, 2022, we received a letter from Nasdaq indicating that, for the last thirty consecutive business days, the bid price for our common stock had closed below the minimum $1.00 per share requirement for continued listing on the Nasdaq Capital Market.

In accordance with Nasdaq listing rules, we were provided an initial period of 180 calendar days, or until November 7, 2022, to regain compliance. The letter states that Nasdaq will provide written notification that we have achieved compliance with its rules if at any time before November 7, 2022, the bid price of our common stock closes at $1.00 per share or more for a minimum of ten consecutive business days. The Nasdaq letter had no immediate effect on the listing or trading of our common stock and the common stock continued to trade on The Nasdaq Capital Market.

If we do not regain compliance with Nasdaq listing rules by November 7, 2022, we may be eligible for an additional 180 calendar day compliance period. To qualify, we would be required to meet the continued listing requirement for market value of publicly held shares and all other initial listing standards for the Nasdaq Capital Market, with the exception of the bid price requirement, and would need to provide written notice of our intention to cure the deficiency during the second compliance period, by effecting a reverse stock split, if necessary. However, if it appears to Nasdaq that we will not be able to cure the deficiency, or if we are otherwise not eligible, Nasdaq would notify us that our securities would be subject to delisting. In the event of such a notification, we may appeal Nasdaq’s determination to delist our securities, but there can be no assurance Nasdaq would grant our request for continued listing.

We have not regained compliance with Nasdaq listing rules as of September 8, 2022.

Commitments and Contingencies

11. Commitments and Contingencies

On April 5, 2019, we entered into a lease agreement, or the Lease, with Sun Life Assurance Company of Canada, or the Landlord, effective April 3, 2019, or the Commencement Date, for the lease of approximately 10,097 square feet of office space at 1100 Massachusetts Avenue, Cambridge, Massachusetts, or the Leased Premises. The term of the Lease commenced on the Commencement Date and expires on August 1, 2024, or the Expiration Date, approximately five years after the Rent Commencement Date as defined below.

Beginning August 1, 2019, or the Rent Commencement Date, the total base rent of the Lease was $47,961 per month and increases by approximately 3% on each anniversary of the Rent Commencement Date until the Expiration Date. In addition to the base rent, we are also responsible for our share of the operating expenses, insurance, real estate taxes and certain capital costs, and we are responsible for utility expenses in the Leased Premises, all in accordance with the terms of the Lease. Pursuant to the terms of the Lease, we provided a security deposit in the form of a letter of credit in the initial amount of $300,000, which was reduced to $150,000 during the year ended December 31, 2021 in accordance with the terms of the Lease. The remaining portion of the security deposit plus the associated bank fee of $7,500 is included on our condensed consolidated balance sheet as restricted cash as of March 31, 2023. The Landlord provided a lease incentive allowance of $0.6 million to fund certain improvements made by us to the Leased Premises.

As of March 31, 2023, future minimum lease payments of our operating lease liabilities are approximately $0.8 million.

10. Commitments and Contingencies

Beginning August 1, 2019, or the Rent Commencement Date, the total base rent of the Lease was $47,961 per month and increases by approximately 3% on each anniversary of the Rent Commencement Date until the Expiration Date. In addition to the base rent, we are also responsible for our share of the operating expenses, insurance, real estate taxes and certain capital costs, and we are responsible for utility expenses in the Leased Premises, all in accordance with the terms of the Lease. Pursuant to the terms of the Lease, we provided a security deposit in the form of a letter of credit in the initial amount of $300,000, which was reduced to $150,000 during the year ended December 31, 2021 in accordance with the terms of the Lease. The remaining portion of the security deposit plus the associated bank fee of $7,500 is included in our consolidated balance sheet as restricted cash as of December 31, 2022 and 2021. The Landlord provided a lease incentive allowance of $0.6 million to fund certain improvements to be made by us to the Leased Premises.

Subject to certain conditions specified in the Lease, we have the right to extend the term of the Lease for two years, if we provide notice to the Landlord not earlier than twelve months, nor later than nine months, prior to expiration of the Lease. The base rent for the extension term shall be equal to the greater of the base rent in effect for the last year of the initial lease term or a fair market base rent determined according to the terms of the Lease.

The Lease contains customary provisions allowing the Landlord to, among other things, accelerate payments under the Lease or terminate the Lease in its entirety if we fail to remedy a default of any of our obligations under the Lease within specified time periods or upon our bankruptcy or insolvency.

We have recorded a

right-of-use

asset and lease liability related to our data center lease and the Lease. The lease of our data center expired during the year ended December 31, 2021. The following is a summary of our current lease included in the respective balance sheet classifications:


	December 31,
	2022		2021
	(in thousands)
Assets
Operating lease right-of-use assets	$	697	$	1,064

Liabilities
Accrued expenses and other current liabilities	$	593	$	519
Operating lease liability		324		917

Total lease liabilities	$	917	$	1,436

As of December 31, 2022, the weighted average term remaining on our lease is 1.6 years, and the weighted average discount rate is 10%. As of December 31, 2021, the weighted average term remaining on our lease was 2.6 years, and the weighted average discount rate was 10%.

Operating lease costs, including variable costs, of $0.7 million were incurred during both the years ended December 31, 2022 and 2021. Cash paid for amounts included in the measurement of lease liabilities were $0.6 million and $0.7 million during the years ended December 31, 2022 and 2021, respectively.

As of December 31, 2022, future minimum lease payments of our operating lease liabilities are as follows:


	Operating Leases
	(in thousands)
2023	$	658
2024		334

Total future minimum lease payments		992
Less: imputed interest		(75	)

