0000950170-23-039830 | 10-Q | XBRL Viewer

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Stockholders' Equity - Additional Information (Details) - USD ($) $ / shares in Units, $ in Millions			6 Months Ended
	May 25, 2023	Apr. 13, 2022	Jun. 30, 2023
Class of Stock [Line Items]
Number of warrants exercised			0
Number of warrants expired			0
Private Placement
Class of Stock [Line Items]
Gross proceeds from private placement		$ 100.5
Net proceeds from private placement		96.3
Estimated offering costs		$ 4.2
Shares issued and sold, public offering price		$ 4.22
Warrants purchase price		$ 4.219
Private Placement \| Purchase Agreement
Class of Stock [Line Items]
Aggregate gross proceeds from issuance of warrants	$ 50.0
Net proceeds after deducting issuance costs	$ 46.7
Conversion of stock, description			Each Share (or Pre-Funded Warrant to purchase one share) was issued with an accompanying Purchase Warrant to purchase one-half of one share, and the combined effective purchase price per Share (or Pre-Funded Warrant to purchase one share) and accompanying Purchase Warrant to purchase one-half of one share was $2.4925 (less the exercise price of the Pre-Funded Warrant, if applicable).
Warrants purchase price	$ 2.4925
Pre Funded Warrants
Class of Stock [Line Items]
Issuance of common stock			7,408,188
Warrants exercise price, per share			$ 0.001
Aggregate gross proceeds from issuance of warrants			$ 19.7
Pre Funded Warrants \| Private Placement
Class of Stock [Line Items]
Issuance of common stock		5,000,000
Warrants exercise price, per share		$ 0.001
Pre Funded Warrants \| Private Placement \| Purchase Agreement
Class of Stock [Line Items]
Warrants to purchase common shares	2,408,188
Warrants exercise price, per share	$ 0.001
Class of warrant or right, expiration description			Each Pre-Funded Warrant was exercisable immediately and will expire on May 31, 2028.
Common Stock \| Private Placement
Class of Stock [Line Items]
Issuance of common stock		18,815,159
Common Stock \| Private Placement \| Purchase Agreement
Class of Stock [Line Items]
Issuance of common stock	17,652,962
Purchase Warrants \| Private Placement \| Purchase Agreement
Class of Stock [Line Items]
Warrants to purchase common shares	10,030,575
Warrants exercise price, per share	$ 2.673
Class of warrant or right, expiration description			Each Purchase Warrant will be exercisable at any time on or after November 30, 2023 and will expire on November 30, 2028.

Income Taxes	6 Months Ended
Jun. 30, 2023
Income Tax Disclosure [Abstract]
Income Taxes	7. Income Taxes The Company records a provision or benefit for income taxes on pre-tax income or loss based on its estimated effective tax rate for the year. Given the Company’s uncertainty regarding future taxable income, the Company maintains a full valuation allowance on its deferred tax assets. The Company recorded an income tax expense of $12,000 for the three months ended June 30, 2023 and $26,000 for the six months ended June 30, 2023. No income tax expense was recorded as of the three and six months ended June 30, 2022.

Income Taxes

6 Months Ended

Jun. 30, 2023

Income Tax Disclosure [Abstract]

Income Taxes

7. Income Taxes

The Company records a provision or benefit for income taxes on pre-tax income or loss based on its estimated effective tax rate for the year. Given the Company’s uncertainty regarding future taxable income, the Company maintains a full valuation allowance on its deferred tax assets. The Company recorded an income tax expense of $12,000 for the three months ended June 30,

2023 and $26,000 for the six months ended June 30, 2023. No income tax expense was recorded as of the three and six months ended June 30, 2022.

- Definition

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

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 20
-Name Accounting Standards Codification
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-URI https://asc.fasb.org//1943274/2147480990/946-20-50-13

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 235
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Reference 3: http://www.xbrl.org/2003/role/disclosureRef
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Reference 4: http://www.xbrl.org/2003/role/disclosureRef
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+ Details

Condensed Consolidated Statements of Cash Flows (unaudited) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022
Cash flows from operating activities:
Net loss	$ (31,873)	$ (26,277)
Adjustments to reconcile net loss to net cash used in operating activities:
Stock-based compensation	2,964	1,951
Depreciation expense	261	566
Impairment of long-lived assets	1,592
Net amortization of premium on short-term investments	(1,352)
Changes in operating assets and liabilities:
Prepaid expenses and other current assets	1,135	788
Operating lease right-of-use assets	803	495
Other assets	(2,527)	(949)
Accounts payable	3,189	(1,639)
Accrued expenses and other current liabilities	(2,928)	1,207
Operating lease liabilities	(528)	(524)
Deferred revenue	(868)	4,007
Net cash used in operating activities	(30,132)	(20,375)
Cash flows from investing activities:
Purchases of property and equipment	(116)	(107)
Purchases of short-term investments	(29,930)
Maturity of short-term investments	34,800
Net cash provided by (used in) investing activities	4,754	(107)
Cash flows from financing activities:
Proceeds from sale of common stock and pre-funded warrants, net of issuance costs	50,000	100,495
Payment of deferred offering costs	(2,912)	(4,010)
Proceeds from exercise of stock options	101	8
Net cash provided by financing activities	47,189	96,493
Net increase in cash, cash equivalents and restricted cash	21,811	76,011
Cash, cash equivalents and restricted cash, beginning of period	33,942	46,076
Cash, cash equivalents and restricted cash, end of period	55,753	122,087
Supplemental disclosure of non-cash financing and investing activities:
Property and equipment purchases included in accounts payable	54	6
Other assets included in accounts payable and other current liabilities	505
Deferred offering costs included in accounts payable and accrued expense	$ 420	$ 236

Leases - Additional Information (Details) - USD ($)		1 Months Ended			3 Months Ended		6 Months Ended
Leases - Additional Information (Details) - USD ($)	May 31, 2021	Nov. 30, 2022	May 31, 2022	Nov. 30, 2017	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022	Apr. 30, 2021
Lessee Lease Description [Line Items]
Restricted cash					$ 1,089,000		$ 1,089,000		$ 1,392,000
Option to extend lease			one additional 5-year term
Operating lease cost					444,000	$ 264,000	888,000	$ 528,000
Research and Development
Lessee Lease Description [Line Items]
Operating lease cost					0	$ 1,800,000	$ 0	$ 2,500,000
Watertown Lease
Lessee Lease Description [Line Items]
Extended lease term		2024-04		2023-04
Lessee, Operating Lease, Existence of Option to Extend [true false]							true
Watertown Lease \| Clinical Supply Agreement
Lessee Lease Description [Line Items]
Operating lease period										5 years
Operating Lease, renewal term										1 year
Watertown Lease \| Office Equipment
Lessee Lease Description [Line Items]
Lease initiation date							Apr. 30, 2020
Lease expiration date							Jun. 30, 2024
Watertown Lease \| Letter of Credit
Lessee Lease Description [Line Items]
Secured debt obligations				$ 300,000
Waltham Lease
Lessee Lease Description [Line Items]
Debt instrument expiration date			Apr. 01, 2024
Waltham Lease \| Other assets
Lessee Lease Description [Line Items]
Prepaid rent					$ 3,400,000		$ 3,400,000
Waltham Lease \| Office and Laboratory
Lessee Lease Description [Line Items]
Initial base rent	$ 2,200,000
Operating lease period			10 years 2 months
Percentage of annual rent increment			3.00%
Waltham Lease \| Letter of Credit
Lessee Lease Description [Line Items]
Secured debt obligations			$ 1,100,000
Maximum \| Waltham Lease \| Office and Laboratory
Lessee Lease Description [Line Items]
Lease expiration date			Jul. 31, 2033

Stockholders' Equity - Summary of Warrants Outstanding and Exercisable (Details)	6 Months Ended
	Jun. 30, 2023 $ / shares shares
Class of Warrant or Right [Line Items]
Number of shares Underlying Warrants Outstanding	17,438,763
Number of shares Underlying Warrants Exercisable	7,408,188
Warrant One
Class of Warrant or Right [Line Items]
Issue Date	Apr. 13, 2022
Exercise Price \| $ / shares	$ 0.001
Expiration Date	Apr. 12, 2027
Number of shares Underlying Warrants Outstanding	5,000,000
Number of shares Underlying Warrants Exercisable	5,000,000
Warrant Two
Class of Warrant or Right [Line Items]
Issue Date	May 31, 2023
Exercise Price \| $ / shares	$ 0.001
Expiration Date	May 31, 2028
Number of shares Underlying Warrants Outstanding	2,408,188
Number of shares Underlying Warrants Exercisable	2,408,188
Warrant Three
Class of Warrant or Right [Line Items]
Issue Date	May 31, 2023
Exercise Price \| $ / shares	$ 2.673
Expiration Date	Nov. 30, 2028
Number of shares Underlying Warrants Outstanding	10,030,575

