0000950170-23-010747 | 6-K | XBRL Viewer

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Cover Page	Mar. 30, 2023
Document Information [Line Items]
Document Type	6-K
Amendment Flag	false
Document Period End Date	Mar. 30, 2023
Entity Registrant Name	Renalytix plc
Entity Central Index Key	0001811115
Current Fiscal Year End Date	--06-30
Entity Address, Address Line One	Finsgate 5-7 Cranwood Street
Entity Address, City or Town	London
Entity Address, Postal Zip Code	EC1V 9EE
Entity Address, Country	GB
Entity File Number	001-39387

CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) - USD ($) $ in Thousands	Dec. 31, 2022	Jun. 30, 2022
Current assets:
Cash and cash equivalents	$ 23,816	$ 41,333
Accounts receivable	820	901
Prepaid expenses and other current assets	1,868	2,445
Note receivable from Kantaro	75	75
Receivable from affiliates	22	0
Total current assets	26,601	44,754
Property and equipment, net	2,295	2,558
Right of use asset	213	0
Investment in VericiDx	1,487	2,744
Investment in Kantaro	0	9
Other Assets	64	0
Total assets	30,660	50,065
Current liabilities:
Accounts payable	2,208	1,376
Accounts payable-related party	1,940	1,083
Accrued expenses and other current liabilities	4,489	3,060
Accrued expenses—related party	931	1,496
Deferred revenue	0	46
Current lease liability	129	0
Convertible notes-current	4,590	4,660
Payable to affiliate—current	0	55
Total current liabilities	14,287	11,776
Convertible notes-noncurrent	7,388	7,682
Noncurrent lease liability	100	0
Total liabilities	21,775	19,458
Commitments and contingencies (Note 10)
Shareholders' equity:
Ordinary shares, 0.0025 par value per share: 79,869,543 shares authorized; 79,869,543 and 74,760,432 shares issued and outstanding at December 31, 2022 and June 30, 2022, respectively	229	228
Additional paid-in capital	165,708	164,012
Accumulated other comprehensive loss	(1,937)	(915)
Accumulated deficit	(155,115)	(132,718)
Total shareholders' equity	8,885	30,607
Total liabilities and shareholders' equity	$ 30,660	$ 50,065

CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) (Parenthetical) - £ / shares	Dec. 31, 2022	Jun. 30, 2022
Statement of Financial Position [Abstract]
Common stock par or stated value per share	£ 0.0025	£ 0.0025
Common stock shares authorized	79,869,543	79,869,543
Common stock shares issued	74,891,844	74,760,432
Common stock shares outstanding	74,891,844	74,760,432

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS (UNAUDITED) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2022	Dec. 31, 2021
Revenue	$ 1,192	$ 845	$ 2,161	$ 1,327
Cost of revenue	711	492	1,407	719
Gross profit	481	353	754	608
Operating expenses:
Research and development	3,326	4,134	7,083	8,132
General and administrative	6,810	10,071	15,060	18,203
Performance of contract liability to affiliate	(7)	(70)	(19)	(131)
Total operating expenses	10,129	14,135	22,124	26,204
Loss from operations	(9,648)	(13,782)	(21,370)	(25,596)
Equity in net (losses) earnings of affiliate	0	37	(9)	37
Foreign currency (loss)/gain, net	(108)	(163)	699	2,140
Fair value adjustment to VericiDx investment	(345)	(1,414)	(1,199)	(2,021)
Fair value adjustment to convertible notes	440	0	(730)	0
Other income, net	97	0	211	12
Net loss before income taxes	(10,444)	(15,322)	(22,398)	(25,428)
Income tax expense	0	0	1	0
Net loss	(10,444)	(15,322)	(22,397)	(25,428)
Other comprehensive income (loss):
Changes in the fair value of the convertible notes through other comprehensive income	(920)	0	(523)	0
Foreign exchange translation adjustment	588	97	(499)	(2,488)
Comprehensive loss	$ (10,776)	$ (15,225)	$ (23,419)	$ (27,916)
Earnings Per Share, Basic	$ (0.14)	$ (0.21)	$ (0.30)	$ (0.35)
Earnings Per Share, Diluted	$ (0.14)	$ (0.21)	$ (0.30)	$ (0.35)
Weighted Average Number of Shares Outstanding, Basic	74,891,844	72,285,941	74,848,278	72,258,372
Weighted Average Number of Shares Outstanding, Diluted	74,891,844	72,285,941	74,848,278	72,258,372

CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (UNAUDITED) - USD ($) $ in Thousands	Total	Common Stock [Member]	Additional Paid-in Capital [Member]	Accumulated Other Comprehensive Income (Loss) [Member]	Accumulated Deficit [Member]
Beginning balance at Jun. 30, 2021	$ 71,461	$ 220	$ 150,407	$ 8,276	$ (87,442)
Beginning balance, Shares at Jun. 30, 2021		72,197,286
Shares issued under the employee share purchase program (Value)	120		120
Shares issued under the employee share purchase program (Shares)		10,920
Exercise of stock options (Value)	86		86
Exercise of stock options (Shares)		32,500
Stock-based compensation expense	997		997
Currency translation adjustments	(2,585)			(2,585)
Net loss	(10,106)				(10,106)
Ending balance at Sep. 30, 2021	59,973	$ 220	151,610	5,691	(97,548)
Ending balance, shares at Sep. 30, 2021		72,240,706
Beginning balance at Jun. 30, 2021	71,461	$ 220	150,407	8,276	(87,442)
Beginning balance, Shares at Jun. 30, 2021		72,197,286
Net loss	(25,428)
Ending balance at Dec. 31, 2021	45,800	$ 220	152,662	5,788	(112,870)
Ending balance, shares at Dec. 31, 2021		72,308,930
Beginning balance at Sep. 30, 2021	59,973	$ 220	151,610	5,691	(97,548)
Beginning balance, Shares at Sep. 30, 2021		72,240,706
Exercise of stock options (Value)	111		111
Exercise of stock options (Shares)		68,224
Stock-based compensation expense	941		941
Currency translation adjustments	97			97
Net loss	(15,322)				(15,322)
Ending balance at Dec. 31, 2021	45,800	$ 220	152,662	5,788	(112,870)
Ending balance, shares at Dec. 31, 2021		72,308,930
Beginning balance at Jun. 30, 2022	30,607	$ 228	164,012	(915)	(132,718)
Beginning balance, Shares at Jun. 30, 2022		74,760,432
Shares issued under the employee share purchase program (Value)	116	$ 1	115
Shares issued under the employee share purchase program (Shares)		131,412
Stock-based compensation expense	763		763
Currency translation adjustments	(1,087)			(1,087)
Changes in the fair value of the convertible notes through other comprehensive income	397			397
Net loss	(11,953)				(11,953)
Ending balance at Sep. 30, 2022	18,843	$ 229	164,890	(1,605)	(144,671)
Ending balance, shares at Sep. 30, 2022		74,891,844
Beginning balance at Jun. 30, 2022	$ 30,607	$ 228	164,012	(915)	(132,718)
Beginning balance, Shares at Jun. 30, 2022		74,760,432
Exercise of stock options (Shares)	0
Net loss	$ (22,397)
Ending balance at Dec. 31, 2022	8,885	$ 229	165,708	(1,937)	(155,115)
Ending balance, shares at Dec. 31, 2022		74,891,844
Beginning balance at Sep. 30, 2022	18,843	$ 229	164,890	(1,605)	(144,671)
Beginning balance, Shares at Sep. 30, 2022		74,891,844
Currency translation adjustments	588			588
Changes in the fair value of the convertible notes through other comprehensive income	(920)			(920)
Net loss	(10,444)				(10,444)
Ending balance at Dec. 31, 2022	$ 8,885	$ 229	$ 165,708	$ (1,937)	$ (155,115)
Ending balance, shares at Dec. 31, 2022		74,891,844

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($) $ in Thousands	6 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Cash flows from operating activities:
Net loss	$ (22,397)	$ (25,428)
Adjustments to reconcile net loss to net cash used in operating activities
Depreciation and amortization	258	226
Share-based compensation	1,584	1,938
Equity in losses (net earnings) of affiliate	9	(37)
Reduction of Kantaro liability	(55)	0
Fair value adjustment to VericiDx investment	1,199	2,021
Unrealized foreign exchange loss (gain)	271	(1,864)
Fair value adjustment to convertible debt	730	0
Non-cash lease expense	52	0
Changes in operating assets and liabilities:
Accounts receivable	81	(229)
Prepaid expenses and other current assets	494	(2,543)
Receivable from affiliates	(22)	(34)
Accounts payable	2,773	(15)
Accounts payable - related party	(1,083)	646
Accrued expenses and other current liabilities	1,367	(304)
Accrued expenses—related party	(566)	1,113
Deferred revenue	(46)	(55)
Payable to affiliate - current	0	(131)
Other liabilities	0	38
Net cash used in operating activities	(15,351)	(24,734)
Cash flows from investing activities:
Purchases of property and equipment	0	(290)
Software development costs	0	(98)
Payment for long term deferred expense	(64)	0
Net cash used in investing activities	(64)	(388)
Cash flows from financing activities:
Payment of convertible notes principal and interest	(1,648)	0
Proceeds from the issuance of ordinary shares under employee share purchase plan	116	120
Proceeds from exercise of stock options	0	197
Net cash (used in) provided by financing activities	(1,532)	317
Effect of exchange rate changes on cash	(570)	(395)
Net (decrease) in cash and cash equivalents	(17,517)	(25,200)
Cash and cash equivalents, beginning of period	41,333	65,128
Cash and cash equivalents, end of period	23,816	39,928
Supplemental noncash investing and financing activities:
Purchase of property and equipment in accounts payable and accrued expenses	$ 0	$ 254

Business and risks

6 Months Ended

Dec. 31, 2022

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Business and risks

1. Business and risks

Renalytix and its wholly-owned subsidiaries, Renalytix AI, Inc. and Renalytix AI Limited, (collectively, “Renalytix”, or the “Company”) is an artificial intelligence-enabled in vitro diagnostics company, focused on optimizing clinical management of kidney disease to drive improved patient outcomes and significantly lower healthcare costs. KidneyIntelX, the Company’s first-in-class diagnostic platform, employs a proprietary artificial intelligence-enabled algorithm that combines diverse data inputs, including validated blood-based biomarkers, inherited genetics and personalized patient data from EHR systems, to generate a unique patient risk score. Additionally, the Company has successfully completed the first stage of a statement of work with AstraZeneca Pharmaceuticals LP (“AstraZeneca”) to conduct a feasibility study to determine the impact of the use of the Company’s KidneyIntelX platform to optimize utilization of various CKD agents. Further, in December 2020 the Company entered into a master service agreement with AstraZeneca for future services of this nature. As a result of the initial success with AstraZeneca the Company plans to pursue further collaborations with pharmaceutical companies and make ‘Pharmaceutical Services Revenue’ a core part of the business going forward with the goal of improving guideline-based standard-of-care for optimal utilization of existing and novel therapeutics using the KidneyIntelX testing platform and proprietary care management software.

In August 2020, the Company created a wholly-owned subsidiary of Renalytix AI plc, Renalytix AI Limited (“Limited”) to facilitate operations in Ireland.

Since inception in March 2018, the Company has focused primarily on organizing and staffing the Company, raising capital, developing the KidneyIntelX platform, conducting clinical validation studies for KidneyIntelX, establishing and protecting its intellectual property portfolio and commercial laboratory operations, pursuing regulatory clearance and developing a reimbursement strategy. The Company has funded its operations primarily through equity and debt financings.

The Company is subject to risks and uncertainties common to early-stage companies in the diagnostics industry, including, but not limited to, ability to secure additional capital to fund operations, compliance with governmental regulations, development by competitors of new technological innovations, dependence on key personnel and protection of proprietary technology. To achieve widespread usage, KidneyIntelX and additional diagnostic products currently under development will require extensive clinical testing and validation prior to regulatory approval and commercialization. These efforts require significant amounts of additional capital, adequate personnel, and infrastructure and extensive compliance-reporting capabilities.

Liquidity and Going Concern

6 Months Ended

Dec. 31, 2022

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Liquidity and Going Concern

2. Liquidity and Going Concern

The Company has incurred recurring losses and negative cash flows from operations since inception and had an accumulated deficit of $155.1 million as of December 31, 2022. The Company anticipates incurring additional losses until such time, if ever, that it can generate significant sales of KidneyIntelX or any future products currently in development. Management believes its cash and cash equivalents of $23.8 million as of December 31, 2022, combined with proceeds from a $20.3 million gross fundraise completed in February 2023, are sufficient to fund the projected operations for at least the next twelve months from the issuance date of these financial statements. Such expectation is based, in part, on the achievement of a certain volume of assumed revenue; however, there is no guarantee we will achieve this amount of revenue during the time period we assume. Management assessed various additional operating cost reduction options that are available to the Company and would be implemented, if assumed levels of revenue are not achieved and additional funding is not obtained.

Substantial additional capital will be necessary to fund the Company's operations, expand its commercial activities and develop other potential diagnostic related products. The Company plans to seek additional funding through public or private equity offerings, debt financings, other collaborations, strategic alliances and licensing arrangements. The Company may not be able to obtain financing on acceptable terms, or at all, and the Company may not be able to enter into strategic alliances or other arrangements on favorable terms, or at all. The terms of any financing may adversely affect the holdings or the rights of the Company’s shareholders. If the Company is unable to obtain funding, the Company could be required to delay, curtail or discontinue research and development programs, product portfolio expansion or future commercialization efforts, which could adversely affect its business prospect.

Basis of presentation and summary of significant accounting policies

6 Months Ended

Dec. 31, 2022

Accounting Policies [Abstract]

Basis of presentation and summary of significant accounting policies

3. Basis of presentation and summary of significant accounting policies

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

In the opinion of management, the accompanying unaudited interim condensed consolidated financial statements include all normal and recurring adjustments (which consist primarily of accruals and estimates that impact the financial statements) considered necessary to present fairly the Company’s financial position as of December 31, 2022 and its results of operations for the three and six months ended December 31, 2022 and 2021 and cash flows for the six months ended December 31, 2022 and 2021. Operating results for the three and six months ended December 31, 2022, are not necessarily indicative of the results that may be expected for the year ending June 30, 2023. The unaudited interim condensed consolidated financial statements, presented herein, do not contain the required disclosures under U.S. GAAP for annual financial statements. The accompanying unaudited interim condensed consolidated financial statements should be read in conjunction with the annual audited consolidated financial statements and related notes as of and for the year ended June 30, 2022.

Principles of consolidation

The unaudited interim condensed consolidated financial statements include the accounts of Renalytix plc, and its wholly-owned subsidiaries, Renalytix AI, Inc. and Renalytix AI Limited. All inter-company balances and transactions have been eliminated in consolidation. The Company accounts for investments in which it has significant influence but not a controlling financial interest using the equity method of accounting.