Total lease liability	$	917

Stockholders' (Deficit) Equity	3 Months Ended	9 Months Ended	12 Months Ended
Stockholders' (Deficit) Equity	Mar. 31, 2023	Mar. 31, 2023	Dec. 31, 2022	Jun. 30, 2022
Stockholders' (Deficit) Equity		Note 9. Stockholders’ Equity Equity Transactions Shelf Registration Statement We have a shelf registration statement that permits us to sell, from time to time, up to $ 200.0 million of common stock, preferred stock and warrants. The shelf registration was filed and declared effective in May 2020, and carried forward approximately $ 107.5 million of unsold securities registered under the prior shelf registration statement. As of March 31, 2023, there was $ 123.4 million aggregate value of securities available under the shelf registration statement, including $ 60.0 million remaining available under the 2020 ATM Sales Agreement described below. The shelf registration expires on May 18, 2023. At-The-Market Equity Offering On November 10, 2020, we entered into an At-The-Market Equity Offering Sales Agreement (the “2020 ATM Sales Agreement”), pursuant to which we may sell an aggregate of up to $ 60.0 million of our common stock pursuant to the shelf registration statement. As of March 31, 202 3 , there was $ 60.0 million remaining available under the 2020 ATM Sales Agreement. Warrants As of March 31, 2023, we have outstanding warrants to purchase 802,949 shares of our common stock related to a private placement equity financing that we closed in May 2018. The warrants are fully vested, exercisable at a price of $ 50.80 per share and expire in May 2023. Pursuant to the terms of the warrants, we could be required to settle the warrants in cash in the event of an acquisition of us and, as a result, the warrants are required to be measured at fair value and reported as a liability in the Condensed Consolidated Balance Sheets. The warrants were revalued as of March 31, 202 3 and June 30, 2022 at zero and $ 1.6 million, respectively. The change in fair value of zero and $ 1.6 million was recorded on the Condensed Consolidated Statement of Operations for the three and nine months ended March 31, 2023. As of March 31, 2023, we also have outstanding warrants to purchase 102,513 shares of our common stock issued to Torreya Partners. The warrants are fully vested, exercisable at a price of $6.80 per share and expire in October 2027.		Note 8. Stockholders’ Equity Equity Transactions Underwritten Registered Offering During the year ended June 30, 2022, we completed an underwritten registered offering of 1,006,250 shares of common stock at a price per share of $52.00 for net cash proceeds of $48.7 million, after offering costs of $3.7 million. During the year ended June 30, 2020, we completed an underwritten registered offering of 1,617,188 shares of common stock at a price per share of $32.00 for net cash proceeds of $48.5 million, after offering costs of $3.3 million. Shelf Registration Statement We have a shelf registration statement that permits us to sell, from time to time, up to $200.0 million of common stock, preferred stock and warrants. The shelf registration was filed and declared effective in May 2020, replacing our prior shelf registration statement that was filed and declared effective in May 2017, and carrying forward approximately $107.5 million of unsold securities registered under the prior shelf registration statement. As of June 30, 2022, there was $123.4 million aggregate value of securities available under the shelf registration statement. At-The-Market Equity Offering On November 10, 2020, we entered into an At-The-Market Equity Offering Sales Agreement (the “2020 ATM Sales Agreement”), pursuant to which we may sell an aggregate of up to $60.0 million of our common stock pursuant to the shelf registration statement. We had previously entered into an At-The-Market Equity Offering Sales Agreement in November 2017 (the “2017 ATM Sales Agreement”), pursuant to which we could sell an aggregate of up to $30.0 million of our common stock pursuant to the shelf registration statement. The 2017 ATM Sales Agreement expired on November 8, 2020. During the year ended June 30, 2020, we sold 273,584 shares under the 2017 ATM Sales Agreement for net proceeds of $20.7 million, after costs of $0.4 million. During the year ended June 30, 2021, we sold 47,904 shares under the 2017 ATM Sales Agreement for net proceeds of $3.1 million, after costs of $0.1 million. As of June 30, 2022, there was $60.0 million available under the 2020 ATM Sales Agreement. Warrants As of June 30, 2022, we have outstanding warrants to purchase 802,949 shares of our common stock. The warrants are fully vested, exercisable at a price of $50.80 per share and expire in May 2023. Pursuant to the terms of the warrants, we could be required to settle the warrants in cash in the event of an acquisition of the Company and, as a result, the warrants are required to be measured at fair value and reported as a liability in the Balance Sheets. The warrants were revalued as of June 30, 2022, 2021 and 2020 at $1.6 million, $22.4 million and $40.5 million, respectively. The changes in fair value were recorded on our Statements of Operations for the years ended June 30, 2022, 2021 and 2020. During the year ended June 30, 2021, a warrant holder completed a cashless exercise of 131 warrants for 48 shares of common stock. No warrants were exercised during the years ended June 30, 2022 and 2020. Description of Capital Stock Our total authorized share capital is 226,100,000 shares consisting of 226,000,000 shares of common stock, $0.00000002 par value per share, and 100,000 shares of preferred stock, $0.01 par value per share. Common Stock The holders of common stock are entitled to one vote per share. In the event of a liquidation, dissolution or winding up of our affairs, holders of the common stock will be entitled to share ratably in all our assets that are remaining after payment of our liabilities and the liquidation preference of any outstanding shares of preferred stock. All outstanding shares of common stock are fully paid and non-assessable. The rights, preferences and privileges of holders of common stock are subject to any series of preferred stock that we have issued or that we may issue in the future. The holders of common stock have no pre-emptive rights and are not subject to future calls or assessments by us. Preferred Stock Our board of directors has the authority to issue up to 100,000 shares of preferred stock with a par value of $.01 per share in one or more series and to fix the rights, preferences, privileges and restrictions in respect of that preferred stock, including dividend rights, dividend rates, conversion rights, voting rights, terms of redemption (including sinking fund provisions), redemption prices and liquidation preferences, and the number of shares constituting such series and the designation of any such series, without future vote or action by the stockholders. Therefore, the board of directors, without the approval of the stockholders, could authorize the issue of preferred stock with voting, conversion and other rights that could affect the voting power, dividend and other rights of the holders of shares or that could have the effect of delaying, deferring or preventing a change of control. There were no shares of preferred stock outstanding as of June 30, 2022 or 2021.
Infinity Pharmaceuticals Inc [Member]
Stockholders' (Deficit) Equity	14. Stockholders’ (Deficit) Equity Common Stock Sales Facility On June 28, 2019, we entered into a Capital on Demand Sales Agreement with JonesTrading Institutional Services LLC, or JonesTrading, and on July 29, 2019 we amended and restated the sales agreement to add B. Riley Securities (f/k/a B. Riley FBR, Inc.), or B. Riley Securities, as a party to the agreement. On July 27, 2021, we entered into an amendment to the agreement to increase the maximum aggregate offering price of the shares of common stock that we may issue and sell from time to time under the agreement by $75.0 million to an aggregate of $95.0 million. We refer to the amended and restated sales agreement, as amended, as the ATM Sales Agreement. During the year ended December 31, 2022, a portion of the aggregate offering price totaling $11.8 million expired without sale. As of March 31, 2023, we had an aggregate of $75.0 million available for future sales. Pursuant to the ATM Sales Agreement we may offer and sell shares of our common stock from time to time through JonesTrading or B. Riley Securities, each acting as our sales agent. We have agreed to pay commissions to the sales agents for their services in acting as agents in the sale of our common stock in the amount of up to 3.0% of the gross proceeds from sales of our common stock pursuant to the ATM Sales Agreement. Sales of shares of our common stock under the ATM Sales Agreement may be made by any method that is deemed to be an “at-the-market offering” as defined in Rule 415(a)(4) promulgated under the Securities Act of 1933, as amended. With our prior written approval, JonesTrading or B. Riley Securities may also sell the shares by any other method permitted by law, including in negotiated transactions. We and JonesTrading or B. Riley Securities may suspend or terminate the offering of shares upon notice to the other parties and subject to other conditions. During the three months ended March 31, 2023 and 2022, we did not sell any shares under the ATM Sales Agreement.		13. Stockholders’ (Deficit) Equity Common Stock Sales Facility On June 28, 2019, we entered into a Capital on Demand Sales Agreement with JonesTrading Institutional Services LLC, or JonesTrading, and on July 29, 2019 we amended and restated the sales agreement to add B. Riley Securities (f/k/a B. Riley FBR, Inc.), or B. Riley Securities, as a party to the agreement. On July 27, 2021, we entered into an amendment to the agreement to increase the maximum aggregate offering price of the shares of common stock that we may issue and sell from time to time under the agreement by $75.0 million to an aggregate of $95.0 million. We refer to the amended and restated sales agreement, as amended, as the ATM Sales Agreement. During the year ended December 31, 2022, a portion of the aggregate offering price totaling $11.8 million expired without sale. As of December 31, 2022, we had an aggregate of $75.0 million available for future sales. Pursuant to the ATM Sales Agreement we may offer and sell shares of our common stock from time to time through JonesTrading or B. Riley Securities, each acting as our sales agent. We have agreed to pay commissions to the sales agents for their services in acting as agents in the sale of our common stock in the amount of up to 3.0% of the gross proceeds from sales of our common stock pursuant to the ATM Sales Agreement. Sales of shares of our common stock under the ATM Sales Agreement may be made by any method that is deemed to be an “at-the-market-offering” as defined in Rule 415(a)(4) promulgated under the Securities Act of 1933, as amended. With our prior written approval, JonesTrading or B. Riley Securities may also sell the shares by any other method permitted by law, including in negotiated transactions. We and JonesTrading or B. Riley Securities may suspend or terminate the offering of shares upon notice to the other parties and subject to other conditions. During the year ended December 31, 2022, we did not sell any shares under the ATM Sales Agreement. During the year ended December 31, 2021, we issued and sold 89,520 shares of common stock at a weighted average price per share of $3.83 at-the-market pursuant to the ATM Sales Agreement for $0.3 million in net proceeds. Public Offering On February 11, 2021, we entered into a purchase agreement with Piper Sandler & Co., as representative of the underwriters named therein, pursuant to which we issued and sold to the underwriters in an underwritten public offering an aggregate of 24,150,000 shares of our common stock, including 3,150,000 shares of common stock sold in connection with the exercise in full of a 15% over-allotment option by the underwriters. The public offering price was $3.80 per share. The gross proceeds to us from this offering were approximately $91.8 million. After underwriting discounts and commissions and offering expenses, we received net proceeds from the offering of approximately $85.8 million. Warrants On February 24, 2014, we entered into a facility agreement with affiliates of Deerfield Management Company, L.P., or Deerfield. In connection with the execution of the original facility agreement, we issued to Deerfield warrants to purchase an aggregate of 1,000,000 shares of common stock at an exercise price of $13.83 per share. The warrants have dividend rights to the same extent as if the warrants were exercised into shares of common stock. The warrants expire on the seventh anniversary of their issuance and contain certain limitations that prevent the holder from acquiring shares upon exercise of a warrant that would result in the number of shares beneficially owned by the holder exceeding 9.985% of the total number of shares of common stock then issued and outstanding. During the year ended December 31, 2021, the warrants expired without being exercised.