Stock-Based Compensation Expense - Schedule of Stock-Based Compensation Expense (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Stock-based compensation expense	$ 1,354	$ 1,107	$ 2,964	$ 1,951
Research and Development
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Stock-based compensation expense	287	209	571	436
General and Administrative
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Stock-based compensation expense	$ 1,067	$ 898	$ 2,393	$ 1,515

Commitments and Contingencies

6 Months Ended

Jun. 30, 2023

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

9. Commitments and Contingencies

On May 10, 2023, the Company filed a complaint in the Superior Court of the State of Delaware against a former contract manufacturer alleging breach of contract. The Company alleged in its complaint that its former contract manufacturer breached the Master Clinical Supply Agreement (“MCSA”) by misrepresenting their ability to produce LYR-210 in accordance with the Company’s specifications and with a robust quality system in place, and failed to return certain customer materials and equipment as required under the MCSA. The Company’s complaint seeks monetary damages and the return of equipment and materials that the Company owns. On June 1, 2023, the same contract manufacturer filed an answer and counterclaims to the Company’s May 10, 2023 complaint, alleging claims for breach of contract in excess of $7 million, as well as claims for breach of implied covenant of good faith and fair dealing, promissory estoppel, and declaratory judgment all relating to the parties’ relationship under the MCSA. On June 21, 2023, the Company filed a partial motion to dismiss the contract manufacturer’s claims for breach of the implied covenant of good faith and fair dealing and promissory estoppel.

Stock-Based Compensation Expense (Tables)

6 Months Ended

Jun. 30, 2023

Share-Based Payment Arrangement [Abstract]

Summary of Restricted Stock Unit Activity

A summary of the restricted stock unit activity under the Plans for the six months ended June 30, 2023 was as follows:


	Shares			Weighted- Average Grant Date Fair Value
Restricted stock units outstanding as of December 31, 2022		28,212		$	4.78
Granted		270,716		$	2.85
Vested		(7,041	)	$	4.78
Forfeited		(48,184	)	$	2.93
Restricted stock units outstanding as of June 30, 2023		243,703		$	3.00

Summary of Stock Option Activity Under Plans

A summary of the stock option activity under the Plans for the six months ended June 30, 2023 was as follows:


	Shares			Weighted- Average Exercise Price		Weighted- Average Remaining Contractual Life (in years)		Aggregate Intrinsic Value (in thousands)
Outstanding at December 31, 2022		4,311,333		$	7.07		8.2	$	378
Granted		1,976,180			2.85
Exercised		(57,377	)		1.75
Cancelled		(358,323	)		8.13
Outstanding at June 30, 2023		5,871,813		$	5.63		8.5	$	3,090

Schedule of Fair Value of Stock Option Estimated on Date of Grant Using Black-Scholes Option-Pricing Model in Case of Options Granted to Executive Officers

The fair value of each stock option granted to employees, directors and non-employees was estimated on the date of grant using the Black-Scholes option-pricing model in the case of the options granted to executive officers, with the following weighted-average assumptions for the three and six months ended June 30, 2023 and 2022:


	Three Months Ended June 30,						Six Months Ended June 30,
	2023			2022			2023			2022
Risk-free interest rate		3.8	%		3.2	%		3.7	%		2.5	%
Expected dividend yield		—	%		—	%		—	%		—	%
Expected term (in years)		6.1			2.1			6.0			3.3
Expected volatility		82.0	%		80.6	%		82.9	%		80.7	%

Schedule of Stock-Based Compensation Expense

Stock-based compensation expense included in the Company’s consolidated statements of operations and comprehensive loss was as follows (in thousands):


	Three Months Ended June 30,				Six Months Ended June 30,
	2023		2022		2023		2022
Research and development	$	287	$	209	$	571	$	436
General and administrative		1,067		898		2,393		1,515
Total	$	1,354	$	1,107	$	2,964	$	1,951

Stockholders' Equity

6 Months Ended

Jun. 30, 2023

Equity [Abstract]

Stockholders' Equity

4. Stockholders’ Equity

May 2023 Financing

On March 27, 2023, the Company notified Jefferies LLC (“Jefferies”) of the termination of the Open Market Sales Agreement, dated May 11, 2021, between the Company and Jefferies.

On May 25, 2023, the Company entered into the Purchase Agreement, with the purchasers, pursuant to which the Company agreed to sell securities to the Investors in a private placement (the “Private Placement”). The Purchase Agreement provided for the sale and issuance by the Company of: (i) an aggregate of 17,652,962 Shares of the Company’s common stock and pre-funded warrants to purchase up to 2,408,188 shares of Common Stock, with an exercise price of $0.001 per share, and (ii) accompanying warrants to purchase up to 10,030,575 shares of Common Stock, with an exercise price of $2.673 per share, for aggregate gross proceeds of approximately $50.0 million, before deducting private placement expenses, or $46.7 million of net proceeds. Each Share (or Pre-Funded Warrant to purchase one share) was issued with an accompanying Purchase Warrant to purchase one-half of one share, and the combined effective purchase price per Share (or Pre-Funded Warrant to purchase one share) and accompanying Purchase Warrant to purchase one-half of one share was $2.4925 (less the exercise price of the Pre-Funded Warrant, if applicable). Each Pre-Funded Warrant was exercisable immediately and will expire on May 31, 2028. Each Purchase Warrant will be exercisable at any time on or after November 30, 2023 and will expire on November 30, 2028.

The closing of the Private Placement occurred on May 31, 2023. The Company filed a shelf registration statement on Form S-3 with the SEC on June 28, 2023 and it was declared effective on July 7, 2023.

There were no warrants exercised or expired during the six months ended June 30, 2023. The following table represents a summary of the warrants outstanding and exercisable as of June 30, 2023, all of which are equity-classified:


				Number of shares Underlying Warrants
Issue Date	Exercise Price		Expiration Date	Outstanding		Exercisable
April 13, 2022	$	0.001	April 12, 2027		5,000,000		5,000,000
May 31, 2023	$	0.001	May 31, 2028		2,408,188		2,408,188
May 31, 2023	$	2.673	November 30, 2028		10,030,575		—
					17,438,763		7,408,188

April 2022 Financing

On April 13, 2022, the Company announced the closing of its private placement of common stock (or, in lieu thereof, pre-funded warrants to purchase common stock), resulting in gross proceeds of approximately $100.5 million (“the April 2022 Financing”). The Company received approximately $96.3 million in net proceeds after deducting estimated offering costs of $4.2 million. In the private placement, investors had the option to purchase either a) shares of the Company's common stock at a price of $4.22 per share, or (b) in lieu thereof, pre-funded warrants to purchase shares of the Company's common stock, with an exercise price of $0.001 per share, at a purchase price of $4.219 per share (for aggregate consideration equating to $4.22 per share). Accordingly, pursuant to the securities purchase agreement, (i) certain investors purchased an aggregate of 18,815,159 shares of common stock at the purchase price described in the foregoing sentence and (ii) certain investors purchased pre-funded warrants to purchase an aggregate of 5,000,000 shares of common stock, with the exercise price and at the purchase, in each case, described in the foregoing sentence. Each pre-funded warrant is exercisable immediately.

The pre-funded warrants were classified as a component of permanent stockholders’ equity within additional paid-in capital and were recorded at the issuance date using a relative fair value allocation method. The pre-funded warrants are equity classified because they are freestanding financial instruments that are legally detachable and separately exercisable from the equity instruments, are immediately exercisable, do not embody an obligation for the Company to repurchase its shares, permit the holders to receive a fixed number of shares of common stock upon exercise, are indexed to the Company’s common stock and meet the equity classification criteria. In addition, such pre-funded warrants do not provide any guarantee of value or return. The Company valued the pre-funded warrants at issuance, concluding that their sales price approximated their fair value, and allocated net proceeds from the sale proportionately to the common stock and pre-funded warrants, of which $19.7 million was allocated to the pre-funded warrants and recorded as a component of additional paid-in capital.

