Annual report pursuant to Section 13 and 15(d)

Fair Value (Tables)

v3.24.1
Fair Value (Tables)
 12 Months Ended
Dec. 31, 2023
Fair Value Disclosures [Abstract]  
Schedule of fair value unobservable level 3 inputs Below is the list of obligations for each relevant transaction as of December 31, 2023 as follows:
Acquisition Milestone Achievement Condition Contingent Consideration Payable
Bayon  
Successful completion of Phase 2 $ 1.0  million
Successful completion of Phase 3 $ 4.0  million
FDA approval $ 1.7  million
Panoptes  
Beginning of Phase 3 $ 4.8  million
FDA approval $ 4.8  million
Jade  
FDA approval $ 2.2  million
After the initial valuation, the Company generally uses its best estimate to measure contingent consideration at each subsequent reporting period using the following unobservable Level 3 inputs:
Valuation Technique Unobservable Inputs December 31, 2023 December 31, 2022
Discounted cash flow Payment discount rate 13.1% 14.7%
Bayon Payment period
2025 - 2027
2023 - 2028
Panoptes Payment period
2026 - 2028
2024 - 2028
Jade Payment period 2027 2026
Bayon Probability of Success for milestone
42% - 71%
17% - 67%
Panoptes Probability of Success for milestone
30% - 33%
17% - 36%
Jade Probability of Success for milestone 56% 56%
Management completed, with the assistance of a third party valuation firm, a quantitative assessment of in-process R&D as of August 31, 2023, the Company's annual impairment test date, which includes the following unobservable Level 3 inputs:
Valuation Technique Unobservable Inputs Input Discount Rate
KIO-101 Relief from Royalty Method Probability of success for next development phase 17% 30%
KIO-104 Multi-Period Excess Earnings Method Probability of success for next development phase
17% to 36%
 25%
KIO-201 Relief from Royalty Method Probability of success for next development phase
17% to 46%
 30%
KIO-301 Multi-Period Excess Earnings Method Probability of success for next development phase
17% to 67%
 25%