Use of estimates

The preparation of the consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and reported amounts of expenses during the reporting period. Actual results could differ from those estimates. Due to the uncertainty of factors surrounding the estimates or judgments used in the preparation of the consolidated financial statements, actual results may materially vary from these estimates.

Estimates and assumptions are periodically reviewed, and the effects of revisions are reflected in the consolidated financial statements in the period they are determined to be necessary. Significant areas that require management’s estimate include the assumptions used in determining the fair value of share-based awards, determining the fair value of the bonds, recording the prepaid/accrual and associated expense for research and development activities performed for the Company by third parties, determining useful lives of property and equipment and capitalized software, the assessment of noncontrolling interest and equity method investments.

Segment information

The Company manages its operations as a single operating segment for the purposes of assessing performance and making operating decisions. The Company’s singular focus is to make significant improvements in kidney disease diagnosis and prognosis, clinical care, patient stratification for drug clinical trials, and drug target discovery.

Foreign currency

The Company’s consolidated financial statements are presented in U.S. dollars, the reporting currency of the Company. The functional currency of Renalytix plc and Renalytix AI Limited is GB Pounds. The functional currency of Renalytix AI, Inc. is the U.S. dollar. Assets and liabilities of Renalytix plc and Renalytix AI Limited are translated at the rate of exchange at period-end, while the statements of operations are translated at the weighted average exchange rates in effect during the reporting period. The net effect of these translation adjustments is shown as a component of accumulated other comprehensive income (loss). Transaction gains and losses resulting from exchange rate changes on transactions denominated in currencies other than the functional currency are included in income in the period in which the change occurs and reported in the consolidated statements of operations and comprehensive loss.

Concentrations of credit risk and major customers

Financial instruments that potentially subject the Company to concentrations of credit risk consist principally of cash and accounts receivable balances. Periodically, the Company maintains deposits in accredited financial institutions in excess of federally insured limits. The Company deposits its cash in financial institutions that it believes have high credit quality and are not exposed to any unusual credit risk beyond the normal credit risk associated with commercial banking relationships and has not experienced any losses on such accounts.

The Company’s accounts receivable are derived from revenue earned from customers located in the U.S. For the six months ended December 31, 2022 and 2021 approximately 94% and 99%, respectively, of all receivables were outstanding from two customers, Mount Sinai and AstraZeneca. The remaining receivables were due from other third party payors. The Company performs initial and ongoing credit reviews on customers, which involve consideration of the customers’ financial information, their location, and/or other factors to assess the customers’ ability to pay.

Fair value of financial instruments

At December 31, 2022 and June 30, 2022, the Company’s financial instruments included accounts receivable, prepaid expenses and other current assets, accounts payable and accrued expenses and other current liabilities. The carrying amounts of these assets and liabilities approximates fair value due to their short-term nature. The convertible notes are recorded at their estimated fair value.

Fair value option

Under the Fair Value Option Subsections of ASC subtopic 825-10, Financial Instruments – Overall, the Company has the irrevocable option to report most financial assets and financial liabilities at fair value on an instrument-by-instrument basis, with changes in fair value reported in earnings (see Note 5). The Company has elected to measure and record the convertible notes at their estimated fair value.

Cash and cash equivalents

The Company considers all highly liquid investments purchased with an original maturity of 90 days or less to be cash equivalents. As of December 31, 2022, the Company had a cash balance of $23.8 million. As of June 30, 2022, the Company had a cash balance of $41.3 million.

Accounts receivable

Accounts receivable are recorded at the invoice amount and are non-interest bearing. The Company considers receivables past due based on the contractual payment terms. The Company reserves specific receivables if collectability is no longer reasonably assured. Estimates for allowances for doubtful accounts are determined based on existing contractual obligations, historical payment patterns, and individual customer circumstances. No reserves have been recorded as of December 31, 2022 or June 30, 2022.

Property and equipment

Property and equipment are recorded at cost. Depreciation is determined using the straight-line method over the estimated useful lives ranging from three to ten years. Expenditures for maintenance and repairs are expensed as incurred while renewals and betterments are capitalized. When property and equipment are sold or otherwise disposed of, the cost and related accumulated depreciation are eliminated from the accounts and any resulting gain or loss is reflected in operations.

Leases

Effective July 1, 2022, the Company adopted Accounting Standards Codification (“ASC”), Topic 842, Leases (“ASC 842”), using the required modified retrospective approach and utilizing the effective date as its date of initial application.

At the inception of an arrangement, the Company determines whether the arrangement is or contains a lease based on the unique facts and circumstances present. Most leases with a term greater than one year are recognized on the balance sheet as right-of-use assets, lease liabilities and, if applicable, long-term lease liabilities. The Company has elected not to recognize on the balance sheet, leases with terms of one year or less. Operating lease liabilities and their corresponding right-of-use assets are recorded based on the present value of lease payments over the expected remaining lease term. However, certain adjustments to the right-of-use asset may be required for items such as incentives received, initial direct costs, or prepayments. The interest rate implicit in lease contracts is typically not readily determinable. As a result, the Company utilizes its incremental borrowing rates, which are the rates incurred to borrow on a collateralized basis over a similar term an amount equal to the lease payments in a similar economic environment.

In accordance with the guidance in ASC 842, components of a lease should be split into three categories: lease components (e.g., land, building, etc.), non-lease components (e.g., common area maintenance, consumables, etc.), and non-components (e.g., property taxes, insurance, etc.). Then the fixed and in-substance fixed contract consideration (including any related to non-components) must be allocated based on the respective relative fair values to the lease components and non-lease components.

Upon adoption, the Company did elected the package of practical expedients and the hindsight practical expedient but did not elect the easement practical expedient which is not applicable to the Company as the Company does not have any ground leases. In accordance with the package of practical expedients, the Company has not reassessed any of their existing or expired contracts or any other agreements that were previously concluded to not contain a lease for the following practical expedient guidance: (1) whether the arrangement is or contains a lease, (2) lease classification and (3) whether previously capitalized costs continue to qualify as initial direct costs.

Performance of contract liability to affiliate

In May 2020, the Company and the Icahn School of Medicine at Mount Sinai entered into an operating agreement (“Kantaro Operating Agreement”) to form a joint venture, Kantaro Biosciences LLC (“Kantaro”), for the purpose of developing and commercializing laboratory tests for the detection of antibodies against SARS-CoV-2 originally developed by Mount Sinai. Kantaro has partnered with Bio-Techne Corporation to develop and launch the new test which is designed for use in any authorized clinical testing laboratory without the need for proprietary equipment. During the three and six months ended December 31, 2022, the Company recognized $0.01 million and $0.02 million, respectively, related to the performance of the contract liability with Kantaro. During the three and six months ended December 31, 2021, the Company recognized $0.1 million and $0.1 million, respectively, related to the performance of the contract liability with Kantaro. This represents the allocation of costs for performing services on behalf of Kantaro. On December 31, 2022, the members and managers of Kantaro decided that it was in the best interest of Kantaro to wind up the Kantaro business. As part of the termination agreement, the members agreed that Renalytix has no further liability to perform services on behalf of Kantaro.

Equity method investments

The Company accounts for equity investments where it owns a non-controlling interest, but has the ability to exercise significant influence, under the equity method of accounting. Under the equity method of accounting, the original cost of the investment is adjusted for the Company’s share of equity in the earnings of the equity investee and reduced by dividends and distributions of capital received, unless the fair value option is elected, in which case the investment balance is marked to fair value each reporting period and the impact of changes in fair value of the equity investment are reported in earnings.

Kantaro Biosciences LLC

As the Company can exert significant influence over, but does not control, Kantaro’s operations through voting rights or representation on Kantaro’s board of directors, the Company accounts for this investment using the equity method of accounting. The Company records its share in Kantaro’s earnings and losses in the condensed consolidated statement of operations. The Company assesses its investment for other-than-temporary impairment when events or changes in circumstances indicate that the carrying amount of the investment might not be recoverable and recognize an impairment loss to adjust the investment to its then-current fair value. The Company owned 25% of the membership equity units in Kantaro at December 31, 2022 and June 30, 2022. On December 31, 2022, the members and managers of Kantaro decided that it was in the best interest of Kantaro to wind up the business and unanimously signed a termination agreement. As part of the termination agreement, the members agreed to wind up Kantaro's business and dissolve it promptly after the effective date of the termination agreement.

Impairment assessment

The Company evaluates its investments that are in unrealized loss positions, if any, and equity method investments for other-than-temporary impairment on a quarterly basis (see note 3). Such evaluation involves a variety of considerations, including assessments of the risks and uncertainties associated with general economic conditions and distinct conditions affecting specific issuers or investees. Factors considered by the Company include (i) the length of time and the extent to which an investment’s fair value has been below its cost; (ii) the financial condition, credit worthiness, and near-term prospects of the issuer; (iii) the length of time to maturity; (iv) future economic conditions and market forecasts; (v) the Company’s intent and ability to retain its investment for a period of time sufficient to allow for recovery of market value; (vi) an assessment of whether it is more likely than not that the Company will be required to sell its investment before recovery of market value; and (vii) whether events or changes in circumstances indicate that the investment’s carrying amount might not be recoverable.

Software development costs

The Company follows the provisions of ASC 985, Software, which requires software development costs for software to be marketed externally to be expensed as incurred until the establishment of technological feasibility, at which time those costs are capitalized until the software is available for general release and amortized over its estimated useful life of ten years. Technological feasibility is established upon the completion of a working model that has been validated.

Revenue recognition

The Company accounts for revenue under ASC 606 – Revenue from Contracts with Customers (“ASC 606”). Pursuant to ASC 606, the Company recognizes revenue when a customer obtains control of promised goods or services. The Company records the amount of revenue that reflects the consideration that it expects to receive in exchange for those goods or services. The Company applies the following five-step model in order to determine this amount: (i) identification of the promised goods or services in the contract; (ii) determination of whether the promised goods or services are performance obligations, including whether they are distinct in the context of the contract; (iii) measurement of the transaction price, including the constraint on variable consideration; (iv) allocation of the transaction price to the performance obligations; and (v) recognition of revenue when (or as) the Company satisfies each performance obligation.

The Company only applies the five-step model to contracts when it is probable that it will collect the consideration to which it is entitled in exchange for the goods or services that it transfers to the customer. Once a contract is determined to be within the scope of ASC 606 at contract inception, the Company reviews the contract to determine which performance obligations it must deliver and which of these performance obligations are distinct. Certain contracts have options for the customer to acquire additional services. The Company evaluates these options to determine if a material right exists. If, after that evaluation, it determines a material right does exist, it assigns value to the material right based upon the renewal option approach. The Company recognizes as revenue the amount of the transaction price that is allocated to each performance obligation when that performance obligation is satisfied or as it is satisfied. The Company uses present right to payment and customer acceptance as indicators to determine the transfer of control to the customer occurs at a point in time. Sales tax and other similar taxes are excluded from revenues.

Cost of revenue

Cost of revenue consists of costs directly attributable to the services rendered, including labor costs and lab consumables directly related to revenue generating activities.

Research and development expenses

Research and development costs consist primarily of costs incurred in connection with the development of KidneyIntelX and other studies for KidneyIntelX to determine clinical value and performance in different CKD populations. Research and development costs are expensed as incurred.

Share-based compensation

The Company measures equity classified share-based awards granted to employees and nonemployees based on the estimated fair value on the date of grant and recognizes compensation expense of those awards over the requisite service period, which is the vesting period of the respective award. Restricted stock units are measured at the fair value of our American Depository Shares on the date of grant. The Company accounts for forfeitures as they occur. For share-based awards with service-based vesting conditions, the Company recognizes compensation expense on a straight-line basis over the service period. The fair value of each stock option grant is estimated on the date of grant using the Black-Scholes option-pricing model, which requires inputs based on certain subjective assumptions, including the expected stock price volatility, the expected term of the option, the risk-free interest rate for a period that approximates the expected term of the option, and the Company’s expected dividend yield. The Company was a privately-held organization prior to November 2018 and has been a publicly-traded company for a limited period of time and therefore lacks company-specific historical and implied volatility information for its shares. Therefore, it estimates its expected share price volatility based on the historical volatility of publicly-traded peer companies and expects to continue to do so until such time as it has adequate historical data regarding the volatility of its own traded share price. The expected term of the Company’s stock options has been determined utilizing the “simplified” method for awards that qualify as “plain-vanilla” options. The risk-free interest rate is determined by reference to the U.S. Treasury yield curve in effect at the time of grant of the award for time periods approximately equal to the expected term of the award. Expected dividend yield is none based on the fact that the Company has never paid cash dividends on ordinary shares and does not expect to pay any cash dividends in the foreseeable future.

The Company classifies share-based compensation expense in its condensed consolidated statement of operations and comprehensive loss in the same manner in which the award recipient’s payroll costs are classified or in which the award recipient’s service payments are classified.

Income taxes

Income taxes are accounted for under the asset and liability method as required by FASB ASC Topic 740, Income Taxes (ASC 740). Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. A reduction in the carrying value of the deferred tax assets is required when it is not more likely than not that such deferred tax assets are realizable.

FASB ASC Subtopic 740-10, Accounting for Uncertainty of Income Taxes(ASC 740-10), defines the criterion an individual tax position must meet for any part of the benefit of the tax position to be recognized in financial statements prepared in conformity with U.S. GAAP. The Company may recognize the tax benefit from an uncertain tax position only if it is more likely than not such tax position will be sustained on examination by the taxing authorities, based solely on the technical merits of the respective tax position. The tax benefits recognized in the financial statements from such a tax position should be measured based on the largest benefit having a greater than 50% likelihood of being realized upon ultimate settlement with the tax authority. In accordance with disclosure requirements of ASC 740-10, the Company’s policy on income statement classification of interest and penalties related to income tax obligations is to include such items as part of income tax expense.

Comprehensive loss

Comprehensive loss includes net loss as well as other changes in shareholders’ equity that result from transactions and economic events other than those with shareholders. For the periods presented changes in shareholders’ equity includes foreign currency translation as well as changes in fair value of the convertible note due to changes in instrument specific credit risk. The change in instrument specific credit risk was calculated as the change in the risk yield from the convertible debt issuance date to the valuation date. The instrument specific credit risk at issuance date was calibrated such that the fair value of the convertible bond was equal to the issue price as of the issuance date. The risk yield was adjusted to reflect the change in credit spreads between the issuance date and the valuation date.

Net loss per ordinary share

The dilutive effect of convertible securities is calculated using the if-converted method. Under the if-converted method, interest charges applicable to the convertible debt as well as nondiscretionary adjustments which include any expenses or charges that are determined based on the income (loss) for the period are added back to net income. The convertible debt is assumed to have been converted at the beginning of the period (or at time of issuance, if later).

For the quarter ended December 31, 2022, the diluted and basic net loss per share calculation excluded 4,977,699 shares related to stock options, as the exercise price of these options was greater than their market value. Therefore, the weighted average number of shares used to calculate both basic and diluted net loss per share are the same.