- Definition

The entire disclosure for equity.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
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+ Details

Subsequent Events - Additional Information (Details) - Watertown Lease - $ / ft²			1 Months Ended		6 Months Ended
	Jul. 12, 2023	Jul. 11, 2023	Nov. 30, 2022	Nov. 30, 2017	Jun. 30, 2023
Subsequent Event [Line Items]
Lessee, Operating Lease, Existence of Option to Extend [true false]					true
Extended lease term			2024-04	2023-04
Subsequent Events
Subsequent Event [Line Items]
Lessee, Operating Lease, Existence of Option to Extend [true false]	true
Extended lease term	2027-04	2024-04
Base rent per square feet	95.67

Fair Value Measurements

6 Months Ended

Jun. 30, 2023

Fair Value Disclosures [Abstract]

Fair Value Measurements

3. Fair Value Measurements

The following tables present information about the Company’s financial assets and liabilities measured at fair value on a recurring basis and indicate the level of the fair value hierarchy utilized to determine such fair values:


			Fair Value Measurements at Reporting Date Using
	June 30,		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
	2023
Assets:
Cash equivalents
Money market funds	$	5,144	$	5,144		—		—
Corporate debt securities		—		—		—		—
Total cash equivalents	$	5,144	$	5,144	$	—	$	—
Short-term investments:
US treasury bills		22,671		22,671		—		—
Corporate Bonds and U.S. Government Agency Securities		39,118		7,040		32,078		—
Total Short-term investments	$	61,789	$	29,711	$	32,078	$	—


			Fair Value Measurements at Reporting Date Using
	December 31,		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
	2022
Assets:

Cash equivalents
Money market funds	$	22,580	$	22,580	$	—	$	—
Corporate debt securities		7,089		2,098		4,991		—
Total cash equivalents	$	29,669	$	24,678	$	4,991	$	—
Short-term investments:
US treasury bills		2,966		2,966		—		—
Corporate Bonds and U.S. Government Agency Securities		62,378		4,732		57,646		—
Total Short-term investments	$	65,344	$	7,698	$	57,646	$	—

As of June 30, 2023, the Company’s cash equivalents were invested in money market funds which were valued based on Level 1 inputs. As of December 31, 2022, the Company’s cash equivalents were invested in money market funds which were valued based on Level 1 inputs, and highly liquid corporate debt securities which were valued based on level 2 inputs. As of June 30, 2023 and December 31, 2022, the Company's short-term investments consisted of U.S. treasury bills which were valued based on Level 1 inputs and Corporate Bonds and U.S. Government Agency Securities which were valued based on Level 2 inputs. In determining the fair value of its investments at each date presented above, the Company relied on quoted prices for similar securities in active markets or using other inputs that are observable or can be corroborated by observable market data for Level 2 investments. All available-for-sale securities have contractual maturities of less than one year. The Company did not have any financial assets or liabilities during any of the periods presented in the accompanying consolidated financial statements that required Level 3 inputs.

The carrying values of the Company’s accounts payable, accrued expenses and deferred revenue approximate their fair values due to the short-term nature of these liabilities and as such these are considered level 1 in the fair value hierarchy.

- Definition

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

+ References + Details

Fair Value Measurements - Summary of Assets and Liabilities Measured at Fair Value on Recurring Basis (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Short-term investments	$ 61,789	$ 65,344
Fair Value, Recurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents	5,144	29,669
Fair Value, Recurring [Member] \| Money Market Funds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents	5,144	22,580
Fair Value, Recurring [Member] \| Corporate Debt Securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents		7,089
Fair Value, Recurring [Member] \| US Treasury Bills
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Short-term investments	22,671	2,966
Fair Value, Recurring [Member] \| Corporate Bonds and U.S. Government Agency Securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Short-term investments	39,118	62,378
Fair Value, Recurring [Member] \| Fair Value, Inputs, Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents	5,144	24,678
Short-term investments	29,711	7,698
Fair Value, Recurring [Member] \| Fair Value, Inputs, Level 1 [Member] \| Money Market Funds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents	5,144	22,580
Fair Value, Recurring [Member] \| Fair Value, Inputs, Level 1 [Member] \| Corporate Debt Securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents		2,098
Fair Value, Recurring [Member] \| Fair Value, Inputs, Level 1 [Member] \| US Treasury Bills
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Short-term investments	22,671	2,966
Fair Value, Recurring [Member] \| Fair Value, Inputs, Level 1 [Member] \| Corporate Bonds and U.S. Government Agency Securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Short-term investments	7,040	4,732
Fair Value, Recurring [Member] \| Fair Value, Inputs, Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents		4,991
Short-term investments	32,078	57,646
Fair Value, Recurring [Member] \| Fair Value, Inputs, Level 2 [Member] \| Corporate Debt Securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents		4,991
Fair Value, Recurring [Member] \| Fair Value, Inputs, Level 2 [Member] \| Corporate Bonds and U.S. Government Agency Securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Short-term investments	$ 32,078	$ 57,646

Organization and Basis of Presentation

6 Months Ended

Jun. 30, 2023

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Organization and Basis of Presentation

1. Organization and Basis of Presentation

Lyra Therapeutics, Inc. (the “Company”) is a clinical-stage biotechnology company focused on the development and commercialization of therapies for the localized treatment of patients with chronic rhinosinusitis, or CRS. The Company’s proprietary technology is designed to consistently deliver medicines directly to the affected tissue for sustained periods with a single administration. The Company’s product candidates, LYR-210 and LYR-220, are bioresorbable polymeric implants designed to be administered in a brief, non-invasive, in-office procedure and intended to deliver six months of continuous anti-inflammatory drug therapy to the sinonasal passages for the treatment of CRS. The Company was incorporated as a Delaware corporation on November 21, 2005 and is located in Watertown, Massachusetts. On July 16, 2018, the Company formally changed its name from 480 Biomedical, Inc. to Lyra Therapeutics, Inc.

The Company is subject to risks common to companies in the therapeutics and pharmaceutical industry, including but not limited to, risks of failure of preclinical studies and clinical trials, the need to obtain marketing approval for any drug product candidate that it may identify and develop, the need to successfully commercialize and gain market acceptance of its product candidates, dependence on key personnel, protection of proprietary technology, compliance with government regulations, development by competitors of technological innovations, reliance on third-party manufacturers, the ability to transition from pilot-scale manufacturing to large-scale production of products and the need to obtain adequate additional financing to fund the development of its product candidates.

From inception through June 30, 2023, the Company has raised an aggregate of $397.0 million to fund its operations primarily from the equity financings, government grants and its License and Collaboration Agreement with LianBio discussed in Note 6.

On May 25, 2023, the Company entered into a Securities Purchase Agreement, ( the “Purchase Agreement”), with the purchasers named therein (the “Investors”), pursuant to which the Company agreed to sell securities to the Investors in a private placement (the “Private Placement”). The Purchase Agreement provided for the sale and issuance by the Company of: (i) an aggregate of 17,652,962 shares (the “Shares”) of the Company’s common stock, par value $0.001 per share (the “Common Stock”), and pre-funded warrants to purchase up to 2,408,188 shares of Common Stock (the “Pre-Funded Warrants”), with an exercise price of $0.001 per share, and (ii) accompanying warrants to purchase up to 10,030,575 shares of Common Stock (the “Purchase Warrants”), with an exercise price of $2.673 per share, for aggregate gross proceeds of approximately $50.0 million, before deducting private placement expenses. Each Share (or Pre-Funded Warrant to purchase one share) was issued with an accompanying Purchase Warrant to purchase one-half of one share, and the combined effective purchase price per Share (or Pre-Funded Warrant to purchase one share) and accompanying Purchase Warrant to purchase one-half of one share was $2.4925 (less the exercise price of the Pre-Funded Warrant, if applicable). Each Pre-Funded Warrant was exercisable immediately and will expire on May 31, 2028. Each Purchase Warrant will be exercisable at any time on or after November 30, 2023 and will expire on November 30, 2028.

The closing of the Private Placement occurred on May 31, 2023.

The Company has incurred recurring net losses since inception and has an accumulated deficit of approximately $280.5 million at June 30, 2023. The Company expects to continue to generate operating losses for the foreseeable future. At June 30, 2023, the Company had approximately $54.4 million of cash and cash equivalents and $61.8 million of short-term investments.