Share Based Compensation - Summary of RSU activity and related data (Detail) - $ / shares	9 Months Ended	12 Months Ended
	Mar. 31, 2023	Jun. 30, 2022
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Nonvested, Number of Shares [Roll Forward]
Beginning balance	9,220	20,033
Vested		(6,500)
Forfeited/Cancelled		(4,313)
Ending balance		9,220
Weighted average grant date fair value
Beginning balance	$ 69.8	$ 69.8
Vested		69.8
Forfeited/Cancelled		69.8
Ending balance		$ 69.8
Restricted Stock Units (RSUs) [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Nonvested, Number of Shares [Roll Forward]
Beginning balance	9,220
Vested	(9,220)
Ending balance	0	9,220
Weighted average grant date fair value
Beginning balance	$ 69.8
Vested	69.8
Ending balance	$ 0	$ 69.8

The Company and Summary of Significant Accounting Policies - Schedule of Property and Equipment, Depreciated Periods (Detail)	12 Months Ended
	Dec. 31, 2022	Jun. 30, 2022
Maximum
Property, Plant and Equipment [Line Items]
Property, plant and equipment, useful life		7 years
Minimum
Property, Plant and Equipment [Line Items]
Property, plant and equipment, useful life		3 years
Computer equipment and software \| Maximum \| Infinity Pharmaceuticals Inc [Member]
Property, Plant and Equipment [Line Items]
Property, plant and equipment, useful life	5 years
Computer equipment and software \| Minimum \| Infinity Pharmaceuticals Inc [Member]
Property, Plant and Equipment [Line Items]
Property, plant and equipment, useful life	3 years
Furniture and fixtures \| Maximum \| Infinity Pharmaceuticals Inc [Member]
Property, Plant and Equipment [Line Items]
Property, plant and equipment, useful life	10 years
Furniture and fixtures \| Minimum \| Infinity Pharmaceuticals Inc [Member]
Property, Plant and Equipment [Line Items]
Property, plant and equipment, useful life	7 years

Strategic Restructuring - (Table)

3 Months Ended

Mar. 31, 2023

Restructuring and Related Costs [Table Text Block]

Statement [Table]


	Charges incurred during the three months ended March 31, 2023		Amounts paid during the three months ended March 31, 2023		Less non-cash charges incurred during the three months ended March 31, 2023		Accrued restructuring costs as of March 31, 2023
	(in thousands)
Employee severance, benefits and related taxes	$	899	$	58	$	—	$	841
Stock-based compensation		821		—		821		—

Total restructuring	$	1,720	$	58	$	821	$	841

Strategic Agreements (Tables)

12 Months Ended

Dec. 31, 2022

Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]

Summary of Payments Made to Counterparty, Multiplier


Time Period	Multiple
From the Takeda Amendment Effective Date until June 30, 2022		145	%
From July 1, 2022 through June 30, 2023		155	%
From July 1, 2023 through June 30, 2024		165	%
From July 1, 2024 through June 30, 2025		175	%

Cash, Cash Equivalents and Available-for-Sale Securities	3 Months Ended	12 Months Ended
	Mar. 31, 2023	Dec. 31, 2022
Cash, Cash Equivalents and Available-for-Sale Securities	6. Cash, Cash Equivalents and Available-for-Sale Securities As of March 31, 2023 and December 31, 2022, we had cash and cash equivalents of $25.7 million and $38.3 million, respectively. We have not incurred any unrealized gains or losses on our cash and cash equivalents balances as of March 31, 2023 and December 31, 2022. During the three months ended March 31, 2022, we held debt securities classified as available-for-sale securities. We had no material realized gains or losses on our available-for-sale securities for the three months ended March 31, 2022. We held no such securities during the three months ended March 31, 2023.
Infinity Pharmaceuticals Inc [Member]
Cash, Cash Equivalents and Available-for-Sale Securities		4. Cash, Cash Equivalents and Available-for-Sale Securities As of December 31, 2022 and 2021, we had cash and cash equivalents of $38.3 million and $80.7 million, respectively. We have not incurred any unrealized gains or losses on our cash and cash equivalents balances as of December 31, 2022 and 2021. During the years ended December 31, 2022 and 2021, we held debt securities classified as available-for-sale securities. We had no material realized gains or losses on our available-for-sale securities for the years ended December 31, 2022 and 2021.

Prepaid Expenses and Other Current Assets (Detail) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022	Jun. 30, 2022	Dec. 31, 2021	Jun. 30, 2021
Total prepaid expenses and other current assets	$ 3,867		$ 3,830		$ 3,809
Infinity Pharmaceuticals Inc [Member]
Prepaid expenses	2,036	$ 1,429		$ 1,143
Other current assets	590	560		399
Total prepaid expenses and other current assets	$ 2,626	$ 1,989		$ 1,542