Emerging growth company

The Company is an emerging growth company as defined in the Jumpstart Our Business Startups Act of 2012, as amended (the “JOBS Act”). Under the JOBS Act, companies have extended transition periods available for complying with new or revised accounting standards. The Company has elected to avail itself of this exemption and, therefore, while the Company is an emerging growth company it will not be subject to new or revised accounting standards at the same time that they become applicable to other public emerging growth companies that have not elected to avail themselves of this exemption.

Recently issued accounting pronouncements

In June 2016, the FASB issued ASU 2016-13, Financial Instruments—Credit Losses: Measurement of Credit Losses on Financial Instruments, which requires measurement and recognition of expected credit losses for financial assets held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. This is different from the current guidance as this will require immediate recognition of estimated credit losses expected to occur over the remaining life of many financial assets. The new guidance will be effective for the Company on July 1, 2023. The Company is currently evaluating the impact of adopting this guidance to its consolidated financial statements.

In August 2020, the FASB issued ASU 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 (“ASU2020-06”). ASU 2020-06 eliminates two of the three models in ASC 470-20 that require issuers to separately account for embedded conversion features and eliminates some of the requirements for equity classification in ASC 815-40-25 for contracts in an entity’s own equity. The guidance also requires entities to use the if-converted method for all convertible instruments in the diluted earnings per share calculation and generally requires them to include the effect of potential share settlement for instruments that may be settled in cash or shares. It is effective for annual periods beginning after December 15, 2023, and interim periods therein. The Company evaluated the effect ASU 2020-06 and it is not expected to have a material impact on the consolidated financial statements.

Revenue

6 Months Ended

Dec. 31, 2022

Revenue from Contract with Customer [Abstract]

Revenue

4. Revenue

Testing services revenue

Testing services revenue is generated from the KidneyIntelX platform, which provides analytical services to customers. Each individual test is a performance obligation that is satisfied at a point in time upon completion of the testing process (when results are reported) which is when control passes to the customer and revenue is recognized. During the three and six months ended December 31, 2022, the Company recognized $1.0 million and $2.0 million, respectively of testing services revenue. Sales tax and other similar taxes are excluded from revenues. During the three and six months ended December 31, 2021, the Company recognized $0.7 million and $1.1 million, respectively of testing services revenue.

Pharmaceutical services revenue

Pharmaceutical services revenue is generated from the provision of analytical services to customers. Contracts with customers generally include an initial upfront payment and additional payments upon achieving performance milestones. The Company uses present right to payment and customer acceptance as indicators to determine the transfer of control to the customer which may occur at a point in time or over time depending on the individual contract terms. Sales tax and other similar taxes are excluded from revenues.

During the three and six months ended December 31, 2022, the Company recognized $0.2 million and $0.2 million, respectively, of pharmaceutical services revenue where performance obligations are satisfied over time. During the three and six months ended December 31, 2021 Company recognized $0.2 million and $0.2 million, respectively, of pharmaceutical services revenue where performance obligations are satisfied over time.

Professional services revenue

Professional services revenue consists of services related to the creation of a branded care navigation portal/pathway for use with KidneyIntelX. Revenue is recognized when control of the promised services is transferred to customers and the performance obligation is fulfilled in an amount that reflects the consideration that the Company expects to be entitled in exchange for those services.

The Company did not recognize any professional services revenue during the three and six months ended December 31, 2022 or during the three and six months ended December 31, 2021.

Deferred revenue

Deferred revenue represents the allocated transaction price to the material right which will be recognized as revenue when the renewal options are exercised which is expected to occur over the next few months.

The following table summarizes the changes in deferred revenue:


(in thousands)	December 31, 2022			June 30, 2022
Balance, beginning of period	$	46		$	122
Deferral of revenue		—			67
Revenue recognized		(46	)		(143	)
Balance, end of period	$	—		$	46

- Definition

The entire disclosure of revenue from contract with customer to transfer good or service and to transfer nonfinancial asset. Includes, but is not limited to, disaggregation of revenue, credit loss recognized from contract with customer, judgment and change in judgment related to contract with customer, and asset recognized from cost incurred to obtain or fulfill contract with customer. Excludes insurance and lease contracts.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-URI https://asc.fasb.org/topic&trid=49130388

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 10
-URI https://asc.fasb.org/extlink&oid=126920106&loc=SL49130551-203045

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 13
-Subparagraph (b)(2)
-URI https://asc.fasb.org/extlink&oid=126920106&loc=SL49130556-203045

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (b)
-URI https://asc.fasb.org/extlink&oid=126920106&loc=SL49130554-203045

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 9
-URI https://asc.fasb.org/extlink&oid=126920106&loc=SL49130550-203045

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (e)
-URI https://asc.fasb.org/extlink&oid=126920106&loc=SL49130554-203045

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (a)
-URI https://asc.fasb.org/extlink&oid=126920106&loc=SL49130554-203045

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (d)
-URI https://asc.fasb.org/extlink&oid=126920106&loc=SL49130554-203045

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 15
-URI https://asc.fasb.org/extlink&oid=126920106&loc=SL49130558-203045

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (c)
-URI https://asc.fasb.org/extlink&oid=126920106&loc=SL49130554-203045

+ Details

Fair value measurements and the fair value option

6 Months Ended

Dec. 31, 2022

Fair Value Disclosures [Abstract]

Fair value measurements and the fair value option

5. Fair value measurements and the fair value option

Assets and liabilities recorded at fair value on a recurring basis in the condensed consolidated balance sheets are categorized based upon the level of judgment associated with the inputs used to measure their fair values. Fair value is defined as the exchange price that would be received for an asset or an exit price that would be paid to transfer a liability 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 authoritative guidance on fair value measurements establishes a three-tier fair value hierarchy for disclosure of fair value measurements as follows:

•

Level 1 - Quoted prices (unadjusted in active markets for identical assets or liabilities)

•

Level 2 - Inputs other than quoted prices in active markets that are observable either directly or indirectly

•

Level 3 - Unobservable inputs in which there is little or no market data, which require the Company to develop its own assumptions

This hierarchy requires the use of observable market data when available and to minimize the use of unobservable inputs when determining fair value. The following fair value hierarchy table presents information about the Company’s assets measured at fair value on a recurring basis:


	Fair value measurement at
	reporting date using
(in thousands)	(Level 1)		(Level 2)		(Level 3)
December 31, 2022
Assets:
Available for sale securities	$	1,487	$	—	$	—
Liabilities:
Convertible notes	$	—	$	—	$	11,978
June 30, 2022
Assets:
Available for sale securities	$	2,744	$	—	$	—
Liabilities:
Convertible notes	$	—	$	—	$	12,342

As further described in Note 8, in April 2022 the Company issued convertible promissory notes (the “Notes”) to various investors. The fair value option, as prescribed by ASC 815, Derivatives and Hedging, was elected and applied in connection with the preparation of these consolidated financial statements. The fair value of the Notes is determined using a scenario-based analysis that estimates the fair value based on the probability-weighted present value of expected future investment returns, considering each of the possible outcomes available to the noteholders.

The Company adjusts the carrying value of the Notes to their estimated fair value at each reporting date, with qualifying increases or decreases in the fair value recorded as change in fair value of convertible promissory notes in the statements of operations and comprehensive loss. Changes in the fair value resulting from changes in the instrument-specific credit risk will be presented separately in other comprehensive income.


(in thousands)	December 31, 2022
Balance at July 1, 2022	$	12,342
Change due to payment of principal and interest	$	(1,629	)
Change in credit risk	$	523
Change in time to maturity, stock price and Risk-Free Rates	$	730
FX Impact	$	12
Balance at December 31, 2022	$	11,978

Non-financial assets and liabilities

The Company’s non-financial assets, which primarily consist of property and equipment and equity method investments, are not required to be measured at fair value on a recurring basis, and instead are reported at carrying value in its condensed consolidated balance sheet. However, on a periodic basis or whenever events or changes in circumstances indicate that they may not be fully recoverable, the respective carrying value of non-financial assets are assessed for impairment and, if ultimately considered impaired, are adjusted and written down to their fair value, as estimated based on consideration of external market participant assumptions.

- 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

Property and equipment

6 Months Ended

Dec. 31, 2022

Property, Plant and Equipment [Abstract]

Property and equipment

6. Property and equipment

Property and equipment consists of (in thousands):


(in thousands)	December 31, 2022			June 30, 2022
Lab equipment	$	1,142		$	1,143
Software		1,473			1,476
Office equipment		124			124
Office furniture		35			35
Leasehold improvements		576			576
Total		3,350			3,354
Less accumulated depreciation and amortization		(1,055	)		(796	)
	$	2,295		$	2,558

Depreciation expense was $0.1 million and $0.2 million for the three and six months ended December 31, 2022, respectively. Depreciation expense was $0.1 million and $0.2 million for the three and six months ended December 31, 2021, respectively.

As of December 31, 2022 there was $1.1 million of unamortized capitalized software development costs. Amortization expense related to capitalized software development costs was $0.1 million and $0.1 million, respectively for the three and six months ended December 31, 2022 and $0.02 million and $0.1 million, respectively for the three and six months ended December 31, 2021.

As of December 31, 2022, the expected amortization expense for software for the next five years and thereafter is as follows:


(in thousands)
2023	$	89
2024		178
2025		178
2026		132
2027		120
Thereafter		432
	$	1,129

Accrued expenses and other current liabilities

6 Months Ended

Dec. 31, 2022

Accounts Payable and Accrued Liabilities, Current [Abstract]

Accrued expenses and other current liabilities

7. Accrued expenses and other current liabilities

Accrued expenses and other current liabilities consisted of (in thousands):


	December 31, 2022		June 30, 2022
Consulting and professional fees	$	218	$	551
Research and development		1,058		1,060
Payroll and related benefits		2,867		1,437
License Expense		315		—
Other		31		12
	$	4,489	$	3,060

Convertible Notes

6 Months Ended

Dec. 31, 2022

Debt Disclosure [Abstract]

Convertible Notes

8. Convertible Notes

In April 2022, the Company issued amortizing senior convertible bonds with a principal amount $21.2 million in amortizing senior convertible bonds due in April 2027 (the "Bonds"). The Bonds were issued at 85% par value with total net proceeds of $18.0 million and accrue interest at an annual rate of 5.5%, payable quarterly in arrears, in cash or ADSs valued at the ADS Settlement Price at the option of the Company. The principal and interest payments are due in equal quarterly installments starting in July 2022. The Bonds contain various conversion and redemption features. The initial conversion price for the Convertible Bonds of $8.70 has been set at a 20 per cent. premium to the Reference ADS Price. The Conversion Price may reset down at 12, 24 and 36 months, depending on share price performance and save in limited circumstances, the Bonds have a hard floor in the conversion price of $7.25. Between amortization dates, the Convertible Bond Investor retains the right to advance future amortization payments, provided that (a) there shall be no amortization advancements during the first 12 months, (b) no more than 2 amortization advancements may occur in any 12 month period, and (c) no more than 1 amortization advancement may occur in any 3 month period.

The Convertible Bond Investor is also permitted to defer up to two amortization payments to a subsequent amortization date. The Company retains the option to repay any deferred amortization in cash at 100 per cent. of the nominal amount In July 2022, the Company made a cash amortization payment of $1.4 million, which consisted of $1.1 million of principal and $0.3 million of interest. In October 2022, the company made an interest payment of $0.3 million. As of December 31, 2022, $20.1 million of principal was outstanding.

On issuance, the Company elected to account for the Bonds at fair value in accordance with ASC 815, Derivatives and Hedging, with qualifying changes in fair value being recognized through the statements of operations until the Bonds are settled. Changes in fair value related to instrument-specific credit risk are recognized through comprehensive loss until the Bonds are settled. The fair value of the bonds is determined using a scenario-based analysis that estimates the fair value based on the probability-weighted present value of expected future investment returns, considering each of the possible outcomes available to the noteholders. Significant assumptions used in the fair value analysis include the volatility rate, risk-free rate, dividend yield and risky yield. As of December 31, 2022, the fair value of the Bonds was determined to be $11.9 million. During the three and six months ended December 31, 2022, the Company recognized a change in fair value of the Notes related to the instrument-specific credit risk of $0.9 million and $0.5 million, respectively, in the statement of comprehensive loss. The Company recognized an increase in fair value related to non-instrument specific credit risk of $0.4 million during the three months ended December 31, 2022 and an increase in fair value related to non-instrument specific credit risk of $0.7 million in the consolidated statement of operations during the six months ended December 31, 2022.

Leases

6 Months Ended

Dec. 31, 2022

Lessee Disclosure [Abstract]

Leases

9. Leases

The Company leases certain office space and laboratory space. At the inception of an arrangement, the Company determines whether the arrangement is or contains a lease based on the unique facts and circumstances present. The Company does not recognize right-of-use assets or lease liabilities for leases determined to have a term of 12 months or less. Many of the Company's leases contain variable non-lease components such as maintenance, taxes, insurance, and similar costs for the spaces it occupies.

Variable executory costs, as it relates to net leases, are excluded from the calculation of the lease liability. Variable executory costs include costs relating to utilities, repairs, maintenance, insurance, common area expenses, and taxes paid for the leased asset during its economic life. The Company expenses the variable lease payments in the period in which it incurs the obligation to pay such variable amounts and will be included in variable lease costs in the leases footnote disclosure. These variable lease payments are not included in the Company's calculation of its right-of-use assets or lease liabilities.

Upon adoption of ASC 842, the Company elected the package of practical expedients and the hindsight practical expedient but did not elect the easement practical expedient which is not applicable to the Company as the Company does not have any ground leases. In accordance with the package of practical expedients, the Company has not reassessed any of their existing or expired contracts or any other agreements that were previously concluded to not contain a lease for the following practical expedient guidance: (1) whether the arrangement is or contains a lease, (2) lease classification and (3) whether previously capitalized costs continue to qualify as initial direct costs.

The Company leased lab space in Salt Lake City, UT, under a five-year lease, the term of which commenced in November 2019. The Company has measured its right-of-use assets and lease liabilities based on lease terms ending in October 2024.

The Company leased lab space in New York City, NY under an initial three-month lease, the term of which commenced in February 2019. The Company has classified this lease as a short-term lease as the Company concluded that the noncancelable terms of this lease was less than one year at the commencement and none of the Company's renewals or amendments were for additional noncancelable terms greater than one year.

The Company leased lab space in St. Petersburg, FL from under an initial one-year term, the term of which commenced in January 2022. The Company has classified this lease as a short-term lease as the Company concluded that the noncancelable terms of this lease was less than one year at the commencement and none of the Company's renewals or amendments were for additional noncancelable terms greater than one year.

The Company leased office space in New York City, NY under an initial month-to-month term, the term of which commenced in June 2018. The lease did not have termination or formal renewal options however the Company can renew their spaces if they are still needed and are still available at the end of the term. The Company has classified this lease as a short-term lease as the Company concluded that the noncancelable terms of this lease was less than one year at the commencement and none of the Company's renewals or amendments were for additional noncancelable terms greater than one year.