The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and contemplates the realization of assets and satisfaction of liabilities in the normal course of business. The Company believes its cash and cash equivalents and short-term investments as of June 30, 2023 will be sufficient to fund the Company’s operating plan for a period of at least one year from the issuance date of the condensed consolidated financial statements.

The Company expects to incur increased costs as it progresses its product candidates through clinical development. The Company will need additional financing to support its continuing operations and pursue its growth strategy. Until such time as the Company can generate significant revenue from product sales, if ever, it expects to finance its operations through a combination of equity or debt financings, collaboration agreements, strategic alliances and licensing arrangements. The Company may be unable to raise additional funds or enter into such other agreements when needed on favorable terms or at all. The inability to obtain funding as and when needed would have a negative impact on the Company’s financial condition and ability to pursue its business strategies. If the Company is unable to obtain funding when needed, the Company could be forced to delay, reduce or eliminate some or all of its research and development programs, product portfolio expansion or commercialization efforts, which could adversely affect its

business prospects, or the Company may be unable to continue operations. The Company will need to generate significant revenue to achieve profitability, and it may never do so.

Basis of Presentation

The accompanying condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”). Any reference in these notes to applicable guidance is meant to refer to the authoritative United States generally accepted accounting principles as found in the Accounting Standard Codification (“ASC”) and Accounting Standards Updates (“ASU”) of the Financial Accounting Standards Board (“FASB”).

The condensed consolidated financial statements have been prepared on the same basis as the audited annual financial statements and, in the opinion of management, reflect all adjustments, which include only normal recurring adjustments, necessary for the fair statement of the Company’s financial position as of June 30, 2023 and the results of its operations and its cash flows for the three and six months ended June 30, 2023 and 2022. The results for the three and six months ended June 30, 2023 are not necessarily indicative of results to be expected for the year ending December 31, 2023, any other interim periods, or any future year or period. These condensed consolidated financial statements should be read in conjunction with the audited financial statements as of and for the year ended December 31, 2022, and the notes thereto, which are included in the Company’s Annual Report on Form 10-K filed with the Securities and Exchange Commission (“SEC”) on March 29, 2023.

Condensed Consolidated Statements of Stockholders' Equity (Parenthetical) (unaudited) - USD ($) $ in Thousands	3 Months Ended
	Jun. 30, 2023	Jun. 30, 2022
Statement of Stockholders' Equity [Abstract]
Issuance cost	$ 3,332	$ 4,244

Summary of Significant Accounting Policies (Policies)

6 Months Ended

Jun. 30, 2023

Accounting Policies [Abstract]

Basis of Presentation

Comprehensive Loss

Comprehensive loss includes net loss as well as other changes in stockholders’ equity that result from transactions and economic events other than those with stockholders. For the three and six months ended June 30, 2023, other comprehensive income consisted of unrealized gains and losses, net of taxes from its short-term investments.

As the Company did not have any element of other comprehensive income or loss during the three and six months ended June 30, 2022, its comprehensive loss is equal to its net loss for the three and six months ended June 30, 2022.

Restricted Cash

The Company had restricted cash of approximately $1.4 million as of June 30, 2023 and December 31, 2022. These balances were held secured as of June 30, 2023 at one of the Company’s financial institution to secure the Company’s letters of credit for its facility leases.

The Company’s statements of cash flows include restricted cash with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on such statements. A reconciliation of the cash, cash equivalents, and restricted cash reported within the balance sheet that sum to the total of the same amounts shown in the statement of cash flows is as follows:


	June 30,		December 31,
	2023		2022
Cash and cash equivalents	$	54,361	$	32,550
Restricted cash		1,392		1,392
Total	$	55,753	$	33,942

Net Loss per Share

The Company has reported losses since inception and has computed basic net loss per share attributable to common stockholders by dividing net loss attributable to common stockholders by the weighted-average number of common shares outstanding for the period, without consideration for potentially dilutive securities. The Company has included pre-funded warrants to purchase

7,408,188 shares of common stock at an exercise price of $0.001 in its computation of basic net loss per share based on the nominal exercise price. Diluted net loss per share is computed using the more dilutive of (a) the two-class method, or (b) treasury stock method, as applicable, to the potentially dilutive instruments. The weighted-average number of common shares outstanding gives effect to all potentially dilutive common equivalent shares, including outstanding stock options, restricted stock units, and purchase warrants. Because the Company has reported net losses since inception, these potential common shares have been anti-dilutive and basic and diluted loss per share have been the same.

The following table sets forth the potentially dilutive securities that have been excluded from the calculation of diluted net loss per share because to include them would be anti-dilutive (in common stock equivalent shares):


	Six Months Ended June 30,
	2023		2022
Stock options		5,871,813		4,017,726
Common stock warrants		10,030,575		—
Restricted stock units		243,703		42,353
Total		16,146,091		4,060,079

Recently Issued Accounting Pronouncements

From time to time, new accounting pronouncements are issued by the FASB or other standard setting bodies and adopted by the Company as of the specified effective date. Unless otherwise discussed, the Company believes that the impact of recently issued standards that are not yet effective will not have a material impact on the Company’s consolidated financial position, results of operations or cash flows.

Effective January 1, 2023, the Company adopted Accounting Standards Update (ASU) No. 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (ASU 2016-13). ASU 2016-13 requires that credit losses be reported as an allowance using an expected losses model, representing the entity’s current estimate of credit losses expected to be incurred. For available-for-sale debt securities with unrealized losses, this standard now requires allowances to be recorded instead of reducing the amortized cost of the investment. The adoption of ASU 2016-13 did not have a material impact on its consolidated financial statements.

Collaboration Agreement - Revenue Recognized Related to Each of the Performance Obligations and the Remaining Deferred Revenue (Details) $ in Thousands	6 Months Ended
	Jun. 30, 2023 USD ($)
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Deferred revenue at December 31, 2022	$ 15,352
Revenue recognized	(868)
Deferred revenue at June 30, 2023	14,484
Combined Performance Obligation
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Deferred revenue at December 31, 2022	11,748
Deferred revenue at June 30, 2023	11,748
Development Activities Performance Obligation
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Deferred revenue at December 31, 2022	3,604
Revenue recognized	(868)
Deferred revenue at June 30, 2023	$ 2,736

Collaboration Agreement (Tables)

6 Months Ended

Jun. 30, 2023

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Summary of Transaction Price

The following table reflects the transaction price (in thousands):


	As of June 30, 2023
	Post-Milestone
Combined Performance Obligation	$	11,862
Development Activities Performance Obligation		5,138
Total	$	17,000

Schedule of Revenue Recognized Related to Each of the Performance Obligations and the Remaining Deferred Revenue

The following table reflects the revenue recognized related to each of the performance obligations and the remaining deferred revenue (in thousands):


	As of June 30, 2023
	Combined Performance Obligation		Development Activities Performance Obligation			Total
Deferred revenue at December 31, 2022	$	11,748	$	3,604		$	15,352
Milestone		—		—			—
Revenue recognized		—		(868	)		(868	)
Deferred revenue at June 30, 2023	$	11,748	$	2,736		$	14,484

Stock-Based Compensation Expense

6 Months Ended

Jun. 30, 2023

Share-Based Payment Arrangement [Abstract]

Stock-Based Compensation Expense

5. Stock-Based Compensation Expense

A summary of the restricted stock unit activity under the Plans for the six months ended June 30, 2023 was as follows:


	Shares			Weighted- Average Grant Date Fair Value
Restricted stock units outstanding as of December 31, 2022		28,212		$	4.78
Granted		270,716		$	2.85
Vested		(7,041	)	$	4.78
Forfeited		(48,184	)	$	2.93
Restricted stock units outstanding as of June 30, 2023		243,703		$	3.00

A summary of the stock option activity under the Plans for the six months ended June 30, 2023 was as follows:


	Shares			Weighted- Average Exercise Price		Weighted- Average Remaining Contractual Life (in years)		Aggregate Intrinsic Value (in thousands)
Outstanding at December 31, 2022		4,311,333		$	7.07		8.2	$	378
Granted		1,976,180			2.85
Exercised		(57,377	)		1.75
Cancelled		(358,323	)		8.13
Outstanding at June 30, 2023		5,871,813		$	5.63		8.5	$	3,090


	Three Months Ended June 30,						Six Months Ended June 30,
	2023			2022			2023			2022
Risk-free interest rate		3.8	%		3.2	%		3.7	%		2.5	%
Expected dividend yield		—	%		—	%		—	%		—	%
Expected term (in years)		6.1			2.1			6.0			3.3
Expected volatility		82.0	%		80.6	%		82.9	%		80.7	%

The weighted-average fair value of options granted to employees, directors and non-employees during the three months ended June 30, 2023 and 2022 was $2.24 and $3.73, respectively, and $2.07 and $3.24 for the six months ended June 30, 2023 and 2022.