The Company and Summary of Significant Accounting Policies - Additional Information (Detail)		3 Months Ended		6 Months Ended	9 Months Ended		12 Months Ended
	Feb. 22, 2023	Mar. 31, 2023 USD ($) Segment shares	Mar. 31, 2022 USD ($) shares	Dec. 31, 2022 USD ($)	Mar. 31, 2023 USD ($) shares	Mar. 31, 2022 USD ($) shares	Dec. 31, 2022 USD ($) segment institution issuer award	Jun. 30, 2022 USD ($) Segment shares	Dec. 31, 2021 USD ($)	Jun. 30, 2021 USD ($) Segment shares	Jun. 30, 2020 USD ($) shares	Sep. 30, 2022 USD ($)
Targeted or Tracking Stock, Stock [Line Items]
Reduction of workforce				27.00%
Severance benefits, and related costs				$ 2,400,000
Unrecognized tax benefits								$ 0		$ 0
Accumulated deficit		$ (395,968,000)		(396,000,000)	$ (395,968,000)		$ (396,000,000)	(374,159,000)		(319,705,000)
Cash And Cash Equivalents,Short Term Investments And Common Stock Proceeds Receivable				112,000,000			112,000,000			153,300,000
Deferred Revenue, Revenue Recognized				66,100,000				95,400,000		79,200,000
Short-term investments		$ 103,224,000		103,200,000	$ 103,224,000		103,200,000	137,512,000		144,883,000		$ 137,500,000
Unbilled receivables								$ 10,000,000		$ 7,600,000
Common stock subject to repurchase or forfeiture \| shares		0	0		0	0		0		0	0
Changes in unrecognized tax position								An uncertain income tax position will not be recognized if it has less than a 50% likelihood of being sustained.
Number of operating segments \| Segment								1		1
Net cash provided by (used in) operating activities					$ 41,182,000	$ 33,242,000		$ 48,746,000		$ 31,964,000	$ (34,258,000)
Research and Development
Targeted or Tracking Stock, Stock [Line Items]
Severance benefits, and related costs				1,800,000
General and Administrative Expense Member
Targeted or Tracking Stock, Stock [Line Items]
Severance benefits, and related costs				$ 600,000
Pass Through Services [Member]
Targeted or Tracking Stock, Stock [Line Items]
Percentage of reimbursement of pass through costs as revenue				100.00%
US License
Targeted or Tracking Stock, Stock [Line Items]
Deferred Revenue, Revenue Recognized				$ 64,500,000				64,500,000
Development Services Performance Obligations
Targeted or Tracking Stock, Stock [Line Items]
Deferred Revenue, Revenue Recognized				1,600,000				$ 30,900,000		$ 14,700,000
Minimum
Targeted or Tracking Stock, Stock [Line Items]
Property and equipment, estimated useful life								3 years
Maximum
Targeted or Tracking Stock, Stock [Line Items]
Property and equipment, estimated useful life								7 years
Infinity Pharmaceuticals Inc [Member]
Targeted or Tracking Stock, Stock [Line Items]
Reduction of workforce	13.00%
Unrecognized tax benefits				0			0		$ 0
Accumulated deficit		$ (866,997,000)		(855,952,000)	(866,997,000)		$ (855,952,000)		(811,583,000)
Number of operating segments		1					1
Cash, cash equivalents, and available-for-sale securities		$ 25,700,000		$ 38,300,000	$ 25,700,000		$ 38,300,000
Net cash provided by (used in) operating activities		$ 12,576,000	$ 13,535,000				$ 42,431,000		$ 40,618,000
Number of major financial institutions \| institution							2
Number of issuers of investments \| issuer							1
Number of awards with market conditions \| award							0
Reclassifications out of accumulated other comprehensive income (loss)							$ 0

Net Loss Per Share (Tables)

9 Months Ended

12 Months Ended

Mar. 31, 2023

Jun. 30, 2022

Earnings Per Share [Abstract]

Schedule of Income (Loss) Per Share, Basic and Diluted

The following table presents the calculation of net loss used to calculate basic loss and diluted loss per share (in thousands):


	Three Months Ended March 31,						Nine Months Ended March 31,
	2023			2022			2023			2022
Net loss – basic	$	(15,438	)	$	(8,725	)	$	(21,809	)	$	(38,391	)
Change in fair value of warrant liability		—			—			—			(8,046	)

Net loss – diluted	$	(15,438	)	$	(8,725	)	$	(21,809	)	$	(46,437	)

The following table presents the calculation of net loss used to calculate basic and diluted loss per share for the periods presented (in thousands):


	Years Ended June 30,
	2022			2021			2020
Net loss—basic	$	(54,454	)	$	(41,314	)	$	(47,173	)
Change in fair value of warrant liability		(8,046	)		(27,394	)		—

Net loss—diluted	$	(62,500	)	$	(68,708	)	$	(47,173	)

Calculation of Weighted Average Shares Used to Calculate Basic and Diluted Income (Loss) Earnings Per Share

Share used in calculating net loss per share was determined as follows (in thousands):


	Three Months Ended March 31,				Nine Months Ended March 31,
	2023		2022		2023		2022
Weighted average shares used in calculating basic net loss per share		6,663		6,653		6,663		6,080
Effect of potentially dilutive common shares from equity awards and liability-classified warrants		—		—		—		44

Weighted average shares used in calculating diluted net loss per share		6,663		6,653		6,663		6,124

Shares used in calculating net loss per share for the periods presented was determined as follows (in thousands):


	Years Ended June 30,
	2022		2021		2020
Weighted average shares used in calculating basic net loss per share		6,224		5,626		4,554
Effect of potentially dilutive common shares from equity awards and liability-classified warrants		33		98		—

Weighted average shares used in calculating diluted net loss per share		6,257		5,724		4,554

Antidilutive Securities

The following table presents weighted average potentially dilutive shares that have been excluded from the calculation of net loss per share because of their anti-dilutive effect (in thousands):


	Three Months Ended March 31,				Nine Months Ended March 31,
	2023		2022		2023		2022
Stock options		1,258		1,020		1,340		1,029
Warrants		905		11		837		12
Restricted stock units		—		803		—		268

Total anti-dilutive shares		2,163		1,834		2,177		1,309

The following potentially dilutive shares have been excluded from the calculation of net loss per share for the periods presented because of their anti-dilutive effect (in thousands):


	Years Ended June 30,
	2022		2021		2020
Stock options		1,024		794		552
Warrants		402		201		803
Restricted stock units		11		21		—

Total anti-dilutive shares		1,437		1,016		1,355

Income Taxes (Tables)

12 Months Ended

Dec. 31, 2022

Jun. 30, 2022

Pre-Tax loss Information

Pre-tax

loss consists of the following jurisdictions (in thousands):


	Years Ended June 30,
	2022			2021			2020
Domestic	$	(54,454	)	$	(41,306	)	$	(47,172	)
Foreign		—			—			—

Pre-tax loss	$	(54,454	)	$	(41,306	)	$	(47,172	)

Reconciliation of Income Taxes Computed at U.S Federal Statutory Tax Rates to Income Tax Expense

The reconciliation of income tax computed at the U.S. federal statutory tax rates to income tax expense is as follows (in thousands):


	Years Ended June 30,
	2022						2021						2020
	$			%			$			%			$			%
Tax benefit at U.S. statutory rates	$	11,435			21	%	$	8,674			21	%	$	9,906			21	%
State tax		191			0	%		(99	)		0	%		9			0	%
Warrant liability costs		4,358			8	%		3,806			9	%		(4,803	)		(10	)%
Equity compensation		(71	)		0	%		(6	)		0	%		(2	)		0	%
Increase in valuation allowance		(15,473	)		(28	)%		(10,536	)		(26	)%		(4,473	)		(10	)%
Other		(440	)		(1	)%		(1,847	)		(4	)%		(638	)		(1	)%

	$	0			0	%	$	(8	)		0	%	$	(1	)		0	%

Deferred Tax Liabilities and Assets

Deferred tax liabilities and assets are comprised of the following (in thousands):