The Company identified and assessed the following significant assumptions in recognizing its right-of-use assets and corresponding lease liabilities during the adoption of ASC 842:

As the Company's leases do not provide an implicit rate, it estimated the incremental borrowing rate for each lease by considering average interest rates on commercial real estate loans during 2022 which range from 2.2%, for established borrowers with excellent credit ratings, to 18.0%, for borrowers early in the business’ life cycle and with lower credit ratings. As the Company is an early-stage biotech company with minimal revenues, the Company concluded that a 10.0% IBR, the approximate midpoint between the average commercial real estate loans during 2022, is an appropriate discount rate to use for the Utah lease, which was the only lease existing as of the adoption date.

The following table shows the lease balance sheet classification of leases for the quarter ended December 31, 2022 (in thousands):


(in thousands)	December 31, 2022
Assets
Operating lease right-of-use assets, net of accumulated amortization	$	213
Liabilities
Current	$	129
Operating lease liabilities, current
Non-current
Operating lease liabilities, non-current	$	100
Total lease liabilities	$	229

The following table shows the lease costs for the six months ended December 31, 2022 (in thousands):


Lease costs (in thousands)	Statement of operations classification	December 31, 2022
Operating lease costs	Operating expenses: research and development	$	72
Short term lease costs	Operating expenses: research and development	$	8
Short term lease costs	Operating expenses: general and administrative	$	24
Short term lease costs	Cost of goods sold	$	183
Total lease costs		$	287


Other information	December 31, 2022
Cash paid for amounts included in the measurement of lease liabilities (in thousands)	$	72

Remaining lease term - operating leases (in years)		1.9
Discount rate - operating leases		10	%

The future minimum payments for noncancelable leases with terms in excess of one year as of December 31, 2022 are payable as follows (in thousands):


2023	$	84
2024	$	157
2025	$	46
Total	$	287

The Company recognized rent expense of $0.2 million and $0.1 million during the three months ended December 31, 2022 and 2021, respectively, and $0.3 million and $0.2 million during the six months ended December 31, 2022 and 2021, respectively.

Commitments and contingencies

6 Months Ended

Dec. 31, 2022

Commitments and Contingencies Disclosure [Abstract]

Commitments and contingencies

10. Commitments and contingencies

Leases

Lease payments under operating leases as of December 31, 2022 and information about the Company’s lease arrangements are disclosed in Note 9, "Leases".

DaVita Inc.

In January 2021, the Company entered into a Master Care Coordination Services Agreement with DaVita Inc. (“DaVita”) whereby DaVita agreed to provide certain care coordination services to covered patients as requested by the Company ("Care Coordination Services"), with those covered patients identified by the Company’s KidneyIntelX diagnostic and subject to insurance coverage ("Covered Patients"). Those covered patients may also be included in connection with various clinical research studies or quality improvement initiatives (each a “Study”). Both parties agreed to establish a joint steering committee to oversee the care coordination services and exchange and evaluate results of each Study. The Company will pay DaVita a monthly fixed fee based on the number of covered patients. The initial term of the agreement is three years with successive one-year renewals upon written mutual agreement of both parties. For the Care Coordination Services furnished by DaVita (or an affiliate of DaVita) under the terms of a statement of work, the Company shall pay DaVita (or such affiliate of DaVita) a monthly payment of (a) $10.00 in respect of Care Coordination Services multiplied by the number of Covered Patients, plus (b) $3.50, in respect of patient engagement services, multiplied by the number of Covered Patients. No expenses were recorded in the periods related to this agreement.

Employment agreements

The Company has entered into employment agreements with certain key executives providing for compensation and severance in certain circumstances, as set forth in the agreements.

Retirement plans

The Company maintains a defined contribution 401(k) retirement plan which covers all U.S. employees. Employees are eligible after three months of service. Under the 401(k) plan, participating employees may make contributions in an amount up to the limit set by the Internal Revenue Service on an annual basis. The Company has a safe harbor plan and makes contributions to employee accounts of 5% of compensation (as defined by the plan). The Company contributed $0.1 million and $0.2 million for the three and six months ended December 31, 2022, respectively, and $0.1 million and $0.2 million for the three and six months ended December 31, 2021, respectively.

Legal proceedings

The Company is not a party to any litigation and does not have contingency reserves established for any litigation liabilities. At each reporting date, the Company evaluates whether or not a potential loss amount or a potential range of loss is probable and reasonably estimable under the provisions of the authoritative guidance that addresses accounting for contingencies.

License and services agreements

6 Months Ended

Dec. 31, 2022

Goodwill and Intangible Assets Disclosure [Abstract]

License and services agreements

11. License and services agreements

Mount Sinai license and sponsored research agreements

On May 30, 2018, the Company entered into an exclusive license agreement (the “ISMMS License Agreement”) and, on March 7, 2019, a sponsored research agreement (the “ISMMS SRA”) with Mount Sinai. Under the terms of the ISMMS License Agreement, ISMMS granted the Company (i) an exclusive, sublicensable license to use certain patent rights covering specific inventions concerning the utilization of biomarkers guided artificial intelligence techniques for detecting kidney functional decline (the “ISMMS Technology”), (ii) a non-exclusive license under unregistered licensed copyrights and licensed know-how and (iii) an exclusive option to obtain licensed technology conceived after May 30, 2018. The Company is obligated to pay Mount Sinai $1.5 million and $7.5 million in commercial milestone payments upon achieving worldwide net sales of KidneyIntelX of $50.0 million and $300.0 million, respectively. The Company is also obligated to pay Mount Sinai a 4% to 5% royalty on net sales of KidneyIntelX, subject to customary reductions. Royalties are payable on a product-by-product basis from first commercial sale of such product until the later of (1) expiration of the last valid claim of a licensed patent covering such product or (2) on a country-by-country basis, 12 years from first commercial sale of such product in such country. Moreover, the Company is obligated to pay Mount Sinai between 15% and 25% of any consideration received from a sublicensee.

As part of the ISMMS SRA, the Company has agreed to fund several research projects to further develop the ISMMS Technology. The Company incurred $0.0 million and $0.8 million under the ISMMS SRA for the three and six months ended December 31, 2022 , respectively, and $0.2 million and $0.4 million in research and development expenses under the ISMMS SRA for the three and six months ended December 31, 2021, respectively.

Mount Sinai clinical trial agreement

In July 2021, the Company entered into a Clinical Trial Agreement (the "CTA") with ISMMS. Under the CTA, ISMMS will undertake a sponsored clinical trial entitled, “A prospective decision impact trial of KidneyIntelX in patients with Type 2 diabetes and existing chronic kidney disease”. The clinical trial is to be conducted at ISMMS with Renalytix agreeing to pay ISMMS is accordance with the agreed upon budget. The clinical trial is expected to last up to four years with a total estimated budget of $3.2 million. As of December 31, 2022, amounts due to ISMMS under the CTA totaled $0.2 million and $0.0 million $0.1 million was expensed during the three and six months ended December 31, 2022, respectively.

Joslin diabetes center agreement

In October 2018, the Company purchased a worldwide exclusive license agreement (the “Joslin Agreement”) with the Joslin Diabetes Center, Inc. (“Joslin”) that was previously entered into with EKF Diagnostics Holding Plc (“EKF”), a related party, in July 2017. The license agreement provides the Company with the right to develop and commercialize licensed products covering a novel methodology of diagnosing and predicting kidney disease using certain biomarkers (the “Joslin Diabetes Technology”).

Under the terms of the Joslin Agreement, the Company is obligated to pay Joslin aggregate commercial milestone payments of $0.3 million and $1.0 million in commercial milestone payments upon achieving worldwide net sales of licensed products and processes of $2.0 million and $10.0 million, respectively. The Company accrued for the $0.3 million milestone payment as the Company achieved $2.0 million of worldwide net sales in the calendar year. The Company is also obligated to pay Joslin a 5% royalty on net sales of any licensed products or licensed processes, subject to customary reductions. The Company accrued $0.3 million of royalties due to Joslin for the quarter ended December 31, 2022. Moreover, the Company is obligated to pay Joslin 25% of any consideration received from a sublicensee.

The Joslin Agreement initially expires on July 31, 2025 and is subject to an automatic five-year extension unless either party notifies the other party of its intent not to extend the agreement at least 180 days prior to initial expiration. Either party may terminate the Joslin Agreement earlier upon an uncured material breach of the agreement by the other party, the insolvency of the other party, or in the event the other party is unable to perform its obligations under the agreement for a specified period. Additionally, Joslin may terminate the agreement in the event that the Company ceases developing or commercializing licensed products or processes, if the Company fails to maintain certain required insurance policies, and if the Company fails to pay patent expenses related to the licensed patents.

Shareholders' equity

6 Months Ended

Dec. 31, 2022

Stockholders' Equity Note [Abstract]

Shareholders' equity

12. Shareholders’ equity

Ordinary shares

As of December 31, 2022, the Company had 79,869,543 ordinary shares authorized on a fully diluted basis. Each share entitles the holder to one vote on all matters submitted to a vote of the Company’s shareholders. Ordinary shareholders are entitled to receive dividends as may be declared by the board of directors. From inception through December 31, 2022, no cash dividends have been declared or paid.

- Definition

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.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
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-Name Accounting Standards Codification
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Reference 2: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 13
-Subparagraph (b)
-URI https://asc.fasb.org/extlink&oid=126973232&loc=SL123496158-112644

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
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Reference 4: http://www.xbrl.org/2003/role/disclosureRef
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Reference 5: http://www.xbrl.org/2003/role/disclosureRef
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Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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-Subparagraph (SX 210.3-04)
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Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
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Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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Reference 9: http://www.xbrl.org/2003/role/disclosureRef
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Reference 10: http://www.xbrl.org/2003/role/disclosureRef
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Reference 12: http://www.xbrl.org/2003/role/disclosureRef
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Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
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Reference 14: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
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Reference 15: http://www.xbrl.org/2003/role/disclosureRef
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Reference 16: http://www.xbrl.org/2003/role/disclosureRef
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+ Details

Share-based compensation

6 Months Ended

Dec. 31, 2022

Share-based Payment Arrangement [Abstract]

Share-based compensation

13. Share-based compensation

Equity Incentive Plans

In November 2018, Company established the Renalytix plc Share Option Plan (the “Plan”) and a U.S. Sub-Plan and Non-Employee Sub-Plan. The Plans provide for the Company to grant options, restricted share awards and other share-based awards to employees, directors and consultants of the Company. As of December 31, 2022, there were 10,739,229 shares available for future issuance under the Plans.

The Plans are administered by the board of directors. The exercise prices, vesting and other restrictions are determined at their discretion, except that all options granted have exercise prices equal to the fair value of the underlying ordinary shares on the date of the grant and the term of stock option may not be greater than ten years from the grant date.

The options granted as of December 31, 2022 consist of 2,299,799 options which vest equally over twelve quarters following the grant date, 962,600 options which vest 25% on the one year anniversary and equally over twelve quarters following the one year anniversary and 500,000 which vest 1/12th immediately and the remainder equally over the remaining eleven quarters, 475,300 which vest 25% on the one year anniversary, 50% on 2nd anniversary and 25% on the third anniversary and 40,000 which vest in eight equal quarterly instalments commencing on the Vesting Commencement date. If options remain unexercised after the date one day before the tenth anniversary of grant, the options expire. On termination of employment, any options that remain unexercised are either forfeited immediately or after a delayed expiration period, depending on the circumstances of termination. Upon the exercise of awards, new ordinary shares are issued by the Company.

The Company recorded share-based compensation expense in the following expense categories in the condensed consolidated statements of operations for the three and six months ended December 31, 2022 and 2021 (in thousands):


	Three months ended December 31,				Six Months Ended December 31,
	2022		2021		2022		2021
Research and development	$	113	$	121	$	180	$	394
General and administrative		700		792		1,396		599
Cost of revenue		2		—		2		—
	$	815	$	913	$	1,578	$	993

The fair value of options is estimated using the Black-Scholes option pricing model, which takes into account inputs such as the exercise price, the value of the underlying ordinary shares at the grant date, expected term, expected volatility, risk-free interest rate and dividend yield. The fair value of each grant of options during the three months ended December 31, 2022 and 2021 were determined using the methods and assumptions discussed below.

The expected term of employee options is determined using the “simplified” method, as prescribed in SEC’s Staff Accounting Bulletin No. 107, whereby the expected life equals the arithmetic average of the vesting term and the original contractual term of the option due to the Company’s lack of sufficient historical data.

The expected volatility is based on historical volatility of the publicly-traded common stock of a peer group of companies.

The risk-free interest rate is based on the interest rate payable on U.S. Treasury securities in effect at the time of grant for a period that is commensurate with the assumed expected term.

The expected dividend yield is none because the Company has not historically paid and does not expect for the foreseeable future to pay a dividend on its ordinary shares.

For the three months ended December 31, 2022 and 2021, the grant date fair value of all option grants was estimated at the time of grant using the Black-Scholes option-pricing model using the following weighted average assumptions:


	Six Months Ended December 31,
	2022			2021
Expected term (in years)		6.1		6.04
Expected volatility		66.9	%		65.8	%
Risk-free rate		3.2	%		1.28	%
Dividend yield		—	%		—	%

The weighted average fair value of the options granted during the six months ended December 31, 2022 was $1.16. The weighted average fair value of the options granted during the six months ended December 31, 2021 was $7.10 per share.

The following table summarizes the stock option granted to employees and non-employees for the six months ended December 31, 2022:


	Number of shares under option plan			Weighted- average exercise price per option		Weighted- average remaining contractual life (in years)
Outstanding at June 30, 2022		4,599,899		$	4.00		8.1
Granted		555,300		$	1.50
Exercised		—
Forfeited		(177,500	)	$	8.43
Outstanding at December 31, 2022		4,977,699		$	3.56		7.2
Exercisable at December 31, 2022		3,721,211		$	3.21		6.6
Vested and expected to vest at December 31, 2022		4,977,699		$	3.56		7.2

As of December 31, 2022, there was $3.8 million in unrecognized compensation cost related to unvested options that will be recognized as expense over a weighted average period of 2.15 years. The aggregate intrinsic value of options outstanding and options exercisable at December 31, 2022 and 2021 was $0.0 million and $18.0 million, respectively.

Employee Share Purchase Plan

The Company’s 2020 Employee Share Purchase Plan (the “ESPP”) became effective on August 17, 2020. The ESPP authorizes the issuance of up to 850,000 shares of the Company’s common stock. The number of shares of the Company’s common stock that may be issued pursuant to rights granted under the ESPP shall automatically increase on January 1st of each year, commencing on January 1, 2021 and continuing for ten years, in an amount equal to the lesser of one percent of the total number of shares of the Company’s common stock outstanding on December 31st of the preceding calendar year, and 2,000,000 ordinary shares, subject to the discretion of the board of directors or remuneration committee to determine a lesser number of shares shall be added for such year.