Stock-based compensation expense included in the Company’s consolidated statements of operations and comprehensive loss was as follows (in thousands):


	Three Months Ended June 30,				Six Months Ended June 30,
	2023		2022		2023		2022
Research and development	$	287	$	209	$	571	$	436
General and administrative		1,067		898		2,393		1,515
Total	$	1,354	$	1,107	$	2,964	$	1,951

Unrecognized share-based compensation related to stock-based options amounted to $9.9 million at June 30, 2023 and is expected to be recognized over a weighted average period of approximately 2.46 years. Unrecognized share-based compensation related to restricted stock units amounted to $0.7 million at June 30, 2023 and is expected to be recognized over a weighted average period of approximately 3.48 years.

At June 30, 2023, there were 1,182,286 shares available for grant under the Company’s 2020 Incentive Award Plan and 170,000 shares available for grant under the Company’s 2022 Inducement Award Plan.

Condensed Consolidated Statements of Operations and Comprehensive Loss (unaudited) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Income Statement [Abstract]
Collaboration revenue	$ 458	$ 525	$ 868	$ 993
Operating expenses:
Research and development	10,799	10,793	23,395	19,298
General and administrative	4,570	4,132	9,697	8,020
Loss on impairment of long-lived assets	1,592		1,592
Total operating expenses	16,961	14,925	34,684	27,318
Loss from operations	(16,503)	(14,400)	(33,816)	(26,325)
Other income:
Interest income	897	34	1,969	48
Total other income	897	34	1,969	48
Loss before income tax expense	(15,606)	(14,366)	(31,847)	(26,277)
Income tax expense	(12)		(26)
Net loss	(15,618)	(14,366)	(31,873)	(26,277)
Unrealized holding loss on short-term investments, net of tax	(15)		(37)
Comprehensive loss	$ (15,633)	$ (14,366)	$ (31,910)	$ (26,277)
Net loss per share attributable to common stockholders- basic	$ (0.36)	$ (0.42)	$ (0.79)	$ (1.12)
Net loss per share attributable to common stockholders- diluted	$ (0.36)	$ (0.42)	$ (0.79)	$ (1.12)
Weighted-average common shares outstanding-basic	43,676,387	33,946,428	40,273,472	23,535,442
Weighted-average common shares outstanding-diluted	43,676,387	33,946,428	40,273,472	23,535,442

Income Taxes (Additional Information) (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Income Tax Disclosure [Abstract]
Deferred tax assets, valuation allowance income tax expense (benefit)	$ 12,000	$ 0	$ 26,000	$ 0

Leases (Tables)

6 Months Ended

Jun. 30, 2023

Leases [Abstract]

Components of Lease Cost

The components of lease cost recorded in the Company’s condensed consolidated financial statements were as follows (in thousands):


	Three Months Ended June 30,				Six Months Ended June 30,
	2023		2022		2023		2022
Lease Cost:
Operating lease cost	$	444	$	264	$	888	$	528
Variable lease cost		248		1,996		494		2,874
Total lease cost	$	692	$	2,260	$	1,382	$	3,402

Summary of Weighted-Average Remaining Lease Term and Discount Rate Related to Operating Leases

The weighted-average remaining lease term and discount rate related to the Company’s operating leases were as follows:


	As of June 30, 2023
Weighted-average remaining lease term (in years)		0.8
Weighted-average discount rate		8.2	%

Collaboration Agreement - Additional Information (Details) - USD ($)	1 Months Ended	3 Months Ended		6 Months Ended
	Feb. 28, 2022	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items]
Deferred revenue, description				Under the LianBio License Agreement, in order to evaluate the transaction price for purposes of ASC 606, the Company determined that the upfront payment of $12.0 million and the reimbursable cost of the clinical supply of LYR-210 constitute the entirety of the consideration to be included in the transaction price as of the outset of the arrangement, which was allocated to the two performance obligations as follows: $8.4 million to the Combined Performance Obligation and $3.6 million to the Development Activities Performance Obligation. In February 2022, the Company received $5.0 million upon achievement of the first of the development milestones related to dosing its first patient and the transaction price was adjusted by $5.0 million which was allocated to the two performance obligations as follows: $3.5 million to the Combined Performance Obligation and $1.5 million to the Development Activities Performance Obligation. The remaining potential milestone payments that the Company is eligible to receive were excluded from the transaction price as of June 30, 2023, as all milestone amounts were fully constrained based on the probability of achievement.
Combined performance obligation		$ 8,400,000		$ 8,400,000
Development activities performance obligation		3,600,000		3,600,000
Collaboration revenue		458,000	$ 525,000	868,000	$ 993,000
Change in transaction price				0
Clinical Supply Agreement
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items]
Upfront payment recognition in future periods to settlement of obligation		12,000,000		12,000,000
Milestone Achievements
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items]
Upfront payment recognition in future periods to settlement of obligation	$ 5,000,000
Combined performance obligation	3,500,000
Development activities performance obligation		1,500,000		1,500,000
Collaboration revenue	$ 5,000,000
Post-Milestone
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items]
Upfront payment recognition in future periods to settlement of obligation		17,000,000		17,000,000
Combined performance obligation		11,862,000		11,862,000
Development activities performance obligation		$ 5,138,000		$ 5,138,000

Collaboration Agreement - Summary of Transaction Price (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Feb. 28, 2022
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Combined performance obligation	$ 8,400
Development activities performance obligation	3,600
Milestone
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Combined performance obligation		$ 3,500
Development activities performance obligation	1,500
Total		$ 5,000
Post-Milestone
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Combined performance obligation	11,862
Development activities performance obligation	5,138
Total	$ 17,000

Fair Value Measurements - Additional Information (Details) - USD ($)	Jun. 30, 2023	Dec. 31, 2022
Fair Value Disclosures [Abstract]
Financial assets, fair value	$ 0	$ 0
Financial liabilities, fair value	$ 0	$ 0

Summary of Significant Accounting Policies - Summary of Reconciliation of Cash, Cash Equivalents and Restricted Cash Reported within Balance Sheet (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Cash, Cash Equivalents, Restricted Cash, and Restricted Cash Equivalents [Abstract]
Cash and cash equivalents	$ 54,361	$ 32,550
Restricted cash	1,392	1,392
Total	$ 55,753	$ 33,942

Stock-Based Compensation Expense - Summary of Stock Option Activity Under Plans (Details) $ / shares in Units, $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2023 USD ($) $ / shares shares	Dec. 31, 2022 USD ($) $ / shares shares
Share-Based Payment Arrangement [Abstract]
Shares, Outstanding December 31, 2022 \| shares	4,311,333
Shares, Granted \| shares	1,976,180
Shares, Exercised \| shares	(57,377)
Shares, Cancelled \| shares	(358,323)
Shares, Outstanding at June 30, 2023 \| shares	5,871,813	4,311,333
Weighted Average Exercise Price, Outstanding December 31, 2022 \| $ / shares	$ 7.07
Weighted Average Exercise Price, Granted \| $ / shares	2.85
Weighted Average Exercise Price, Exercised \| $ / shares	1.75
Weighted Average Exercise Price, Cancelled \| $ / shares	8.13
Weighted Average Exercise Price, Outstanding at June 30, 2023 \| $ / shares	$ 5.63	$ 7.07
Outstanding, Weighted Average Remaining Contractual Life (in years)	8 years 6 months	8 years 2 months 12 days
Aggregate Intrinsic Value, Outstanding \| $	$ 3,090	$ 378