	June 30,
	2022			2021
Deferred tax assets (liabilities):
Deferred revenue	$	20,362		$	16,637
Fixed and intangible assets		13,283			15,924
Share-based payments		4,869			4,182
Tax losses carried forward		29,581			16,104
Compensation accruals		927			727
Consultant and other accruals		25			22
Right-of-use assets		(1,932	)		(1,633	)
Lease liabilities		2,057			1,742
Charitable contributions		7			1
Total deferred tax assets (liabilities)		69,179			53,706

Valuation allowance for deferred tax assets		(69,179	)		(53,706	)

Net deferred tax assets and liabilities	$	—		$	—

Reconciliation of Income Taxes Computed at U.S Federal Statutory Tax Rates to Income Tax Expense

Our income tax expense for the years ended December 31, 2022 and 2021 differed from the expected U.S. federal statutory income tax expense as set forth below:


	Years Ended December 31,
	2022			2021
	(in thousands)
Expected federal tax benefit	$	(9,317	)	$	(9,505	)
Permanent differences		215			191
State taxes, net of the deferred federal benefit		(1,986	)		(3,024	)
Tax credit carryforwards		(1,533	)		(1,416	)
Adjustments to deferred tax assets and deferred tax liabilities		560			226
Other		15			(93	)
Change in valuation allowance		12,046			13,621

Income tax expense (benefit)	$	—		$	—

Deferred Tax Liabilities and Assets

The significant components of our deferred tax assets and liabilities are as follows:


	Years Ended December 31,
	2022			2021
	(in thousands)
Deferred tax assets (liabilities):
Net operating loss carryforwards	$	170,880		$	164,969
Tax credit carryforwards		45,270			44,302
Intangible assets		13,212			15,151
Capitalized research and development costs		8,104			—
Accrued expenses		655			1,255
Stock-based compensation		5,183			5,109
Sale of future royalties		13,212			13,557
Other		(105	)		22
Valuation allowance		(256,411	)		(244,365	)

Net deferred tax assets (liabilities)	$	—		$	—

Schedule of Total Operating Costs (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended		12 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Mar. 31, 2023	Mar. 31, 2022	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2020
Leases [Abstract]
Operating lease cost	$ 609	$ 377	$ 1,826	$ 1,130	$ 1,583	$ 1,507	$ 692
Operating cash flows from operating leases	$ 567	$ 380	$ 1,700	$ 1,139

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) $ in Thousands	Total	Infinity Pharmaceuticals Inc [Member]	Common Shares	Common Shares Infinity Pharmaceuticals Inc [Member]	Additional paid in capital	Additional paid in capital Infinity Pharmaceuticals Inc [Member]	Accumulated Deficit	Accumulated Deficit Infinity Pharmaceuticals Inc [Member]	Accumulated Other Comprehensive (Loss) Income [Member] Infinity Pharmaceuticals Inc [Member]
Beginning Balance at Jun. 30, 2019	$ 47,930		$ 3,677		$ 279,148		$ (231,218)
Net income (loss)	(47,173)						(47,173)
Share-based compensation expense	6,801				6,801
Exercise of stock options	272		8		272
Issuance of common stock related to public offering, net of issuance costs	69,231		1,891		69,231
Ending Balance at Jun. 30, 2020	77,061		5,576		355,452		(278,391)
Net income (loss)	(41,314)						(41,314)
Exercise of warrants	6		0		6
Share-based compensation expense	10,245				10,245
Exercise of stock options	332		7		332
Issuance of common stock related to public offering, net of issuance costs	3,136		48		3,136
Ending Balance at Jun. 30, 2021	$ 49,466		5,631		369,171		(319,705)
Ending Balance, Shares at Jun. 30, 2021	5,631,000
Beginning Balance at Dec. 31, 2020		$ (22,989)		$ 64		$ 743,269		$ (766,321)	$ (1)
Beginning Balance, Shares at Dec. 31, 2020				64,320,244
Net income (loss)		(45,262)						(45,262)
Exercise of stock options		860		$ 1		859
Exercise of stock options, Shares				531,864
Stock-based compensation expense		2,695				2,695
Issuance of common stock related to public offering, net of issuance costs (in shares)				24,150,000
Issuance of common stock related to public offering, net of issuance costs		85,838		$ 24		85,814
Issuance of common stock related to sales facility, net of issuance costs (in shares)				89,520
Issuance of common stock related to sales facility, net of issuance costs		336		$ 0		336
Issuance of common stock, net (in shares)				63,683
Issuance of common stock, net		92		$ 0		92
Unrealized gain on marketable securities		1							1
Ending Balance at Dec. 31, 2021	$ 73,334	$ 21,571	6,645	$ 89	422,705	833,065	(349,371)	(811,583)	0
Ending Balance, Shares at Dec. 31, 2021		89,155,311		89,155,311
Beginning Balance at Jun. 30, 2021	$ 49,466		5,631		369,171		(319,705)
Beginning Balance, Shares at Jun. 30, 2021	5,631,000
Net income (loss)	$ (17,510)						(17,510)
Issuance of common stock for vested restricted stock units	(194)		3		(194)
Share-based compensation expense	2,539				2,539
Ending Balance at Sep. 30, 2021	34,301		5,634		371,516		(337,215)
Beginning Balance at Jun. 30, 2021	$ 49,466		5,631		369,171		(319,705)
Beginning Balance, Shares at Jun. 30, 2021	5,631,000
Net income (loss)	$ (38,391)
Ending Balance at Mar. 31, 2022	67,806	$ 9,982	6,658	$ 89	425,902	833,932	(358,096)	(824,019)	(20)
Ending Balance, Shares at Mar. 31, 2022				89,155,311
Beginning Balance at Jun. 30, 2021	$ 49,466		5,631		369,171		(319,705)
Beginning Balance, Shares at Jun. 30, 2021	5,631,000
Net income (loss)	$ (54,454)						(54,454)
Issuance of common stock for vested restricted stock units	(194)		3		(194)
Share-based compensation expense	8,350				8,350
Exercise of stock options	$ 572		18		572
Exercise of stock options, Shares	17,428,000
Issuance of common stock related to public offering, net of issuance costs	$ 48,673		1,006		48,673
Ending Balance at Jun. 30, 2022	$ 52,413		6,658		426,572		(374,159)
Ending Balance, Shares at Jun. 30, 2022	6,658,000
Beginning Balance at Sep. 30, 2021	$ 34,301		5,634		371,516		(337,215)
Net income (loss)	(12,156)						(12,156)
Share-based compensation expense	2,324				2,324
Exercise of stock options	212		5		212
Issuance of common stock related to public offering, net of issuance costs	48,653		1,006		48,653
Ending Balance at Dec. 31, 2021	73,334	$ 21,571	$ 6,645	$ 89	422,705	833,065	(349,371)	(811,583)	0
Ending Balance, Shares at Dec. 31, 2021		89,155,311		89,155,311
Net income (loss)	(8,725)	$ (12,436)					(8,725)	(12,436)
Share-based compensation expense	2,837	867			2,837	867
Exercise of stock options	360				360
Exercise of stock options, Shares			13,000
Unrealized gain on marketable securities		(20)							(20)
Ending Balance at Mar. 31, 2022	67,806	9,982	$ 6,658	$ 89	425,902	833,932	(358,096)	(824,019)	(20)
Ending Balance, Shares at Mar. 31, 2022				89,155,311
Beginning Balance at Dec. 31, 2021	73,334	$ 21,571	6,645	$ 89	422,705	833,065	(349,371)	(811,583)	0
Beginning Balance, Shares at Dec. 31, 2021		89,155,311		89,155,311
Net income (loss)		$ (44,369)						(44,369)
Exercise of stock options		$ 15		$ 0		15
Exercise of stock options, Shares		17,708		17,708
Stock-based compensation expense		$ 3,621				3,621
Issuance of common stock, net (in shares)				238,452
Issuance of common stock, net		111		$ 0		111
Unrealized gain on marketable securities		0
Ending Balance at Dec. 31, 2022	48,374	$ (19,051)	6,663	$ 89	428,904	836,812	(380,530)	(855,952)	0
Ending Balance, Shares at Dec. 31, 2022		89,411,471		89,411,471
Beginning Balance at Jun. 30, 2022	$ 52,413		6,658		426,572		(374,159)
Beginning Balance, Shares at Jun. 30, 2022	6,658,000
Net income (loss)	$ (16,624)						(16,624)
Issuance of common stock for vested restricted stock units	(40)		5		(40)
Share-based compensation expense	1,559				1,559
Ending Balance at Sep. 30, 2022	37,308		6,663		428,091		(390,783)
Beginning Balance at Jun. 30, 2022	$ 52,413		6,658		426,572		(374,159)
Beginning Balance, Shares at Jun. 30, 2022	6,658,000
Net income (loss)	$ (21,809)
Ending Balance at Mar. 31, 2023	$ 34,354	$ (28,322)	6,663	$ 89	430,322	838,586	(395,968)	(866,997)	0
Ending Balance, Shares at Mar. 31, 2023	6,663,000	89,422,138		89,422,138
Beginning Balance at Sep. 30, 2022	$ 37,308		6,663		428,091		(390,783)
Net income (loss)	10,253						10,253
Share-based compensation expense	813				813
Ending Balance at Dec. 31, 2022	48,374	$ (19,051)	6,663	$ 89	428,904	836,812	(380,530)	(855,952)	0
Ending Balance, Shares at Dec. 31, 2022		89,411,471		89,411,471
Net income (loss)	(15,438)	$ (11,045)					(15,438)	(11,045)
Share-based compensation expense		1,774				1,774
Stock-based compensation expense	918				918
Issuance of common stock, net (in shares)				10,667,000
Unrealized gain on marketable securities		0
Issuance of warrants	500				500
Ending Balance at Mar. 31, 2023	$ 34,354	$ (28,322)	$ 6,663	$ 89	$ 430,322	$ 838,586	$ (395,968)	$ (866,997)	$ 0
Ending Balance, Shares at Mar. 31, 2023	6,663,000	89,422,138		89,422,138