Under the ESPP, eligible employees can purchase the Company’s common stock through accumulated payroll deductions at such times as are established by the board of directors or remuneration committee. Eligible employees may purchase the Company’s common stock at 85% of the lower of the fair market value of the Company’s common stock on the first day of the offering period or on the purchase date. Eligible employees may contribute up to 15% of their eligible compensation. Under the ESPP, a participant may not purchase more than $25,000 worth of the Company’s common stock for each calendar year in which such rights are outstanding. During the six months ended December 31, 2022, 131,412 shares were purchased under the ESPP.

In accordance with the guidance in ASC 718-50 – Compensation – Stock Compensation, the ability to purchase shares of the Company’s common stock at 85% of the lower of the price on the first day of the offering period or the last day of the offering period (i.e. the purchase date) represents an option and, therefore, the ESPP is a compensatory plan under this guidance. Accordingly, share-based compensation expense is determined based on the option’s grant-date fair value as estimated by applying the Black Scholes option-pricing model and is recognized over the withholding period. The Company recognized share-based compensation expense of $0.02 million and $0.05 million three and six months ended December 31, 2022, respectively, and $0.02 million and $0.05 million during the three and six months ended December 31, 2021, respectively, related to the ESPP.

Restricted Stock Units

Activity for restricted stock units for the six months ended December 31, 2022 is as follows:


	Number of Restricted Stock Units			Weighted- average Grant Date Fair Value
Non-vested balance at June 30, 2022		—		$	-
Granted		131,380		$	1.53
Vested		(41,400	)	$	1.44
Forfeited		—		$	-
Non-vested balance at December 31, 2022		89,980		$	1.57

The total fair value of restricted stock units and performance stock units vested during the six months ended December 31, 2022 was $0.06 million. There were no vested restricted stock units at December 31, 2021. Restricted stock units vest upon the achievement of time-based service requirements.

At December 31, 2022, total unrecognized compensation expense related to non-vested restricted stock units was approximately $0.1 million. Unrecognized compensation expense relating to restricted stock units that are deemed probably of vesting is expected to be recognized over a weighted-average period of approximately 1.2 years.

Related-party transactions

6 Months Ended

Dec. 31, 2022

Related-party transactions

14. Related-party transactions

EKF Diagnostic Holdings

During the three and six months ended December 31, 2022, the Company incurred expenses of $0.03 million and $0.05 million, respectively, related to employees of EKF who provided services to Renalytix and this amount is included in general and administrative expenses in the condensed consolidated statements of operations. During the three and six months ended December 31, 2021, the Company incurred expenses of $0.05 million and $0.1 million, respectively, related to employees of EKF who provided services to Renalytix and this amount is included in general and administrative expenses in the condensed consolidated statements of operations.

Icahn School of Medicine at Mount Sinai

In May 2018, the Company secured its cornerstone license agreement with the Icahn School of Medicine at Mount Sinai ("ISMMS") for research and clinical study work and intended commercialization by the Company (see Note 11). As part of the collaboration, ISMMS became a shareholder in the Company and has subsequently made equity investments both in the Company’s IPO on AIM in November 2018, the subsequent sale of ordinary shares in July 2019 and the Company’s IPO on Nasdaq in July 2020. As of December 31, 2022, amounts due to ISMMS totaled $4.0 million and are included within accrued expenses and other current liabilities and accounts payable on the balance sheet. During the three and six months ended December 31, 2022, the Company incurred expenses of $0.0 million and $1.4 million, respectively, which are included in research and development expenses in the condensed consolidated statement of operations. During the three and six months ended December 31, 2021, the Company incurred expenses of $1.5 million and $2.7, respectively, million which are included in research and development expenses in the condensed consolidated statement of operations.

Kantaro Biosciences LLC

In connection with the formation of Kantaro, the Company entered into a five-year Advisory Services Agreement (“Advisory Agreement”) pursuant to which the Company has agreed to provide certain advisory services to Kantaro. Pursuant to the Kantaro Operating Agreement, Kantaro issued 750 Class A Units to Mount Sinai in exchange for Mount Sinai granting licenses to Kantaro under certain intellectual property rights of Mount Sinai and 250 Class A Units to the Company as the sole consideration for the services to be rendered by the Company under the Advisory Agreement. A portion of the Company’s units are subject to forfeiture if, prior to December 31, 2021, Kantaro terminates the Advisory Agreement as a result of an uncured material breach of the Advisory Agreement or in the event the Company is acquired by a hospital or health system that serves all or any portion of the service areas served by Mount Sinai. The Company determined the fair value of the services to be provided under the Advisory Agreement was $2.0 million and the fair value of the Class A units received from Kantaro was $2.0 million. Fair value was determined using discounted cash flows which is a Level 3 measurement in the fair value hierarchy. The method requires several judgments and assumptions which include discount rates and future cash flows, among others. As a result of the prior year impairment charge discussed in Note 3, the carrying value of the Kantaro investment was written down to zero.

A contributing factor to the impairment consideration for Kantaro was lower forecasted sales volume and consequently, a lower time commitment from Renalytix employees. Based on these circumstances, the Company adjusted the liability to perform services to Kantaro under the Advisory Agreement during the year ended June 30, 2021. On December 31, 2022, the members and managers of Kantaro decided that it was in the best interest of Kantaro to wind up the business and unanimously signed a termination agreement. As part of the termination agreement, the members agreed to wind up Kantaro's business and dissolve it reasonably promptly after the effective date of the termination agreement. As of December 31, 2022, the total liability associated with the services was $0.0, as the termination agreement relieved Renalytix of its obligation to provide services to Kantaro.

For the three and six months ended December 31, 2022, the Company recognized $0.01 million and $0.02 million, respectively, in the statement of operations related to services performed under the Advisory Agreement. For the three and six months ended December 31, 2022, $0.01 million of costs incurred related to the performance of the Advisory Agreement services were included within research and development and $0.01 million were included in general and administrative expense, respectively. For the three and six months ended December 31, 2021, the Company recognized $0.1 million in the condensed consolidated statements of operations related to services performed under the Advisory Agreement. For the three and six months ended December 31, 2021, $0.05 million and $0.09 million of costs incurred related to the performance of the Advisory Agreement services were included within research and development and $0.02 million and $0.05 million were included within general and administrative expense, respectively.

In addition to the equity granted at formation, in May 2020 the Company and Mount Sinai each committed to making a loan to Kantaro. Mount Sinai committed to lend an initial amount of $0.3 million and an additional $0.5 million thereafter. The Company committed to lend an initial amount of $0.08 million and an additional $0.17 million thereafter. Each loan bears interest at a per year rate equal to 0.25%, compounded monthly, until repaid, and is repayable from the first amounts that would otherwise constitute cash available for distribution to the members of Kantaro (provided that each loan repayment will be made, 75% to Mount Sinai and 25% to the Company based on each investor’s proportionate ownership). The Company loaned Kantaro $0.25 million and initially recorded a note receivable. The loan had a carrying value of approximately $0.075 million at December 31, 2022 and June 30, 2022.

Net loss per ordinary share

6 Months Ended

Dec. 31, 2022

Earnings Per Share [Abstract]

Net loss per ordinary share

15. Net loss per ordinary share

Basic net loss per ordinary share is computed by dividing net loss by the weighted average number of ordinary shares outstanding during each period. Diluted net loss per ordinary share includes the effect, if any, from the potential exercise or conversion of securities, such as options which would result in the issuance of incremental ordinary shares. Potentially dilutive securities outstanding as of December 31, 2022 and 2021 have been excluded from the computation of diluted weighted average shares outstanding as they would be anti-dilutive. Therefore, the weighted average number of shares used to calculate both basic and diluted net loss per share are the same.

The following potentially dilutive securities have been excluded from the computation of diluted weighted-average shares of common stock outstanding, as they would be anti-dilutive:


	Six Months Ended December 31,
	2022		2021
Stock options to purchase common stock		4,977,699		4,372,901
Conversion of convertible note		2,071,264	—
		7,048,963		4,372,901

Subsequent events

6 Months Ended

Dec. 31, 2022

Subsequent Events [Abstract]

Subsequent events

16. Subsequent Events

The Company has evaluated subsequent events from the condensed consolidated balance sheet date through the date at which the condensed financial statements were available to be issued, and determined there are no other items requiring disclosure beyond those disclosed below.

In February 2023, the Company announced a $20.3 million private placement of Ordinary Shares and American Depository Shares (the "Fundraise"), the net proceeds of which will be used for sales and marketing, clinical product development, corporate support and financing costs. The Fundraise was comprised of subscriptions for 3,699,910 Ordinary Shares and 7,511,525 ADSs, at a price of $2.17 per ADS and £0.90 per Ordinary Share.