Condensed Consolidated Balance Sheets (unaudited) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Current assets:
Cash and cash equivalents	$ 54,361	$ 32,550
Short-term investments	61,789	65,344
Restricted cash	303
Prepaid expenses and other current assets	1,800	2,935
Total current assets	118,253	100,829
Property and equipment, net	560	2,243
Operating lease right-of-use assets	1,420	2,223
Restricted cash	1,089	1,392
Other assets	4,353	3,281
Total assets	125,675	109,968
Current liabilities:
Accounts payable	4,188	2,616
Accrued expenses and other current liabilities	6,738	9,030
Operating lease liabilities	1,688	1,549
Deferred revenue	1,497	1,275
Total current liabilities	14,111	14,470
Operating lease liabilities, net of current portion		667
Deferred revenue, net of current portion	12,987	14,077
Total liabilities	27,098	29,214
Commitments and contingencies (Note 9)
Stockholders’ equity:
Preferred stock, $0.001 par value, 10,000,000 shares authorized at June 30, 2023 and December 31, 2022; no shares issued and outstanding at June 30, 2023 and December 31, 2022
Common stock, $0.001 par value; 200,000,000 shares authorized at June 30, 2023 and December 31, 2022; 49,545,039 and 31,827,659 shares issued and outstanding at June 30, 2023 and December 31, 2022, respectively	50	32
Additional paid-in capital	379,102	329,387
Accumulated other comprehensive income (loss), net of tax	(27)	10
Accumulated deficit	(280,548)	(248,675)
Total stockholders’ equity	98,577	80,754
Total liabilities and stockholders’ equity	$ 125,675	$ 109,968

Collaboration Agreement

6 Months Ended

Jun. 30, 2023

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Collaboration Agreement

6. Collaboration Agreement

Under the LianBio License Agreement, in order to evaluate the transaction price for purposes of ASC 606, the Company determined that the upfront payment of $12.0 million and the reimbursable cost of the clinical supply of LYR-210 constitute the entirety of the consideration to be included in the transaction price as of the outset of the arrangement, which was allocated to the two performance obligations as follows: $8.4 million to the Combined Performance Obligation and $3.6 million to the Development Activities Performance Obligation. In February 2022, the Company received $5.0 million upon achievement of the first of the development milestones related to dosing its first patient and the transaction price was adjusted by $5.0 million which was allocated to the two performance obligations as follows: $3.5 million to the Combined Performance Obligation and $1.5 million to the

Development Activities Performance Obligation. The remaining potential milestone payments that the Company is eligible to receive were excluded from the transaction price as of June 30, 2023, as all milestone amounts were fully constrained based on the probability of achievement.

The Company and LianBio amended the LianBio License Agreement on September 26, 2022, to allow, among other things, LianBio to conduct its own Phase 3 clinical trial and adjust certain future milestones. The amendment also requires both parties to negotiate a supply agreement prior to December 31, 2022. There was a side letter executed on December 27, 2022 which extended the negotiations of a supply agreement and the parties continue to work towards the completion thereof. The amendment did not result in any change in the Company’s determination of its performance obligations under the arrangement and all future milestones remain constrained from the transaction price. The Company has determined that the contract modification did not have a material impact on the allocation of the transaction price to the two performance obligations.

The Company will recognize the revenue associated with the Combined Performance Obligation as the clinical supply of LYR-210 is delivered. The Company recognizes revenue associated with the Development Activities Performance Obligation as the development activities are performed using an input method, according to the costs incurred as to the development activities related to the global Phase 3 clinical trial and the costs expected to be incurred in the future to satisfy the performance obligation. The transfer of control occurs over this time period and, in management’s judgment, is the best measure of progress towards satisfying the performance obligation. The amounts received that have not yet been recognized as revenue are deferred as a contract liability on the Company’s consolidated balance sheet and will be recognized as the clinical supply of LYR-210 is delivered and over the remaining time it takes to conduct the global Phase 3 clinical trial, respectively.

There were no changes in the transaction price from December 31, 2022 to June 30, 2023. The following table reflects the transaction price (in thousands):


	As of June 30, 2023
	Post-Milestone
Combined Performance Obligation	$	11,862
Development Activities Performance Obligation		5,138
Total	$	17,000

The following table reflects the revenue recognized related to each of the performance obligations and the remaining deferred revenue (in thousands):


	As of June 30, 2023
	Combined Performance Obligation		Development Activities Performance Obligation			Total
Deferred revenue at December 31, 2022	$	11,748	$	3,604		$	15,352
Milestone		—		—			—
Revenue recognized		—		(868	)		(868	)
Deferred revenue at June 30, 2023	$	11,748	$	2,736		$	14,484

Development and regulatory milestone fees, which are a type of variable consideration, are recognized as revenue to the extent that it is probable that a significant reversal will not occur. Note that the allocated deferred revenue associated with the clinical supply agreement has been recorded as long term deferred revenue given the potential uncertainty of delivery within the next twelve months.

Entities affiliated with Perceptive Advisors, LLC are shareholders of both the Company and LianBio. Additionally, two of the Company’s directors are Managing Directors at Perceptive Advisors, LLC and one of these directors is also the Executive Chairman of LianBio’s board of directors.

Fair Value Measurements (Tables)

6 Months Ended

Jun. 30, 2023

Fair Value Disclosures [Abstract]

Summary of Assets and Liabilities Measured at Fair Value on Recurring Basis


			Fair Value Measurements at Reporting Date Using
	June 30,		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
	2023
Assets:
Cash equivalents
Money market funds	$	5,144	$	5,144		—		—
Corporate debt securities		—		—		—		—
Total cash equivalents	$	5,144	$	5,144	$	—	$	—
Short-term investments:
US treasury bills		22,671		22,671		—		—
Corporate Bonds and U.S. Government Agency Securities		39,118		7,040		32,078		—
Total Short-term investments	$	61,789	$	29,711	$	32,078	$	—


			Fair Value Measurements at Reporting Date Using
	December 31,		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
	2022
Assets:

Cash equivalents
Money market funds	$	22,580	$	22,580	$	—	$	—
Corporate debt securities		7,089		2,098		4,991		—
Total cash equivalents	$	29,669	$	24,678	$	4,991	$	—
Short-term investments:
US treasury bills		2,966		2,966		—		—
Corporate Bonds and U.S. Government Agency Securities		62,378		4,732		57,646		—
Total Short-term investments	$	65,344	$	7,698	$	57,646	$	—

Commitments and Contingencies - Additional Information (Details) $ in Millions	Jun. 01, 2023 USD ($)
Commitments and Contingencies Disclosure [Abstract]
Claims for breach of implied covenant of good and fair dealing	$ 7

Summary of Significant Accounting Policies - Summary of Potentially Dilutive Securities Excluded from Calculation of Diluted Net Loss per Share (Details) - shares	6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Potentially dilutive securities excluded from calculation of diluted net loss per share	16,146,091	4,060,079
Stock options
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Potentially dilutive securities excluded from calculation of diluted net loss per share	5,871,813	4,017,726
Common stock warrants
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Potentially dilutive securities excluded from calculation of diluted net loss per share	10,030,575
Restricted stock units
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Potentially dilutive securities excluded from calculation of diluted net loss per share	243,703	42,353

Leases - Schedule of Components of Lease Cost (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Lease Cost:
Operating lease cost	$ 444	$ 264	$ 888	$ 528
Variable lease cost	248	1,996	494	2,874
Total lease cost	$ 692	$ 2,260	$ 1,382	$ 3,402

Leases

6 Months Ended

Jun. 30, 2023

Leases [Abstract]

Leases

8. Leases

Watertown Lease

In August 2007, the Company entered into an operating lease, as amended, for office and laboratory space in Watertown, Massachusetts. In November 2017, the Company amended its lease (“2017 Amendment”) to extend the lease term through April 2023. In November 2022, the Company amended the lease to extend the lease term through April 2024. The lease includes certain rent escalations. The lease modification was assessed as of December 31, 2022 and changes to the right of use asset and liability was reflected within the consolidated balance sheet.

The Company maintains a letter of credit of approximately $0.3 million securing its obligations under the operating lease, which is included as restricted cash in the consolidated balance sheets. Rent expense is recognized on a straight-line basis over the terms of occupancy.

Waltham Lease

In May 2022, the Company executed a new lease for laboratory and office space. This lease will be recorded on the Company's balance sheet when the Company obtains possession of the underlying asset, which is expected to occur in the fourth quarter of 2023, following completion of construction to prepare the premises for the Company’s intended use. Annual base rent will start at $2.2 million increasing 3% per year through the original non-cancelable term of the lease, which is ten years and two months following the lease commencement date. The Company has the option to extend the lease for one additional 5-year term and is responsible for real estate taxes, maintenance, and other operating expenses applicable to the leased premises.

