Restructuring

9 Months Ended

Sep. 30, 2021

Restructuring and Related Activities [Abstract]

Restructuring

RESTRUCTURING

On July 29, 2021, our Board of Directors approved, and on August 2, 2021, we began implementing a restructuring plan to better align our workforce and anticipated commercial and development spend with our capital resources and the needs of our business following the receipt of the CRL. Under the restructuring plan, we reduced our workforce by 83 employees (approximately 33%). Impacted employees received cash payments equal to their base pay for a notice period of sixty (60) days and Company funded COBRA premiums through such notice period. In addition, impacted employees were eligible to receive severance benefits and additional Company funded COBRA premiums, contingent upon an impacted employee’s execution (and non-revocation) of a separation agreement, which includes a general release of claims against us. In connection with the restructuring, we have incurred restructuring charges of $3.6 million, which were recorded during the quarter ended September 30, 2021, related to one-time termination notice and severance payments and other employee-related costs. Of this charge, $1.2 million was recorded in research and development expenses, and $2.4 million was recorded in general and administrative expense in the accompanying condensed statements of operations and comprehensive loss. The cash payments related to the reduction in workforce were disbursed during the quarter ended September 30, 2021.

As discussed in Note 13, on October 8, 2021, our Board of Directors approved an additional restructuring plan subsequent to the conclusion of an End of Review Meeting with the FDA on October 1, 2021. The restructuring plan is expected to be completed in December 2021.