Share-based Compensation - Summary Of Fair Value of Stock Options Weighted-Average Assumptions Used (Detail) - $ / shares	3 Months Ended		9 Months Ended		12 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Mar. 31, 2023	Mar. 31, 2022	Dec. 31, 2022	Jun. 30, 2022	Dec. 31, 2021	Jun. 30, 2021	Jun. 30, 2020
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Risk-free interest rate			2.90%	1.20%		1.30%		0.50%	1.70%
Expected life (years)		6 years	6 years	6 years		6 years		6 years	6 years
Expected volatility			84.10%	68.80%		69.60%		80.10%	74.10%
Dividend yield			0.00%	0.00%		0.00%		0.00%	0.00%
Weighted-average grant date fair value			$ 7.71	$ 33		$ 31.4		$ 46	$ 32.8
Infinity Pharmaceuticals Inc [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Risk-free interest rate	0.00%	1.60%			2.10%		0.90%
Expected life (years)					5 years 10 months 24 days		5 years 10 months 24 days
Expected volatility	0.00%	106.20%			105.00%		106.30%
Dividend yield	0.00%	0.00%
Weighted-average grant date fair value		$ 1.26			$ 1.1		$ 2.69

Accrued Expenses and Other Current Liabilities

3 Months Ended

12 Months Ended

Mar. 31, 2023

Dec. 31, 2022

Jun. 30, 2022

Accrued Expenses and Other Current Liabilities

Note 7. Accrued Liabilities

Accrued liabilities consisted of the following, in thousands:


	June 30,
	2022		2021
Accrued pre-clinical and clinical trial expenses	$	5,264	$	4,004
Accrued compensation and benefits		4,346		3,513
Accrued legal and professional services expenses		1,036		813
Other		174		72

Total accrued liabilities	$	10,820	$	8,402

Accrued Expenses and Other Current Liabilities

9. Accrued Expenses and Other Current Liabilities

Accrued expenses and other current liabilities consisted of the following:


	March 31, 2023		December 31, 2022
	(in thousands)
Accrued clinical	$	3,881	$	4,290
Accrued compensation and benefits		1,204		605
Accrued restructuring costs		841		—
Accrued development		407		335
Accrued consulting		321		742
Accrued professional services		288		785
Liability related to sale of future royalties, net, current portion		1,307		1,218
Operating lease liability, current portion		613		593
Other		492		655

Total accrued expenses and other current liabilities	$	9,354	$	9,223

8. Accrued Expenses and Other Current Liabilities

Accrued expenses and other current liabilities consisted of the following:


	December 31,
	2022		2021
	(in thousands)
Accrued clinical	$	4,290	$	4,998
Accrued professional services		785		88
Accrued consulting		742		475
Accrued compensation and benefits		605		2,835
Accrued development		335		755
Liability related to sale of future royalties, net, current portion		1,218		897
Operating lease liability, current portion		593		519
Other		655		413

Total accrued expenses	$	9,223	$	10,980

The Company and Summary of Significant Accounting Policies (Policies)

3 Months Ended

9 Months Ended

12 Months Ended

Mar. 31, 2023

Dec. 31, 2022

Jun. 30, 2022

Clinical Development Programs

•

Voruciclib, an oral cyclin-dependent kinase (“CDK”) inhibitor;

•

ME-344,

an intravenous small molecule targeting the oxidative phosphorylation pathway; and

•

Zandelisib, an oral phosphatidylinositol

3-kinase

delta (“PI3K

”) inhibitor.

The results of

pre-clinical

ME-344

and to develop new compounds we might license or

acquire

collaborators.

Reduction in Force and Current Events

Clinical Development Programs

•

zandelisib (f/k/a

ME-401),

an oral phosphatidylinositol

3-kinase

(“PI3K”) delta inhibitor;

•

voruciclib, an oral cyclin-dependent kinase (“CDK”) 9 inhibitor; and

•

ME-344,

a mitochondrial inhibitor targeting the oxidative phosphorylation (“OXPHOS”) complex.

Reduction in Force and Current Events

In November 2022, we and Kyowa Kirin Co., Ltd. (“Kyowa Kirin”) met with the U.S. Food and Drug Administration (“FDA”) in a

follow-up

non-Hodgkin

lymphoma outside of Japan.

B-cell

non-Hodgkin

lymphomas, and will explore submitting the MIRAGE and TIDAL trials for marketing authorization in Japan. MIRAGE is a Phase 2 trial, similar in design to the global Phase 2,

single-arm,

In December 2022, we announced a plan to streamline our organization towards the continued clinical development of voruciclib and

ME-344.

As a result, we initiated a staggered workforce reduction, initially affecting 28 employees in December 2022 (representing approximately

% of our workforce

) and an additional 14 employees in April 2023. In connection with the reduction in force, we incurred termination costs, which include severance, benefits, and related costs of approximate

ly $

2.4

million, of which $

1.8

million was research and development expense and $

0.6

million was general and administrative expense.