As of June 30, 2023, the lease was not recorded on the condensed consolidated balance sheet as the facility is under construction. As payments are made by the Company relating to landlord-owned leasehold improvements, they will be recorded to prepaid rent as a component of other non-current assets. On the lease commencement date, the Company plans to reclassify the prepayment to the right-of-use asset, thereby increasing its initial value, but the prepayment will not be included in the measurement of the lease liability. As of June 30, 2023, approximately $3.4 million of prepaid rent was recorded in other assets. The lease will be recorded as a component of the Company’s right-of-use asset and operating lease liabilities when the lease commencement date occurs.

The Company provided a letter of credit in the amount of $1.1 million as a security for the lease, which expires on April 1, 2024, at which point the letter will automatically renew each calendar year up to but not beyond July 31, 2033. The cash securing the letter of credit is classified as restricted cash on the consolidated balance sheet.

In addition to the leases discussed above, the Company is party to an April 2020 lease for office equipment that expires in June 2024. The equipment lease is accounted for as an operating lease.

Embedded Leases

In April 2021, the Company entered into a clinical supply agreement with a CMO for clinical production of the Company’s product candidates at an existing facility and a facility under construction. The Company concluded that this clinical supply agreement contains embedded operating leases as the clean rooms in the existing facility and the new facility are designated for the Company’s exclusive use during the term of the agreement and the clinical supply agreement contains fixed commitments and variable costs related to production and material costs in excess of the fixed commitment specified in the agreement. The Company determined that it did not control the new facility during construction and, thus, the lease did not fall in the scope of “build-to-suit” accounting. The term of the clinical supply agreement is five years and will automatically renew for additional successive terms of one year unless either party gives notice of nonrenewal.

The lease period for the existing facility is less than 12 months and the Company has elected to apply the practical expedient in ASC Topic 842, Leases (“ASC 842”), to not recognize a lease liability or right-of-use asset but instead, recognize lease payments as an expense on a straight-line basis over the lease term and variable lease payments that do not depend on an index or rate, as an expense in the period in which the variable lease costs are incurred based on performance or usage in accordance with the clinical supply agreement. In October 2022, the Company terminated the agreement with the contract manufacturing organization.

The components of lease cost recorded in the Company’s condensed consolidated financial statements were as follows (in thousands):


	Three Months Ended June 30,				Six Months Ended June 30,
	2023		2022		2023		2022
Lease Cost:
Operating lease cost	$	444	$	264	$	888	$	528
Variable lease cost		248		1,996		494		2,874
Total lease cost	$	692	$	2,260	$	1,382	$	3,402

Variable lease payments include the Company’s allocated share of costs incurred and expenditures made by the landlord in the operation and management of the building and variable lease costs associated with the Company’s CMO embedded lease arrangement. During the three and six months ended June 30, 2023, the Company recorded no costs as research and development expense related to the CMO embedded lease compared to $1.8 million and $2.5 million in the comparable period of the prior year, respectively.

The weighted-average remaining lease term and discount rate related to the Company’s operating leases were as follows:


	As of June 30, 2023
Weighted-average remaining lease term (in years)		0.8
Weighted-average discount rate		8.2	%

Leases - Summary of Weighted-Average Remaining Lease Term and Discount Rate Related to Operating Leases (Details)	Jun. 30, 2023
Leases [Abstract]
Weighted-average remaining lease term (in years)	9 months 18 days
Weighted-average discount rate	8.20%

Stock-Based Compensation Expense - Additional Information (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Number of shares granted			1,976,180
Common stock shares issued	49,545,039		49,545,039		31,827,659
Stock-based compensation expense	$ 1,354	$ 1,107	$ 2,964	$ 1,951
Exercise price per share, granted			$ 2.85
Weighted-average fair value of options granted to employees, directors and non-employees	$ 2.24	$ 3.73	$ 2.07	$ 3.24
Stock Options
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Unrecognized expense	$ 9,900		$ 9,900
Unrecognized share based compensation amount recognition term			2 years 5 months 15 days
Restricted Stock Units
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Unrecognized expense	$ 700		$ 700
Unrecognized share based compensation amount recognition term			3 years 5 months 23 days
2020 Plan
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Shares available for grant			1,182,286
Inducement Award Plan
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Shares available for grant			170,000

Summary of Significant Accounting Policies

6 Months Ended

Jun. 30, 2023

Accounting Policies [Abstract]

Summary of Significant Accounting Policies

2. Summary of Significant Accounting Policies

The Company’s significant accounting policies are disclosed in the audited consolidated financial statements for the year ended December 31, 2022, included in the Company’s Annual Report on Form 10-K filed with the SEC on March 29, 2023. Since the date of those financial statements, there have been no changes to its significant accounting policies except as noted below.

Comprehensive Loss

Restricted Cash


	June 30,		December 31,
	2023		2022
Cash and cash equivalents	$	54,361	$	32,550
Restricted cash		1,392		1,392
Total	$	55,753	$	33,942

Net Loss per Share


	Six Months Ended June 30,
	2023		2022
Stock options		5,871,813		4,017,726
Common stock warrants		10,030,575		—
Restricted stock units		243,703		42,353
Total		16,146,091		4,060,079

Recently Issued Accounting Pronouncements

Stockholders' Equity (Tables)

6 Months Ended

Jun. 30, 2023

Equity [Abstract]

Summary of Warrants Outstanding and Exercisable

The following table represents a summary of the warrants outstanding and exercisable as of June 30, 2023, all of which are equity-classified:


				Number of shares Underlying Warrants
Issue Date	Exercise Price		Expiration Date	Outstanding		Exercisable
April 13, 2022	$	0.001	April 12, 2027		5,000,000		5,000,000
May 31, 2023	$	0.001	May 31, 2028		2,408,188		2,408,188
May 31, 2023	$	2.673	November 30, 2028		10,030,575		—
					17,438,763		7,408,188

Stock-Based Compensation Expense - Schedule of Fair Value of Stock Option Estimated on Date of Grant Using Black-Scholes Option-Pricing Model or Monte Carlo Simulation in Case of Options Granted to Executive Officers (Details)	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Share-Based Payment Arrangement [Abstract]
Risk-free interest rate	3.80%	3.20%	3.70%	2.50%
Expected term (in years)	6 years 1 month 6 days	2 years 1 month 6 days	6 years	3 years 3 months 18 days
Expected volatility	82.00%	80.60%	82.90%	80.70%

Summary of Significant Accounting Policies (Tables)

6 Months Ended

Jun. 30, 2023

Accounting Policies [Abstract]

Summary of Reconciliation of Cash, Cash Equivalents and Restricted Cash Reported within Balance Sheet

A reconciliation of the cash, cash equivalents, and restricted cash reported within the balance sheet that sum to the total of the same amounts shown in the statement of cash flows is as follows:


	June 30,		December 31,
	2023		2022
Cash and cash equivalents	$	54,361	$	32,550
Restricted cash		1,392		1,392
Total	$	55,753	$	33,942

Summary of Potentially Dilutive Securities Excluded from Calculation of Diluted Net Loss per Share


	Six Months Ended June 30,
	2023		2022
Stock options		5,871,813		4,017,726
Common stock warrants		10,030,575		—
Restricted stock units		243,703		42,353
Total		16,146,091		4,060,079

Summary of Significant Accounting Policies - Additional Information (Details) - USD ($) $ / shares in Units, $ in Thousands	6 Months Ended
	Jun. 30, 2023	Dec. 31, 2022
Accounting Policies [Line Items]
Restricted cash	$ 1,392	$ 1,392
Pre Funded Warrants
Accounting Policies [Line Items]
Issuance of pre-funded warrants to purchase shares of common stock	7,408,188
Common stock par value	$ 0.001