Basis of presentation and summary of significant accounting policies (Policies)	6 Months Ended
	Dec. 31, 2022
Accounting Policies [Abstract]
Principles of consolidation	Principles of consolidation The unaudited interim condensed consolidated financial statements include the accounts of Renalytix plc, and its wholly-owned subsidiaries, Renalytix AI, Inc. and Renalytix AI Limited. All inter-company balances and transactions have been eliminated in consolidation. The Company accounts for investments in which it has significant influence but not a controlling financial interest using the equity method of accounting.
Use of estimates	Use of estimates The preparation of the consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and reported amounts of expenses during the reporting period. Actual results could differ from those estimates. Due to the uncertainty of factors surrounding the estimates or judgments used in the preparation of the consolidated financial statements, actual results may materially vary from these estimates. Estimates and assumptions are periodically reviewed, and the effects of revisions are reflected in the consolidated financial statements in the period they are determined to be necessary. Significant areas that require management’s estimate include the assumptions used in determining the fair value of share-based awards, determining the fair value of the bonds, recording the prepaid/accrual and associated expense for research and development activities performed for the Company by third parties, determining useful lives of property and equipment and capitalized software, the assessment of noncontrolling interest and equity method investments.
Segment information	Segment information The Company manages its operations as a single operating segment for the purposes of assessing performance and making operating decisions. The Company’s singular focus is to make significant improvements in kidney disease diagnosis and prognosis, clinical care, patient stratification for drug clinical trials, and drug target discovery.
Foreign currency	Foreign currency The Company’s consolidated financial statements are presented in U.S. dollars, the reporting currency of the Company. The functional currency of Renalytix plc and Renalytix AI Limited is GB Pounds. The functional currency of Renalytix AI, Inc. is the U.S. dollar. Assets and liabilities of Renalytix plc and Renalytix AI Limited are translated at the rate of exchange at period-end, while the statements of operations are translated at the weighted average exchange rates in effect during the reporting period. The net effect of these translation adjustments is shown as a component of accumulated other comprehensive income (loss). Transaction gains and losses resulting from exchange rate changes on transactions denominated in currencies other than the functional currency are included in income in the period in which the change occurs and reported in the consolidated statements of operations and comprehensive loss.
Concentrations of credit risk and major customers	Concentrations of credit risk and major customers Financial instruments that potentially subject the Company to concentrations of credit risk consist principally of cash and accounts receivable balances. Periodically, the Company maintains deposits in accredited financial institutions in excess of federally insured limits. The Company deposits its cash in financial institutions that it believes have high credit quality and are not exposed to any unusual credit risk beyond the normal credit risk associated with commercial banking relationships and has not experienced any losses on such accounts. The Company’s accounts receivable are derived from revenue earned from customers located in the U.S. For the six months ended December 31, 2022 and 2021 approximately 94% and 99%, respectively, of all receivables were outstanding from two customers, Mount Sinai and AstraZeneca. The remaining receivables were due from other third party payors. The Company performs initial and ongoing credit reviews on customers, which involve consideration of the customers’ financial information, their location, and/or other factors to assess the customers’ ability to pay.
Fair value of financial instruments	Fair value of financial instruments At December 31, 2022 and June 30, 2022, the Company’s financial instruments included accounts receivable, prepaid expenses and other current assets, accounts payable and accrued expenses and other current liabilities. The carrying amounts of these assets and liabilities approximates fair value due to their short-term nature. The convertible notes are recorded at their estimated fair value.
Fair value option	Fair value option Under the Fair Value Option Subsections of ASC subtopic 825-10, Financial Instruments – Overall, the Company has the irrevocable option to report most financial assets and financial liabilities at fair value on an instrument-by-instrument basis, with changes in fair value reported in earnings (see Note 5). The Company has elected to measure and record the convertible notes at their estimated fair value.
Cash and cash equivalents	Cash and cash equivalents The Company considers all highly liquid investments purchased with an original maturity of 90 days or less to be cash equivalents. As of December 31, 2022, the Company had a cash balance of $23.8 million. As of June 30, 2022, the Company had a cash balance of $41.3 million.
Accounts receivable	Accounts receivable Accounts receivable are recorded at the invoice amount and are non-interest bearing. The Company considers receivables past due based on the contractual payment terms. The Company reserves specific receivables if collectability is no longer reasonably assured. Estimates for allowances for doubtful accounts are determined based on existing contractual obligations, historical payment patterns, and individual customer circumstances. No reserves have been recorded as of December 31, 2022 or June 30, 2022.
Property and equipment	Property and equipment Property and equipment are recorded at cost. Depreciation is determined using the straight-line method over the estimated useful lives ranging from three to ten years. Expenditures for maintenance and repairs are expensed as incurred while renewals and betterments are capitalized. When property and equipment are sold or otherwise disposed of, the cost and related accumulated depreciation are eliminated from the accounts and any resulting gain or loss is reflected in operations.
Leases	Leases Effective July 1, 2022, the Company adopted Accounting Standards Codification (“ASC”), Topic 842, Leases (“ASC 842”), using the required modified retrospective approach and utilizing the effective date as its date of initial application. At the inception of an arrangement, the Company determines whether the arrangement is or contains a lease based on the unique facts and circumstances present. Most leases with a term greater than one year are recognized on the balance sheet as right-of-use assets, lease liabilities and, if applicable, long-term lease liabilities. The Company has elected not to recognize on the balance sheet, leases with terms of one year or less. Operating lease liabilities and their corresponding right-of-use assets are recorded based on the present value of lease payments over the expected remaining lease term. However, certain adjustments to the right-of-use asset may be required for items such as incentives received, initial direct costs, or prepayments. The interest rate implicit in lease contracts is typically not readily determinable. As a result, the Company utilizes its incremental borrowing rates, which are the rates incurred to borrow on a collateralized basis over a similar term an amount equal to the lease payments in a similar economic environment. In accordance with the guidance in ASC 842, components of a lease should be split into three categories: lease components (e.g., land, building, etc.), non-lease components (e.g., common area maintenance, consumables, etc.), and non-components (e.g., property taxes, insurance, etc.). Then the fixed and in-substance fixed contract consideration (including any related to non-components) must be allocated based on the respective relative fair values to the lease components and non-lease components. Upon adoption, the Company did elected the package of practical expedients and the hindsight practical expedient but did not elect the easement practical expedient which is not applicable to the Company as the Company does not have any ground leases. In accordance with the package of practical expedients, the Company has not reassessed any of their existing or expired contracts or any other agreements that were previously concluded to not contain a lease for the following practical expedient guidance: (1) whether the arrangement is or contains a lease, (2) lease classification and (3) whether previously capitalized costs continue to qualify as initial direct costs.
Performance of contract liability to affiliate	Performance of contract liability to affiliate In May 2020, the Company and the Icahn School of Medicine at Mount Sinai entered into an operating agreement (“Kantaro Operating Agreement”) to form a joint venture, Kantaro Biosciences LLC (“Kantaro”), for the purpose of developing and commercializing laboratory tests for the detection of antibodies against SARS-CoV-2 originally developed by Mount Sinai. Kantaro has partnered with Bio-Techne Corporation to develop and launch the new test which is designed for use in any authorized clinical testing laboratory without the need for proprietary equipment. During the three and six months ended December 31, 2022, the Company recognized $0.01 million and $0.02 million, respectively, related to the performance of the contract liability with Kantaro. During the three and six months ended December 31, 2021, the Company recognized $0.1 million and $0.1 million, respectively, related to the performance of the contract liability with Kantaro. This represents the allocation of costs for performing services on behalf of Kantaro. On December 31, 2022, the members and managers of Kantaro decided that it was in the best interest of Kantaro to wind up the Kantaro business. As part of the termination agreement, the members agreed that Renalytix has no further liability to perform services on behalf of Kantaro.
Equity method investment	Equity method investments The Company accounts for equity investments where it owns a non-controlling interest, but has the ability to exercise significant influence, under the equity method of accounting. Under the equity method of accounting, the original cost of the investment is adjusted for the Company’s share of equity in the earnings of the equity investee and reduced by dividends and distributions of capital received, unless the fair value option is elected, in which case the investment balance is marked to fair value each reporting period and the impact of changes in fair value of the equity investment are reported in earnings. Kantaro Biosciences LLC As the Company can exert significant influence over, but does not control, Kantaro’s operations through voting rights or representation on Kantaro’s board of directors, the Company accounts for this investment using the equity method of accounting. The Company records its share in Kantaro’s earnings and losses in the condensed consolidated statement of operations. The Company assesses its investment for other-than-temporary impairment when events or changes in circumstances indicate that the carrying amount of the investment might not be recoverable and recognize an impairment loss to adjust the investment to its then-current fair value. The Company owned 25% of the membership equity units in Kantaro at December 31, 2022 and June 30, 2022. On December 31, 2022, the members and managers of Kantaro decided that it was in the best interest of Kantaro to wind up the business and unanimously signed a termination agreement. As part of the termination agreement, the members agreed to wind up Kantaro's business and dissolve it promptly after the effective date of the termination agreement.
Impairment assessment	Impairment assessment The Company evaluates its investments that are in unrealized loss positions, if any, and equity method investments for other-than-temporary impairment on a quarterly basis (see note 3). Such evaluation involves a variety of considerations, including assessments of the risks and uncertainties associated with general economic conditions and distinct conditions affecting specific issuers or investees. Factors considered by the Company include (i) the length of time and the extent to which an investment’s fair value has been below its cost; (ii) the financial condition, credit worthiness, and near-term prospects of the issuer; (iii) the length of time to maturity; (iv) future economic conditions and market forecasts; (v) the Company’s intent and ability to retain its investment for a period of time sufficient to allow for recovery of market value; (vi) an assessment of whether it is more likely than not that the Company will be required to sell its investment before recovery of market value; and (vii) whether events or changes in circumstances indicate that the investment’s carrying amount might not be recoverable.
Software development costs	Software development costs The Company follows the provisions of ASC 985, Software, which requires software development costs for software to be marketed externally to be expensed as incurred until the establishment of technological feasibility, at which time those costs are capitalized until the software is available for general release and amortized over its estimated useful life of ten years. Technological feasibility is established upon the completion of a working model that has been validated.
Revenue recognition	Revenue recognition The Company accounts for revenue under ASC 606 – Revenue from Contracts with Customers (“ASC 606”). Pursuant to ASC 606, the Company recognizes revenue when a customer obtains control of promised goods or services. The Company records the amount of revenue that reflects the consideration that it expects to receive in exchange for those goods or services. The Company applies the following five-step model in order to determine this amount: (i) identification of the promised goods or services in the contract; (ii) determination of whether the promised goods or services are performance obligations, including whether they are distinct in the context of the contract; (iii) measurement of the transaction price, including the constraint on variable consideration; (iv) allocation of the transaction price to the performance obligations; and (v) recognition of revenue when (or as) the Company satisfies each performance obligation. The Company only applies the five-step model to contracts when it is probable that it will collect the consideration to which it is entitled in exchange for the goods or services that it transfers to the customer. Once a contract is determined to be within the scope of ASC 606 at contract inception, the Company reviews the contract to determine which performance obligations it must deliver and which of these performance obligations are distinct. Certain contracts have options for the customer to acquire additional services. The Company evaluates these options to determine if a material right exists. If, after that evaluation, it determines a material right does exist, it assigns value to the material right based upon the renewal option approach. The Company recognizes as revenue the amount of the transaction price that is allocated to each performance obligation when that performance obligation is satisfied or as it is satisfied. The Company uses present right to payment and customer acceptance as indicators to determine the transfer of control to the customer occurs at a point in time. Sales tax and other similar taxes are excluded from revenues.
Cost of revenue	Cost of revenue Cost of revenue consists of costs directly attributable to the services rendered, including labor costs and lab consumables directly related to revenue generating activities.
Research and development expenses	Research and development expenses Research and development costs consist primarily of costs incurred in connection with the development of KidneyIntelX and other studies for KidneyIntelX to determine clinical value and performance in different CKD populations. Research and development costs are expensed as incurred.
Share-based compensation	Share-based compensation The Company measures equity classified share-based awards granted to employees and nonemployees based on the estimated fair value on the date of grant and recognizes compensation expense of those awards over the requisite service period, which is the vesting period of the respective award. Restricted stock units are measured at the fair value of our American Depository Shares on the date of grant. The Company accounts for forfeitures as they occur. For share-based awards with service-based vesting conditions, the Company recognizes compensation expense on a straight-line basis over the service period. The fair value of each stock option grant is estimated on the date of grant using the Black-Scholes option-pricing model, which requires inputs based on certain subjective assumptions, including the expected stock price volatility, the expected term of the option, the risk-free interest rate for a period that approximates the expected term of the option, and the Company’s expected dividend yield. The Company was a privately-held organization prior to November 2018 and has been a publicly-traded company for a limited period of time and therefore lacks company-specific historical and implied volatility information for its shares. Therefore, it estimates its expected share price volatility based on the historical volatility of publicly-traded peer companies and expects to continue to do so until such time as it has adequate historical data regarding the volatility of its own traded share price. The expected term of the Company’s stock options has been determined utilizing the “simplified” method for awards that qualify as “plain-vanilla” options. The risk-free interest rate is determined by reference to the U.S. Treasury yield curve in effect at the time of grant of the award for time periods approximately equal to the expected term of the award. Expected dividend yield is none based on the fact that the Company has never paid cash dividends on ordinary shares and does not expect to pay any cash dividends in the foreseeable future. The Company classifies share-based compensation expense in its condensed consolidated statement of operations and comprehensive loss in the same manner in which the award recipient’s payroll costs are classified or in which the award recipient’s service payments are classified.
Income taxes	Income taxes Income taxes are accounted for under the asset and liability method as required by FASB ASC Topic 740, Income Taxes (ASC 740). Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. A reduction in the carrying value of the deferred tax assets is required when it is not more likely than not that such deferred tax assets are realizable. FASB ASC Subtopic 740-10, Accounting for Uncertainty of Income Taxes(ASC 740-10), defines the criterion an individual tax position must meet for any part of the benefit of the tax position to be recognized in financial statements prepared in conformity with U.S. GAAP. The Company may recognize the tax benefit from an uncertain tax position only if it is more likely than not such tax position will be sustained on examination by the taxing authorities, based solely on the technical merits of the respective tax position. The tax benefits recognized in the financial statements from such a tax position should be measured based on the largest benefit having a greater than 50% likelihood of being realized upon ultimate settlement with the tax authority. In accordance with disclosure requirements of ASC 740-10, the Company’s policy on income statement classification of interest and penalties related to income tax obligations is to include such items as part of income tax expense.
Comprehensive loss	Comprehensive loss Comprehensive loss includes net loss as well as other changes in shareholders’ equity that result from transactions and economic events other than those with shareholders. For the periods presented changes in shareholders’ equity includes foreign currency translation as well as changes in fair value of the convertible note due to changes in instrument specific credit risk. The change in instrument specific credit risk was calculated as the change in the risk yield from the convertible debt issuance date to the valuation date. The instrument specific credit risk at issuance date was calibrated such that the fair value of the convertible bond was equal to the issue price as of the issuance date. The risk yield was adjusted to reflect the change in credit spreads between the issuance date and the valuation date.
Net loss per ordinary share	Net loss per ordinary share Basic net loss per ordinary share is computed by dividing net loss by the weighted average number of ordinary shares outstanding during each period. Diluted net loss per ordinary share includes the effect, if any, from the potential exercise or conversion of securities, such as options and convertible debt which would result in the issuance of incremental ordinary shares. The dilutive effect of convertible securities is calculated using the if-converted method. Under the if-converted method, interest charges applicable to the convertible debt as well as nondiscretionary adjustments which include any expenses or charges that are determined based on the income (loss) for the period are added back to net income. The convertible debt is assumed to have been converted at the beginning of the period (or at time of issuance, if later). For the quarter ended December 31, 2022, the diluted and basic net loss per share calculation excluded 4,977,699 shares related to stock options, as the exercise price of these options was greater than their market value. Therefore, the weighted average number of shares used to calculate both basic and diluted net loss per share are the same.
Emerging growth company	Emerging growth company The Company is an emerging growth company as defined in the Jumpstart Our Business Startups Act of 2012, as amended (the “JOBS Act”). Under the JOBS Act, companies have extended transition periods available for complying with new or revised accounting standards. The Company has elected to avail itself of this exemption and, therefore, while the Company is an emerging growth company it will not be subject to new or revised accounting standards at the same time that they become applicable to other public emerging growth companies that have not elected to avail themselves of this exemption.
Recently issued accounting pronouncements	Recently issued accounting pronouncements In June 2016, the FASB issued ASU 2016-13, Financial Instruments—Credit Losses: Measurement of Credit Losses on Financial Instruments, which requires measurement and recognition of expected credit losses for financial assets held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. This is different from the current guidance as this will require immediate recognition of estimated credit losses expected to occur over the remaining life of many financial assets. The new guidance will be effective for the Company on July 1, 2023. The Company is currently evaluating the impact of adopting this guidance to its consolidated financial statements. In August 2020, the FASB issued ASU 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 (“ASU2020-06”). ASU 2020-06 eliminates two of the three models in ASC 470-20 that require issuers to separately account for embedded conversion features and eliminates some of the requirements for equity classification in ASC 815-40-25 for contracts in an entity’s own equity. The guidance also requires entities to use the if-converted method for all convertible instruments in the diluted earnings per share calculation and generally requires them to include the effect of potential share settlement for instruments that may be settled in cash or shares. It is effective for annual periods beginning after December 15, 2023, and interim periods therein. The Company evaluated the effect ASU 2020-06 and it is not expected to have a material impact on the consolidated financial statements.

Revenue (Tables)

6 Months Ended

Dec. 31, 2022

Revenue from Contract with Customer [Abstract]

Summarizes the Changes in Deferred Revenue

The following table summarizes the changes in deferred revenue:


(in thousands)	December 31, 2022			June 30, 2022
Balance, beginning of period	$	46		$	122
Deferral of revenue		—			67
Revenue recognized		(46	)		(143	)
Balance, end of period	$	—		$	46

Fair value measurements and the fair value option (Tables)

6 Months Ended

Dec. 31, 2022

Fair Value Disclosures [Abstract]

Schedule of Fair Value of Assets Measured on Recurring Basis

The following fair value hierarchy table presents information about the Company’s assets measured at fair value on a recurring basis:


	Fair value measurement at
	reporting date using
(in thousands)	(Level 1)		(Level 2)		(Level 3)
December 31, 2022
Assets:
Available for sale securities	$	1,487	$	—	$	—
Liabilities:
Convertible notes	$	—	$	—	$	11,978
June 30, 2022
Assets:
Available for sale securities	$	2,744	$	—	$	—
Liabilities:
Convertible notes	$	—	$	—	$	12,342

Schedule of Changes in the fair value resulting from changes in the instrument-specific credit risk

Changes in the fair value resulting from changes in the instrument-specific credit risk will be presented separately in other comprehensive income.