Liquidity

We have accumulated losses of $

396.0

million since inception and expect to incur operating losses and generate negative cash flows from operations for the foreseeable future. As of

March

31, 202

, we had $

112.0

million

product

candidates will depend on a variety of factors, including uncertainties associated with the results of our clinical trials.

Liquidity

Basis of Presentation

10-Q

and Article 10 of Regulation

S-X.

10-K

filed with the Securities and Exchange Commission on September 8, 2022 (“2022 Annual Report”). Interim results are not necessarily indicative of results for a full year.

Use of Estimates

Research and Development Costs

•

Level 1 – Observable inputs such as quoted prices in active markets for identical assets or liabilities.

•

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.

Fair Value Measurements

•

Level 1 — Observable inputs such as quoted prices in active markets for identical assets or liabilities.

•

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.

Revenue Recognition

Revenues from Customers

In accordance with Accounting Standards Codification (“ASC”) Topic 606,

Revenue from Contracts with Customers

(“Topic 606”),

Payments received under commercial arrangements, such as licensing technology rights, may include

non-refundable

re-evaluate

the probability of achievement of development milestones and any related constraint and, as necessary, we adjust our estimate of the overall transaction price.

50-50

In the case of a license that is a distinct performance obligation, we recognize revenue allocated to the license from

non-refundable,

up-front

generally use the

cost-to-cost

measure of progress because it best depicts the transfer of control to the customer which occurs as we incur costs. Under the

cost-to-cost

In connection with our License, Development and Commercialization Agreement (the “Kyowa Kirin Commercialization Agreement”) with Kyowa Kirin, we perform development services related to our

50-50

100

We recognized revenue associated with the Kyowa Kirin Commercialization

Agreement

for the periods presented (in thousands):


	Three Months Ended March 31,				Nine Months Ended March 31,
	2023		2022		2023		2022

Revenue	$	5,894	$	9,694	$	47,359	$	29,283

Timing of Revenue Recognition:
Services performed over time	$	5,598	$	9,694	$	46,430	$	26,970
Pass through services at a point in time		296		—		929		2,313

	$	5,894	$	9,694	$	47,359	$	29,283

Contract Balances

The following table presents changes in accounts receivable, unbilled receivables and contract liabilities accounted for under Topic 606 for the periods presented (in thousands):


	Nine Months Ended March 31,
	202 3			202 2
Accounts receivable
Accounts receivable, beginning of period	$	—		$	—
Amounts billed		23,507			45,927
Payments received		(23,507	)		(45,927	)

Accounts receivable, end of period	$	—		$	—

Unbilled receivables
Unbilled receivables, beginning of period	$	10,044		$	7,582
Billable amounts		18,043			46,791
Amounts billed		(23,507	)		(45,927	)

Unbilled receivables, end of period	$	4,580		$	8,446

Contract liabilities
Contract liabilities, beginning of period	$	30,900		$	14,677
Payments received		—			20,000
Revenue recognized		(4,145	)		(2,513	)
Revenue recognized from change in estimate for performance obligations that are being closed		(16,565	)		—
Revenue recognized for performance obligations that will no longer commence		(8,607	)		—

Contract liabilities, end of period	$	1,583		$	32,164

As of March 31, 2023 and June 30, 2022, we had

66.1

million and $

95.4

million, respectively, of deferred revenue associated with the

Kyowa Kirin

Commercialization Agreement, of which $

64.5

million relates to the U.S. license which is a unit of account under the scope of ASC Topic 808,

Collaborative Arrangements

(“Topic

808”) and is not a performance obligation under Topic 606. The remaining balance of deferred

revenue as of March 31, 2023 and June 30, 2022

of $

1.6

million and $

30.9

million,

non-refundable

payments for performance obligations that have not commenced and will no longer be initiated.

Revenues from Collaborators

Revenue Recognition

Revenue from Customers

In accordance with ASC Topic 606,

Revenue from Contracts with Customers

Payments received under commercial arrangements, such as licensing technology rights, may include

non-refundable

fees at the inception of the arrangements, milestone payments for specific achievements designated in the agreements, and royalties on the sale of products. At the inception of arrangements that include milestone payments, we use judgment to evaluate whether the milestones are probable of being achieved, and we estimate the amount to include in the transaction price using the most likely method. If it is probable that a significant revenue reversal will not occur, the estimated amount is included in the transaction price. Milestone payments that are not within our or the licensee’s control, such as regulatory approvals, are not included in the transaction price until those approvals are received. At the end of each reporting period, we

re-evaluate

the probability of achievement of development milestones and any related constraint and, as necessary, we adjust our estimate of the overall transaction price.

50-50

In the case of a license that is a distinct performance obligation, we recognize revenue allocated to the license from

non-refundable,

up-front

fees at the point in time when the license is transferred to the licensee and

cost-to-cost

measure of progress because it best depicts the transfer of control to the customer which occurs as we incur costs. Under the

cost-to-cost

We recognized revenue associated with the following license agreements for the periods presented (in thousands):


	Years Ended June 30,
	2022		2021		2020
License Agreement:
KKC Commercialization Agreement	$	40,697	$	34,356	$	26,386
Helsinn License Agreement		—		440		1,370

	$	40,697	$	34,796	$	27,756

Timing of Revenue Recognition:
Development services performed over time	$	37,304	$	31,302	$	6,768
Pass through services at a point in time		3,393		3,494		—
License transferred at a point in time		—		—		20,988

	$	40,697	$	34,796	$	27,756

Contract Balances


	Years Ended June 30,
	2022			2021
Accounts receivable
Accounts receivable, beginning of year	$	—		$	83
Amounts billed		54,611			25,682
Payments received		(54,611	)		(25,765	)

Accounts receivable, end of year	$	—		$	—

Unbilled receivables
Unbilled receivables, beginning of year	$	7,582		$	2,858
Billable amounts		56,816			30,406
Amounts billed		(54,354	)		(25,682	)

Unbilled receivables, end of year	$	10,044		$	7,582

Contract liabilities
Contract liabilities, beginning of year	$	14,677		$	19,108
Revenue recognized		(3,777	)		(4,798	)
Payments received		20,000			367

Contract liabilities, end of year	$	30,900		$	14,677

Collaborative Arrangements

Revenue from Collaborators

in-process

research and development for early-stage products or products that are not commercially viable and ready for use, or have no alternative future use, are charged to expense in the period incurred.

Research and Development

in-process

research and development for early-stage products or products that are not commercially viable and ready for use, or have no alternative future use, are charged to expense in the period incurred.

Leases

We account for our leases under ASC Topic 842,

Leases

(“Topic 842”). Leases which are identified within the scope of Topic 842 and which have a term greater than one year are recognized on our Condensed Consolidated Balance Sheets as

right-of-use

non-lease

components for our real estate leases. Our

non-lease

components are primarily related to property maintenance, which varies based on future outcomes, and thus is recognized in operating lease expense when incurred.

Leases

Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 842,

Leases

(“Topic 842”) establishes a

right-of-use

(“ROU”) model that requires a lessee to record a ROU asset and

Rent expense for operating leases is recognized on a straight-line basis over the lease term based on the total lease payments. We have elected the practical expedient to not separate lease and

non-lease

components for our real estate leases. Our

non-lease

components are primarily related to property maintenance, which varies based on future outcomes, and thus is recognized in rent expense when incurred.