Condensed Consolidated Statements of Stockholders' Equity (unaudited) - USD ($) $ in Thousands	Total	Common Stock	Additional Paid-in Capital	Accumulated Other Comprehensive Income (Loss), net of tax	Accumulated Deficit
Balance at Dec. 31, 2021	$ 34,316	$ 13	$ 227,700		$ (193,397)
Balance, Shares at Dec. 31, 2021		13,007,178
Exercise of common stock options	8		8
Exercise of common stock options, Shares		2,718
Stock-based compensation	844		844
Net loss	(11,911)				(11,911)
Balance at Mar. 31, 2022	23,257	$ 13	228,552		(205,308)
Balance, Shares at Mar. 31, 2022		13,009,896
Balance at Dec. 31, 2021	34,316	$ 13	227,700		(193,397)
Balance, Shares at Dec. 31, 2021		13,007,178
Net loss	(26,277)
Balance at Jun. 30, 2022	106,249	$ 32	325,891		(219,674)
Balance, Shares at Jun. 30, 2022		31,826,357
Balance at Mar. 31, 2022	23,257	$ 13	228,552		(205,308)
Balance, Shares at Mar. 31, 2022		13,009,896
Issuance of common stock and pre-fundedwarrants, net of issuance costs	96,251	$ 19	96,232
Issuance of common stock and pre-funded warrants, net of issuance costs, Shares		18,815,159
Issuance of common stock upon RSU vesting, shares		1,302
Stock-based compensation	1,107		1,107
Net loss	(14,366)				(14,366)
Balance at Jun. 30, 2022	106,249	$ 32	325,891		(219,674)
Balance, Shares at Jun. 30, 2022		31,826,357
Balance at Dec. 31, 2022	80,754	$ 32	329,387	$ 10	(248,675)
Balance, Shares at Dec. 31, 2022		31,827,659
Issuance of common stock upon RSU vesting, shares		7,041
Exercise of common stock options	4		4
Exercise of common stock options, Shares		2,115
Unrealized loss on available-for-sale securities	(22)			(22)
Stock-based compensation	1,610		1,610
Net loss	(16,255)				(16,255)
Balance at Mar. 31, 2023	66,091	$ 32	331,001	(12)	(264,930)
Balance, Shares at Mar. 31, 2023		31,836,815
Balance at Dec. 31, 2022	$ 80,754	$ 32	329,387	10	(248,675)
Balance, Shares at Dec. 31, 2022		31,827,659
Exercise of common stock options, Shares	57,377
Net loss	$ (31,873)
Balance at Jun. 30, 2023	98,577	$ 50	379,102	(27)	(280,548)
Balance, Shares at Jun. 30, 2023		49,545,039
Balance at Mar. 31, 2023	66,091	$ 32	331,001	(12)	(264,930)
Balance, Shares at Mar. 31, 2023		31,836,815
Issuance of common stock and pre-fundedwarrants, net of issuance costs	46,668	$ 18	46,650
Issuance of common stock and pre-funded warrants, net of issuance costs, Shares		17,652,962
Exercise of common stock options	97		97
Exercise of common stock options, Shares		55,262
Unrealized loss on available-for-sale securities	(15)			(15)
Stock-based compensation	1,354		1,354
Net loss	(15,618)				(15,618)
Balance at Jun. 30, 2023	$ 98,577	$ 50	$ 379,102	$ (27)	$ (280,548)
Balance, Shares at Jun. 30, 2023		49,545,039

Organization and Basis of Presentation - Additional Information (Details) - USD ($) $ / shares in Units, $ in Thousands			3 Months Ended				6 Months Ended
	May 25, 2023	Apr. 13, 2022	Jun. 30, 2023	Mar. 31, 2023	Jun. 30, 2022	Mar. 31, 2022	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022
Organization And Basis Of Presentation [Line Items]
Fund raised for operations							$ 397,000
Net losses			$ 15,618	$ 16,255	$ 14,366	$ 11,911	31,873	$ 26,277
Accumulated deficit			(280,548)				(280,548)		$ (248,675)
Cash and cash equivalents			54,361				54,361		32,550
Short-term investments			$ 61,789				$ 61,789		$ 65,344
Common stock par value			$ 0.001				$ 0.001		$ 0.001
Pre Funded Warrants
Organization And Basis Of Presentation [Line Items]
Issuance of common stock							7,408,188
Warrants exercise price, per share			$ 0.001				$ 0.001
Aggregate gross proceeds from issuance of warrants							$ 19,700
Private Placement
Organization And Basis Of Presentation [Line Items]
Net proceeds from private placement		$ 96,300
Warrants purchase price		$ 4.219
Private Placement \| Purchase Agreement
Organization And Basis Of Presentation [Line Items]
Aggregate gross proceeds from issuance of warrants	$ 50,000
Warrants purchase price	$ 2.4925
Conversion of stock, description							Each Share (or Pre-Funded Warrant to purchase one share) was issued with an accompanying Purchase Warrant to purchase one-half of one share, and the combined effective purchase price per Share (or Pre-Funded Warrant to purchase one share) and accompanying Purchase Warrant to purchase one-half of one share was $2.4925 (less the exercise price of the Pre-Funded Warrant, if applicable).
Private Placement \| Pre Funded Warrants
Organization And Basis Of Presentation [Line Items]
Issuance of common stock		5,000,000
Warrants exercise price, per share		$ 0.001
Private Placement \| Pre Funded Warrants \| Purchase Agreement
Organization And Basis Of Presentation [Line Items]
Warrants exercise price, per share	$ 0.001
Warrants to purchase common shares	2,408,188
Class of warrant or right, expiration description							Each Pre-Funded Warrant was exercisable immediately and will expire on May 31, 2028.
Common Stock \| Private Placement
Organization And Basis Of Presentation [Line Items]
Issuance of common stock		18,815,159
Common Stock \| Private Placement \| Purchase Agreement
Organization And Basis Of Presentation [Line Items]
Issuance of common stock	17,652,962
Common stock par value	$ 0.001
Purchase Warrants \| Private Placement \| Purchase Agreement
Organization And Basis Of Presentation [Line Items]
Warrants exercise price, per share	$ 2.673
Warrants to purchase common shares	10,030,575
Class of warrant or right, expiration description							Each Purchase Warrant will be exercisable at any time on or after November 30, 2023 and will expire on November 30, 2028.

Document And Entity Information - shares	6 Months Ended
Document And Entity Information - shares	Jun. 30, 2023	Aug. 01, 2023
Cover [Abstract]
Entity Registrant Name	Lyra Therapeutics, Inc.
Document Type	10-Q
Current Fiscal Year End Date	--12-31
Entity Common Stock, Shares Outstanding		49,545,559
Amendment Flag	false
Entity Central Index Key	0001327273
Entity Filer Category	Non-accelerated Filer
Document Period End Date	Jun. 30, 2023
Document Fiscal Year Focus	2023
Document Fiscal Period Focus	Q2
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Shell Company	false
Entity Small Business	true
Entity Emerging Growth Company	true
Entity Ex Transition Period	false
Entity File Number	001-39273
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	84-1700838
Entity Address, Address Line One	480 Arsenal Way
Entity Address, City or Town	Watertown
Entity Address, State or Province	MA
Entity Address, Postal Zip Code	02472
City Area Code	617
Local Phone Number	393-4600
Document Quarterly Report	true
Document Transition Report	false
Title of 12(b) Security	Common Stock, $0.001 par value per share
Trading Symbol	LYRA
Security Exchange Name	NASDAQ

Condensed Consolidated Balance Sheets (Parenthetical) (unaudited) - $ / shares	Jun. 30, 2023	Dec. 31, 2022
Statement of Financial Position [Abstract]
Preferred stock, par value	$ 0.001	$ 0.001
Preferred stock, shares authorized	10,000,000	10,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock par value	$ 0.001	$ 0.001
Common stock shares authorized	200,000,000	200,000,000
Common stock shares issued	49,545,039	31,827,659
Common stock shares outstanding	49,545,039	31,827,659

Stock-Based Compensation Expense - Summary of Restricted Stock Unit Activity (Details)	6 Months Ended
	Jun. 30, 2023 $ / shares shares
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward]
Restricted stock units outstanding, Beginning Balance \| shares	28,212
Restricted stock units outstanding shares, Granted \| shares	270,716
Restricted stock units outstanding shares, Vested \| shares	(7,041)
Restricted stock units outstanding shares, Forfeited \| shares	(48,184)
Restricted stock units outstanding, Ending Balance \| shares	243,703
Weighted Average Grant Date Fair Value, Beginning Balance \| $ / shares	$ 4.78
Weighted Average Grant Date Fair Value, Granted \| $ / shares	2.85
Weighted Average Grant Date Fair Value, Vested \| $ / shares	4.78
Weighted Average Grant Date Fair Value, Forfeited \| $ / shares	2.93
Weighted Average Grant Date Fair Value, Beginning Balance \| $ / shares	$ 3

Subsequent Events

6 Months Ended

Jun. 30, 2023

Subsequent Events [Abstract]

Subsequent Events

10. Subsequent Events

On July 12, 2023, the Company amended its Watertown lease agreement to extend the expiration date of the term of the lease from April 30, 2024 to April 30, 2027 at a base rent equal to $95.67 per rentable square foot per year. Under the terms of the amended lease, the Company no longer has the right to terminate the lease after January 1, 2024.