(in thousands)	December 31, 2022
Balance at July 1, 2022	$	12,342
Change due to payment of principal and interest	$	(1,629	)
Change in credit risk	$	523
Change in time to maturity, stock price and Risk-Free Rates	$	730
FX Impact	$	12
Balance at December 31, 2022	$	11,978

Property and equipment (Tables)

6 Months Ended

Dec. 31, 2022

Property, Plant and Equipment [Abstract]

Schedule of Property Plant and Equipment

Property and equipment consists of (in thousands):


(in thousands)	December 31, 2022			June 30, 2022
Lab equipment	$	1,142		$	1,143
Software		1,473			1,476
Office equipment		124			124
Office furniture		35			35
Leasehold improvements		576			576
Total		3,350			3,354
Less accumulated depreciation and amortization		(1,055	)		(796	)
	$	2,295		$	2,558

Schedule of Expected Amortization Expense for the Next Five Years and Thereafter

As of December 31, 2022, the expected amortization expense for software for the next five years and thereafter is as follows:


(in thousands)
2023	$	89
2024		178
2025		178
2026		132
2027		120
Thereafter		432
	$	1,129

Accrued expenses and other current liabilities (Tables)

6 Months Ended

Dec. 31, 2022

Accounts Payable and Accrued Liabilities, Current [Abstract]

Schedule of Accrued Expenses and Other Current Liabilities

Accrued expenses and other current liabilities consisted of (in thousands):


	December 31, 2022		June 30, 2022
Consulting and professional fees	$	218	$	551
Research and development		1,058		1,060
Payroll and related benefits		2,867		1,437
License Expense		315		—
Other		31		12
	$	4,489	$	3,060

Leases (Tables)

6 Months Ended

Dec. 31, 2022

Lessee Disclosure [Abstract]

Schedule of Balance Sheets Classification of Leases

The following table shows the lease balance sheet classification of leases for the quarter ended December 31, 2022 (in thousands):


(in thousands)	December 31, 2022
Assets
Operating lease right-of-use assets, net of accumulated amortization	$	213
Liabilities
Current	$	129
Operating lease liabilities, current
Non-current
Operating lease liabilities, non-current	$	100
Total lease liabilities	$	229

Schedule of lease cost

The following table shows the lease costs for the six months ended December 31, 2022 (in thousands):


Lease costs (in thousands)	Statement of operations classification	December 31, 2022
Operating lease costs	Operating expenses: research and development	$	72
Short term lease costs	Operating expenses: research and development	$	8
Short term lease costs	Operating expenses: general and administrative	$	24
Short term lease costs	Cost of goods sold	$	183
Total lease costs		$	287


Other information	December 31, 2022
Cash paid for amounts included in the measurement of lease liabilities (in thousands)	$	72

Remaining lease term - operating leases (in years)		1.9
Discount rate - operating leases		10	%

Schedule of payments for noncancelable leases

The future minimum payments for noncancelable leases with terms in excess of one year as of December 31, 2022 are payable as follows (in thousands):


2023	$	84
2024	$	157
2025	$	46
Total	$	287

Share-based compensation (Tables)

6 Months Ended

Dec. 31, 2022

Share-based Payment Arrangement [Abstract]

Summary of Total Stock-Based Compensation Expenses


	Three months ended December 31,				Six Months Ended December 31,
	2022		2021		2022		2021
Research and development	$	113	$	121	$	180	$	394
General and administrative		700		792		1,396		599
Cost of revenue		2		—		2		—
	$	815	$	913	$	1,578	$	993

Summary of Stock Option Pricing Model Assumption


	Six Months Ended December 31,
	2022			2021
Expected term (in years)		6.1		6.04
Expected volatility		66.9	%		65.8	%
Risk-free rate		3.2	%		1.28	%
Dividend yield		—	%		—	%

Summary of Option Activity

The following table summarizes the stock option granted to employees and non-employees for the six months ended December 31, 2022:


	Number of shares under option plan			Weighted- average exercise price per option		Weighted- average remaining contractual life (in years)
Outstanding at June 30, 2022		4,599,899		$	4.00		8.1
Granted		555,300		$	1.50
Exercised		—
Forfeited		(177,500	)	$	8.43
Outstanding at December 31, 2022		4,977,699		$	3.56		7.2
Exercisable at December 31, 2022		3,721,211		$	3.21		6.6
Vested and expected to vest at December 31, 2022		4,977,699		$	3.56		7.2

Summary of Restricted Stock Units

Activity for restricted stock units for the six months ended December 31, 2022 is as follows:


	Number of Restricted Stock Units			Weighted- average Grant Date Fair Value
Non-vested balance at June 30, 2022		—		$	-
Granted		131,380		$	1.53
Vested		(41,400	)	$	1.44
Forfeited		—		$	-
Non-vested balance at December 31, 2022		89,980		$	1.57

Net loss per ordinary share (Tables)

6 Months Ended

Dec. 31, 2022

Earnings Per Share [Abstract]

Schedule of Potentially Dilutive Securities

The following potentially dilutive securities have been excluded from the computation of diluted weighted-average shares of common stock outstanding, as they would be anti-dilutive:


	Six Months Ended December 31,
	2022		2021
Stock options to purchase common stock		4,977,699		4,372,901
Conversion of convertible note		2,071,264	—
		7,048,963		4,372,901

Liquidity and Going Concern - Additional Information (Detail) - USD ($) $ in Thousands	1 Months Ended	12 Months Ended
	Feb. 28, 2023	Jun. 30, 2022	Dec. 31, 2022
Going Concern [Line Items]
Retained earnings surplus deficit		$ (132,718)	$ (155,115)
Cash and cash equivalents		41,333	$ 23,816
Net Proceeds from Issuance of Private Placement	$ 20,300	$ 20,300

Basis of presentation and summary of significant accounting policies - Additional Information (Detail) - USD ($)	3 Months Ended		6 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2022	Dec. 31, 2021	Jun. 30, 2022
Accounting Policies [Line Items]
Cash current	$ 23,800,000		$ 23,800,000		$ 41,300,000
Accounts receivable reserves recorded amount	0		$ 0		$ 0
Antidilutive securities excluded from the computation of earnings per share			7,048,963	4,372,901
Kantaro Bio Sciences LLC Member
Accounting Policies [Line Items]
Performance of the contract liability	$ 10,000.00	$ 100,000	$ 20,000.00	$ 100,000
Equity method investment ownership percentage	25.00%		25.00%		25.00%
Software and Software Development Costs [Member]
Accounting Policies [Line Items]
Estimated useful life			10 years
Share-based Payment Arrangement, Option [Member]
Accounting Policies [Line Items]
Antidilutive securities excluded from the computation of earnings per share	4,977,699		4,977,699	4,372,901
Service [Member] \| Revenue Benchmark [Member] \| Customer Concentration Risk [Member]
Accounting Policies [Line Items]
Concentration risk, percentage			94.00%	99.00%

Revenue - Additional Information (Detail) - Transferred at Point in Time [Member] - USD ($)	3 Months Ended		6 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2022	Dec. 31, 2021
Testing Services Revenue [Member]
Revenue From Contract With Customer [Line Items]
Revenue from contract with customer excluding assessed tax	$ 1,000,000.0	$ 700,000	$ 2,000,000.0	$ 1,100,000
Pharmaceutical Services Revenue [Member]
Revenue From Contract With Customer [Line Items]
Revenue from contract with customer excluding assessed tax	200,000	200,000	200,000	200,000
Professional Services Revenue [Member]
Revenue From Contract With Customer [Line Items]
Revenue from contract with customer excluding assessed tax	$ 0	$ 0	$ 0	$ 0

- Definition

Amount, excluding tax collected from customer, of revenue from satisfaction of performance obligation by transferring promised good or service to customer. Tax collected from customer is tax assessed by governmental authority that is both imposed on and concurrent with specific revenue-producing transaction, including, but not limited to, sales, use, value added and excise.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 30
-Subparagraph (a)
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8906-108599

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 40
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e9031-108599

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 41
-Subparagraph (a)
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e9038-108599

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-Subparagraph (b)
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8933-108599

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-Subparagraph (a)
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8933-108599

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 4
-Subparagraph (a)
-URI https://asc.fasb.org/extlink&oid=126920106&loc=SL49130543-203045

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 22
-Subparagraph (b)
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8736-108599

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 22
-Subparagraph (a)
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8736-108599

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 42
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e9054-108599

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 5
-URI https://asc.fasb.org/extlink&oid=126920106&loc=SL49130545-203045

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 924
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SAB Topic 11.L)
-URI https://asc.fasb.org/extlink&oid=6472922&loc=d3e499488-122856

+ Details

Revenue - Summarizes the Changes in Deferred Revenue (Detail) - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Dec. 31, 2022	Jun. 30, 2022
Revenue Recognition and Deferred Revenue [Abstract]
Balance, beginning of period	$ 46	$ 122
Deferral of revenue	0	67
Revenue recognized	(46)	(143)
Balance, end of period	$ 0	$ 46

Fair value measurements and the fair value option - Schedule of Fair Value of Assets Measured on Recurring Basis (Detail) - Fair Value, Recurring [Member] - USD ($) $ in Thousands	Dec. 31, 2022	Jun. 30, 2022
Level 1 [Member]
Assets, Fair Value Disclosure [Abstract]
Available for sale securities	$ 1,487	$ 2,744
Convertible notes	0	0
Level 2 [Member]
Assets, Fair Value Disclosure [Abstract]
Available for sale securities	0	0
Convertible notes	0	0
Level 3 [Member]
Assets, Fair Value Disclosure [Abstract]
Available for sale securities	0	0
Convertible notes	$ 11,978	$ 12,342

Fair value measurements and the fair value option - Schedule of Changes in the fair value resulting from changes in the instrument-specific credit risk (Detail) $ in Thousands	6 Months Ended
	Dec. 31, 2022 USD ($)
Fair Value Disclosures [Abstract]
Balance at July 1, 2022	$ 12,342
Change due to payment of principal and interest	(1,629)
Change in credit risk	523
Change in time to maturity, stock price and Risk-Free Rates	730
FX Impact	12
Balance at September 30, 2022	$ 11,978

Property and equipment - Schedule of Property Plant and Equipment (Detail) - USD ($) $ in Thousands	Dec. 31, 2022	Jun. 30, 2022
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	$ 3,350	$ 3,354
Less accumulated depreciation and amortization	(1,055)	(796)
Property, plant and equipment, net	2,295	2,558
Lab Equipment [Member]
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	1,142	1,143
Software [Member]
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	1,473	1,476
Office Equipment [Member]
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	124	124
Office Furniture [Member]
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	35	35
Leasehold Improvements [Member]
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	$ 576	$ 576

Property and equipment - Additional Information (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2022	Dec. 31, 2021
Depreciation Expense	$ 100	$ 100	$ 200	$ 200
Unamortized capitalized software development costs	1,100		1,100
Amortization expense related to Capitalized software costs	$ 100	$ 20	$ 100	$ 100

Property and equipment - Schedule of Expected Amortization Expense for the Next Five Years and Thereafter (Detail) $ in Thousands	Dec. 31, 2022 USD ($)
Property, Plant and Equipment [Abstract]
2023	$ 89
2024	178
2025	178
2026	132
2027	120
Thereafter	432
Amortization expense	$ 1,129

Accrued expenses and other current liabilities - Schedule of Accrued Expenses and Other Current Liabilities (Detail) - USD ($) $ in Thousands	Dec. 31, 2022	Jun. 30, 2022
Consulting and professional fees	$ 218	$ 551
Research and development	1,058	1,060
Payroll and related benefits	2,867	1,437
License Expense	315	0
Other	31	12
Accrued expenses and other current liabilities	$ 4,489	$ 3,060

Convertible Notes - Additional Information (Details) - USD ($) $ / shares in Units, $ in Thousands			1 Months Ended		3 Months Ended		6 Months Ended
	Apr. 07, 2022	Apr. 05, 2022	Oct. 31, 2022	Jul. 31, 2022	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2022	Dec. 31, 2021
Debt Instrument [Line Items]
Debt Instrument, Face Amount		$ 21,200			$ 11,900		$ 11,900
Senior convertible bond par value percentage		85.00%
Conversion price per share		$ 7.25
Convertible bonds, Conversion price percentage		20.00%
Reset down term one		12 months
Reset down term two		24 months
Reset down term three		36 months
Repayment of deferred amortization percentage		100.00%
Amount of Cash Amortization Payment				$ 1,400
Principal of Amount of Cash Amortization				1,100
Amount of Cash Amortization, Interest Payment				$ 300
Debt Instrument, Periodic Payment, Interest			$ 300
Principal Amount Outstanding of Cash Amortization							20,100
Proceeds from Notes Payable	$ 18,000
Debt Instrument, Interest Rate, Effective Percentage		5.50%
Fair value adjustment to convertible Debt					(440)	$ 0	730	$ 0
American Depository Shares [Member]
Debt Instrument [Line Items]
Conversion price per share		$ 8.70
Instrument Specific Credit Risk [Member]
Debt Instrument [Line Items]
Fair value adjustment to convertible Debt					900		500
Non Instrument Specific Credit Risk [Member]
Debt Instrument [Line Items]
Fair value adjustment to convertible Debt					$ 400		$ 700

Commitments and contingencies - Additional Information (Detail) - USD ($)		3 Months Ended		6 Months Ended
	Jan. 31, 2021	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2022	Dec. 31, 2021
Davita Inc [Member] \| Master Care Coordination Services Agreement [Member]
Initial term of agreement				3 years
Renewal term				1 year
Monthly payment commitment for care coordination services multiplied by the number of covered patients	$ 10.00
Payment commitment for patient engagement services multiplied by the number of covered patients	$ 3.50
SafeHarborPlan [Member]
Defined benefit contribution percentage				5.00%
Defined benefit contribution amount		$ 100,000	$ 100,000	$ 200,000	$ 200,000

License and services agreements - Additional Information (Detail) - USD ($) $ in Thousands	1 Months Ended	3 Months Ended			6 Months Ended
	Jul. 31, 2021	Dec. 31, 2022	Sep. 30, 2022	Dec. 31, 2021	Dec. 31, 2022	Dec. 31, 2021
Disclosure Of License Agreements [Line Items]
Revenue		$ 1,192		$ 845	$ 2,161	$ 1,327
Research and development expenses		3,326		4,134	$ 7,083	8,132
Joslin License [Member]
Disclosure Of License Agreements [Line Items]
Royalty as a percentage of net sales					5.00%
Date of expiry of license agreement					Jul. 31, 2025
License agreement period of extension					5 years
License agreement period of notice to be given for termination of agreement					180 days
Accrued Royalties		300			$ 300
Milestone Three [Member] \| Joslin License [Member]
Disclosure Of License Agreements [Line Items]
Revenue			$ 2,000
Milestone Accrued					$ 300
Percentage of obligation on sublicense consideration received					25.00%
Milestone One [Member] \| Joslin License [Member]
Disclosure Of License Agreements [Line Items]
Milestone payment payable		300			$ 300
Milestone One [Member] \| Licensed Products [Member] \| Joslin License [Member]
Disclosure Of License Agreements [Line Items]
Revenue					2,000
Milestone Two [Member] \| Joslin License [Member]
Disclosure Of License Agreements [Line Items]
Milestone payment payable		1,000			1,000
Milestone Two [Member] \| Licensed Products [Member] \| Joslin License [Member]
Disclosure Of License Agreements [Line Items]
Revenue					10,000
Mount Sinai [Member] \| ISSMS And SRA [Member]
Disclosure Of License Agreements [Line Items]
Research and development expenses		0		$ 200	800	$ 400
Mount Sinai [Member] \| Milestone One [Member] \| ISSMS And SRA [Member]
Disclosure Of License Agreements [Line Items]
Milestone payment payable		1,500			1,500
Revenue					50,000
Mount Sinai [Member] \| Milestone Two [Member] \| ISSMS And SRA [Member]
Disclosure Of License Agreements [Line Items]
Milestone payment payable		7,500			7,500
Revenue					$ 300,000
Mount Sinai [Member] \| Maximum [Member] \| ISSMS And SRA [Member]
Disclosure Of License Agreements [Line Items]
Royalty as a percentage of net sales					5.00%
Expiration period from first commercial sale of product					12 years
Mount Sinai [Member] \| Maximum [Member] \| Milestone Three [Member] \| ISSMS And SRA [Member]
Disclosure Of License Agreements [Line Items]
Percentage of obligation on sublicense consideration received					25.00%
Mount Sinai [Member] \| Minimum [Member] \| ISSMS And SRA [Member]
Disclosure Of License Agreements [Line Items]
Royalty as a percentage of net sales					4.00%
Mount Sinai [Member] \| Minimum [Member] \| Milestone Three [Member] \| ISSMS And SRA [Member]
Disclosure Of License Agreements [Line Items]
Percentage of obligation on sublicense consideration received					15.00%
Mount Sinai Clinical Trial Agreement [Member] \| ISMMS [Member]
Disclosure Of License Agreements [Line Items]
Estimated budget cost for the agreement					$ 3,200
Related party transaction, amount due to related party	$ 200
Expense related to the agreement		$ 0			$ 100