Share-based Compensation

Share-Based Compensation

Compensation—Stock Compensation

Share-Based Compensation

718-10-S99.

Recent Accounting Pronouncements

There have been

material

changes in our unrecognized tax benefits since June 30, 2022, and, as such, the disclosures included in our 2022 Annual Report continue to be relevant for the nine months ended March 31, 2023.

Income Taxes

Our income tax expense consists of current and deferred income tax expense or benefit. Current income tax expense or benefit is the amount of income taxes expected to be payable or refundable for the current year. A deferred income tax asset or liability is recognized for the future tax consequences attributable to tax credits and loss carryforwards and to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. As of June 30, 2022 and 2021, we have established a valuation allowance to fully reserve our net deferred tax assets. Tax rate changes are reflected in income during the period such changes are enacted. Changes in our ownership may limit the amount of net operating loss carryforwards that can be utilized in the future to offset taxable income.

more-likely-than-not

Recent Accounting Pronouncement

In June 2016, the Financial Accounting Standards Board issued Accounting Standards Update

2016-13,

Financial Instruments–Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments

(“ASU

2016-13”),

as amended. The amendments in ASU

2016-13

will have on our financial statements and related disclosures.

Recent Account Pronouncement

In June 2016, the FASB issued ASU

2016-13,

as amended. The amendments in ASU

2016-13

will have on our financial statements and related disclosures.

Reclassification

Reclassifications

Cash and Cash Equivalents

Short-Term Investments

Interest and Dividend Income

Cost of Revenue

Interest on cash balances is recognized when earned. Dividend income is recognized when the right to receive the payment is established.

Net Loss Per Share

The following table presents the calculation of net loss used to calculate basic and diluted loss per share for the periods presented (in thousands):


	Years Ended June 30,
	2022			2021			2020
Net loss—basic	$	(54,454	)	$	(41,314	)	$	(47,173	)
Change in fair value of warrant liability		(8,046	)		(27,394	)		—

Net loss—diluted	$	(62,500	)	$	(68,708	)	$	(47,173	)

Shares used in calculating net loss per share for the periods presented was determined as follows (in thousands):


	Years Ended June 30,
	2022		2021		2020
Weighted average shares used in calculating basic net loss per share		6,224		5,626		4,554
Effect of potentially dilutive common shares from equity awards and liability-classified warrants		33		98		—

Weighted average shares used in calculating diluted net loss per share		6,257		5,724		4,554

The following potentially dilutive shares have been excluded from the calculation of net loss per share for the periods presented because of their anti-dilutive effect (in thousands):


	Years Ended June 30,
	2022		2021		2020
Stock options		1,024		794		552
Warrants		402		201		803
Restricted stock units		11		21		—

Total anti-dilutive shares		1,437		1,016		1,355

Research and Development Costs

Basis of Presentation

These consolidated financial statements include the accounts of Infinity and its wholly-owned subsidiaries. We have eliminated all significant intercompany accounts and transactions in consolidation.

Research and Development Expense

Leases

right-of-use

asset and a corresponding lease liability related to our leases. Rights and obligations related to our leases are included within operating lease

right-of-use

assets, accrued expenses and other current liabilities, and operating lease liability, less current portion in the Consolidated Balance Sheets.

We recognize a

right-of-use

Recent Accounting Pronouncements

New Accounting Pronouncements

In June 2016, the Financial Accounting Standards Board, or FASB, issued Accounting Standard Update, or ASU, No.

2016-13,

Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Statements

, or ASU

No. 2016-13,

available-for-sale

debt securities with expected credit losses, ASU

No. 2016-13

requires allowances to be recorded instead of reducing the amortized cost of the investment. In November 2019, the FASB issued ASU

2019-10,

Financial Instruments—Credit Losses (Topic 326), Derivatives and Hedging (Topic 815), and Leases (Topic 842): Effective Dates

, whereby the effective date of ASU

No. 2016-13

In August 2020, the FASB issued ASU No.

2020-06,

Debt—Debt with Conversion and Other Options (Subtopic

470-20)

and Derivatives and Hedging—Contracts in Entity’s Own Equity (Subtopic

815-40):

Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity

, or ASU

No. 2020-06,

which simplifies the guidance on an issuer’s accounting for convertible instruments and contracts in its own equity. The provisions of ASU

No. 2020-06

on our consolidated financial statements and related disclosures.

New Accounting Pronouncements

In June 2016, the Financial Accounting Standards Board, or FASB, issued Accounting Standard Update, or ASU,

No. 2016-13,

Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Statements

, or ASU

No. 2016-13,

available-for-sale

2019-10,

Financial Instruments—Credit Losses (Topic 326), Derivatives and Hedging (Topic 815), and Leases (Topic 842): Effective Dates

In August 2020, the FASB issued ASU

No. 2020-06,

Debt—Debt with Conversion and Other Options (Subtopic

470-20)

and Derivatives and Hedging—Contracts in Entity’s Own Equity (Subtopic

815-40):

Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity

, or ASU

No. 2020-06,

which simplifies the guidance on an issuer’s accounting for convertible instruments and contracts in its own equity. The provisions of ASU

No. 2020-06

on our consolidated financial statements and related disclosures.

In November 2021, the FASB issued ASU

No. 2021-10,

Government Assistance (Topic 832): Disclosures by Business Entities about Government Assistance

, or ASU

No. 2021-10,

Cash Equivalents and Available-For-Sale Securities


Computer equipment and software		3 to 5 years
Leasehold improvements		Shorter of lease term or useful life of asset

Furniture and fixtures		7 to 10 years

Net Loss Per Share

Basic and Diluted Net Loss per Common Share

in-the-money.

This results in the “assumed” buyback of additional shares, thereby reducing the dilutive impact of stock options. The

two-class


	At March 31,
	2023		2022
Stock options		14,199,758		14,538,334
Non-vested restricted stock units		2,929,149		50,000

Basic and Diluted Net Loss per Common Share

in-the-money.

This results in the “assumed” buyback of additional shares, thereby reducing the dilutive impact of stock options. The

two-class


	At December 31,
	2022		2021
Stock options		14,663,697		12,689,439
Non-vested restricted stock		2,939,816		50,000

Segment Information

Cash Equivalents and

Available-For-Sale

Securities

From time to time we invest our cash in short-term marketable securities. We determine the appropriate classification of marketable securities at the time of purchase and

re-evaluate

such designation at each balance sheet date, if applicable. Typically, the marketable securities in which we invest have been classified as

“available-for-sale.” We

carry

available-for-sale

securities at fair value. Unrealized gains and losses on

available-for-sale

available-for-sale.

We did not own any such securities as of December 31, 2022 or 2021.

We adjust the cost of

available-for-sale

available-for-sale.

We conduct periodic reviews to identify and evaluate each

available-for-sale

debt securities that are determined to be temporary, and not related to credit loss, are recorded, net of tax, in accumulated other comprehensive loss.

Liquidity and Going Concern

We expect to continue to spend significant resources to fund the development and potential commercialization of eganelisib, also known as

IPI-549,

an orally administered immuno-oncology product candidate that selectively inhibits the enzyme

phosphoinositide-3-kinase

gamma, or PI3K-gamma, and to incur significant operating losses for the foreseeable future.

•

Pursue another strategic transaction

•

Wind down the company

Concentration of Credit Risk

available-for-sale

securities.

Impairment of Long-Lived Assets