Leases - Additional Information (Detail) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2022	Dec. 31, 2021
Line of Credit Facility [Line Items]
Incremental borrowing rate of average commercial real estate loans			10.00%
Rent expense	$ 0.2	$ 0.1	$ 0.3	$ 0.2
Lab Space, Salt Lake City, UT [Member]
Line of Credit Facility [Line Items]
Lease term	5 years		5 years
Lease expiration date			Oct. 31, 2024
Lab Space, New York City, NY [Member]
Line of Credit Facility [Line Items]
Lease term	3 months		3 months
Lab Space, St. Petersburg, FL [Member]
Line of Credit Facility [Line Items]
Lease term	1 year		1 year
Borrowers with Excellent Credit Ratings [Member]
Line of Credit Facility [Line Items]
Percentage of average interest rates on commercial real estate loans			2.20%
Borrowers early in the Business ' Life Cycle and with Lower Credit Ratings [Member]
Line of Credit Facility [Line Items]
Percentage of average interest rates on commercial real estate loans			18.00%
Maximum [Member]
Line of Credit Facility [Line Items]
Lease term	12 months		12 months

Leases - Schedule of balance sheets classification of leases (Detail) - USD ($) $ in Thousands	Dec. 31, 2022	Jun. 30, 2022
Lessee Disclosure [Abstract]
Operating lease right-of-use assets, net of accumulated amortization	$ 213	$ 0
Operating lease liabilities, current	$ 129	0
Operating lease liabilities, current	current liability
Operating lease liabilities, non-current	$ 100	$ 0
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible Enumeration]	Operating lease liabilities, non-current
Total lease liabilities	$ 229

Leases - Schedule of lease cost (Detail) $ in Thousands	3 Months Ended	6 Months Ended
Leases - Schedule of lease cost (Detail) $ in Thousands	Dec. 31, 2022 USD ($)	Dec. 31, 2022 USD ($)
Lessee, Lease, Description [Line Items]
Total lease costs		$ 287
Cash paid for amounts included in the measurement of lease liabilities	$ 72
Remaining lease term - operating leases	1 year 10 months 24 days	1 year 10 months 24 days
Discount rate - operating leases	10.00%	10.00%
Research and Development [Member]
Lessee, Lease, Description [Line Items]
Operating lease cost		$ 72
Short-term lease cost		8
General and Administrative [Member]
Lessee, Lease, Description [Line Items]
Short-term lease cost		24
Cost of Sales [Member]
Lessee, Lease, Description [Line Items]
Short-term lease cost		$ 183

Leases - Schedule of payments for noncancelable leases (Detail) $ in Thousands	Dec. 31, 2022 USD ($)
Lessee Disclosure [Abstract]
2023	$ 84
2024	157
2025	46
Total	$ 287

Shareholders' equity - Additional Information (Detail) - USD ($)	6 Months Ended
	Dec. 31, 2022	Jun. 30, 2022
Stockholders' Equity Note [Abstract]
Common stock shares authorized	79,869,543	79,869,543
Cash dividends	$ 0

Share-based compensation - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2022	Dec. 31, 2021
Share based compensation weighted average fair value of the options granted			$ 1.50
Share-based compensation expense	$ 815	$ 913	$ 1,578	$ 993
General and Administrative [Member]
Share-based compensation expense	700	792	1,396	599
Research and Development [Member]
Share-based compensation expense	113	121	$ 180	394
Restricted Stock Units [Member]
Unrecognized compensation expense related to stock options weighted average period			1 year 2 months 12 days
The total fair value of restricted stock units and performance stock units vested			$ 60	$ 0
Total unrecognized compensation expense related to non-vested restricted stock units	100		100
Performance stock units [Member]
The total fair value of restricted stock units and performance stock units vested			$ 60
Renalytix AI plc Share Option Plan [Member]
Share based Compensation options vested			2,299,799
Share based compensation weighted average fair value of the options granted			$ 1.16	$ 7.10
Unrecognized compensation expense related to stock options	3,800		$ 3,800
Unrecognized compensation expense related to stock options weighted average period			2 years 1 month 24 days
Share based compensation weighted aggregate intrinsic value of the options outstanding	$ 0	$ 18,000	$ 0	$ 18,000
Equity Incentive Plan [Member]
Common stock reserved for future issuance	10,739,229		10,739,229
Equity Incentive Plan [Member] \| Restricted Stock [Member]
Share based Compensation options granted			962,600
Share based Compensation options granted percentage			25.00%
Share based Payment terms of award description			The options granted as of December 31, 2022 consist of 2,299,799 options which vest equally over twelve quarters following the grant date, 962,600 options which vest 25% on the one year anniversary and equally over twelve quarters following the one year anniversary
Equity Incentive Plan [Member] \| Restricted Stock [Member] \| 1/12th on the one year anniversary [Member]
Share based Compensation options granted			500,000
Equity Incentive Plan [Member] \| Restricted Stock [Member] \| 1/12th [Member]
Share based Compensation options granted percentage			0.08%
Share based Payment terms of award description			500,000 which vest 1/12th immediately and the remainder equally over the remaining eleven quarters, 475,300 which vest 25% on the one year anniversary, 50% on 2nd anniversary and 25% on the third anniversary and 40,000 which vest in eight equal quarterly instalments commencing on the Vesting Commencement date.
Equity Incentive Plan [Member] \| Restricted Stock [Member] \| Vest in eight equal quarterly instalments [Member]
Share based Compensation options granted			40,000
Equity Incentive Plan [Member] \| Restricted Stock [Member] \| Twenty five percent vest on first and third year anniversary and fifty percent vest on second year anniversary [Member]
Share based Compensation options granted			475,300
Equity Incentive Plan [Member] \| Restricted Stock [Member] \| Twenty five percent vest on one year anniversary [Member]
Share based Compensation options granted percentage			25.00%
Equity Incentive Plan [Member] \| Restricted Stock [Member] \| Fifty percent vest on second year anniversary [Member]
Share based Compensation options granted percentage			50.00%
Equity Incentive Plan [Member] \| Restricted Stock [Member] \| Twenty five percent vest on third year anniversary [Member]
Share based Compensation options granted percentage			25.00%
Employee Share Purchase Plan Member [Member]
Share based compensation,number of shares authorized for issuance	850,000		850,000
Share based compensation,purchase price of common stock at lower of the fair market value on the first day of offering period or purchase date percent			85.00%
Share based compensation,Employees may contribute upto their eligible compensation for purchase of common stock ,Percentage	15.00%		15.00%
Share based compensation,Purchase of Maximum number of shares worth of common stock for each calender year in which rights is outstanding			25,000
Share based compensation, number of shares purchased			131,412
Employee Share Purchase Plan Member [Member] \| General and Administrative [Member]
Share-based compensation expense	$ 20		$ 50
Employee Share Purchase Plan Member [Member] \| Maximum [Member]
Share based compensation,increase in number of shares for a period			10 years
Employee Share Purchase Plan Member [Member] \| Minimum [Member]
Increase in number of shares percentage of the total number of shares common stock outstanding during preceding calendar year End			1.00%
Share based compensation,Minimum number of shares to be added for each preceding calendar year end			2,000,000

Share-based compensation - Summary of Total Stock-based Compensation Expenses (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2022	Dec. 31, 2021
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Share-based compensation expense	$ 815	$ 913	$ 1,578	$ 993
Research and Development [Member]
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Share-based compensation expense	113	121	180	394
General and Administrative [Member]
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Share-based compensation expense	700	792	1,396	599
Cost of revenue [Member]
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Share-based compensation expense	$ 2	$ 0	$ 2	$ 0

Share-based compensation - Summary of Stock Option Pricing Model Assumption (Detail)	6 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected term (in years)	6 years 1 month 6 days	6 years 14 days
Expected volatility	66.90%	65.80%
Risk-free rate	3.20%	1.28%
Dividend yield	0.00%	0.00%

Share-based compensation - Summary of Option Activity (Detail) - $ / shares	6 Months Ended	12 Months Ended
	Dec. 31, 2022	Jun. 30, 2022
Share-based Payment Arrangement [Abstract]
Number of shares under option plan, Beginning balance	4,599,899
Number of shares under option plan, Granted	555,300
Number of shares under option plan, Exercised	0
Number of shares under option plan, Forfeited	(177,500)
Number of shares under option plan, Ending balance	4,977,699	4,599,899
Number of shares under option plan, Exercisable at December 31, 2022	3,721,211
Number of shares under option plan, Vested and expected to vest at December 31, 2022	4,977,699
Weighted-average exercise price per option, Beginning balance	$ 4.00
Weighted-average exercise price per option, Granted	1.50
Weighted-average exercise price per option, Forfeited	8.43
Weighted-average exercise price per option, Ending balance	3.56	$ 4.00
Weighted-average exercise price per option, Exercisable at December 31, 2022	3.21
Weighted- average exercise price per option Vested and expected to vest at December 31, 2022	$ 3.56
Weighted- Average Remaining Contractual Life (years)	7 years 2 months 12 days	8 years 1 month 6 days
Weighted- average remaining contractual life Exercisable at December 31, 2022	6 years 7 months 6 days
Weighted- average remaining contractual life Vested and expected to vest at December 31, 2022	7 years 2 months 12 days

Share-based compensation - Summary of Restricted Stock Units (Detail) - Restricted Stock Units (RSUs) [Member]	6 Months Ended
	Dec. 31, 2022 $ / shares shares
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward]
Number of restricted stock units, Beginning Blance \| shares	0
Number of restricted stock units, Granted \| shares	131,380
Number of restricted stock units, Vested \| shares	(41,400)
Number of restricted stock units, Forfeited \| shares	0
Number of restricted stock units, Ending balnce \| shares	89,980
Weighted-average Grant Date Fair Value
Weighted-average grant date fair value, Beginning balance \| $ / shares	$ 0
Weighted-average grant date fair value, Granted \| $ / shares	1.53
Weighted-average grant date fair value, Vested \| $ / shares	1.44
Weighted-average grant date fair value, Forfeited \| $ / shares	0
Weighted-average grant date fair value, Ending Balance \| $ / shares	$ 1.57

Related-party transactions - Additional Information (Detail) - USD ($)	3 Months Ended			6 Months Ended		12 Months Ended
	Dec. 31, 2022	Sep. 30, 2022	Dec. 31, 2021	Dec. 31, 2022	Dec. 31, 2021	Jun. 30, 2022
Related Party Transaction [Line Items]
Loans and Leases Receivable				0.075		0.075
Mount Sinai [Member]
Related Party Transaction [Line Items]
Amount due to related party	$ 4,000,000.0			$ 4,000,000.0
Capital Unit, Class A [Member] \| Mount Sinai [Member]
Related Party Transaction [Line Items]
Equity method investment shares	750			750
Ekf Diagnostics [Member]
Related Party Transaction [Line Items]
Related party transaction expenses	$ 30,000.00		$ 50,000.00	$ 50,000.00	$ 100,000
Icahn School Of Medicine At Mount Shenai [Member]
Related Party Transaction [Line Items]
Related party transaction expenses	0.0		1,500,000	1,400,000	2,700,000
Kantaro Bio Sciences LLC Member
Related Party Transaction [Line Items]
Loan commitment to related party	$ 80,000.00			$ 80,000.00
Equity method investment ownership percentage	25.00%			25.00%		25.00%
Payment towards advances to related parties		$ 250,000
Carrying value of investment written down				$ 0
Kantaro Bio Sciences LLC Member \| Compounded Monthly [Member]
Related Party Transaction [Line Items]
Related party transaction interest rate				0.25%
Kantaro Bio Sciences LLC Member \| Mount Sinai [Member]
Related Party Transaction [Line Items]
Loan commitment to related party	$ 300,000			$ 300,000
Additional loan commitment to related party	$ 500,000			$ 500,000
Equity method investment ownership percentage	75.00%			75.00%
Kantaro Bio Sciences LLC Member \| Advisory Agreement [Member]
Related Party Transaction [Line Items]
Period of service agreement with related party				5 years
Due to affiliates	$ 0.0			$ 0.0
Recognised amount for services performed under agreement	10,000.00		100,000	20,000.00	100,000
Kantaro Bio Sciences LLC Member \| Advisory Agreement [Member] \| Valuation Technique, Discounted Cash Flow [Member] \| Fair Value, Inputs, Level 3 [Member]
Related Party Transaction [Line Items]
Due to affiliates	$ 2,000,000.0			$ 2,000,000.0
Kantaro Bio Sciences LLC Member \| Advisory Agreement [Member] \| Capital Unit, Class A [Member]
Related Party Transaction [Line Items]
Equity method investment shares	250			250
Kantaro Bio Sciences LLC Member \| Advisory Agreement [Member] \| Capital Unit, Class A [Member] \| Valuation Technique, Discounted Cash Flow [Member] \| Fair Value, Inputs, Level 3 [Member]
Related Party Transaction [Line Items]
Equity method investments at fair value	$ 2,000,000.0			$ 2,000,000.0
Kantaro Bio Sciences LLC Member \| Commitment To Lend Additional Amount [Member]
Related Party Transaction [Line Items]
Additional loan commitment to related party	170,000			170,000
Kantaro Bio Sciences LLC Member \| Research and Development [Member] \| Advisory Agreement [Member]
Related Party Transaction [Line Items]
Costs incurred related to the performance of the services	$ 10,000.00		50,000.00		90,000.00
Kantaro Bio Sciences LLC Member \| General and Administrative [Member] \| Advisory Agreement [Member]
Related Party Transaction [Line Items]
Costs incurred related to the performance of the services			$ 20,000.00	$ 10,000.00	$ 50,000.00

Net loss per ordinary share - Schedule of Potentially Dilutive Securities (Details) - shares	3 Months Ended	6 Months Ended
	Dec. 31, 2022	Dec. 31, 2022	Dec. 31, 2021
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from the computation of earnings per share		7,048,963	4,372,901
Stock options to purchase common stock
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from the computation of earnings per share	4,977,699	4,977,699	4,372,901
Conversion of convertible note
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from the computation of earnings per share		2,071,264	0

Subsequent Events - Additional Information (Details) $ / shares in Units, $ in Millions	1 Months Ended	12 Months Ended
	Feb. 28, 2023 USD ($) shares	Jun. 30, 2022 USD ($)	Feb. 28, 2023 £ / shares	Feb. 28, 2023 $ / shares
Subsequent Event [Line Items]
Net Proceeds from Issuance of Private Placement \| $	$ 20.3	$ 20.3
Stock issued	3,699,910
Shares Issued, price per share \| £ / shares			£ 0.90
American Depository Shares
Subsequent Event [Line Items]
Stock issued	7,511,525
Shares Issued, price per share \| $ / shares				$ 2.17