On April 12, 2023, based on the review of the inconclusive interim results from our Phase 1/2 clinical trial of pegtarviliase for the treatment of Classical Homocystinuria and other business considerations, the Company announced

that it had initiated a process to explore strategic alternatives to maximize stockholder value and engaged an independent exclusive financial advisor to support this process.

As a result, the Company implemented a restructuring plan resulting in an approximate 83% reduction of the Company’s existing headcount by June 30, 2023. The Company recognized restructuring expenses consisting of one-time cash severance payments and other employee-related costs of $6.4 million during the three and six months ended June 30, 2023. Cash payments for employee related restructuring charges of $2.2 million were paid as of June 30, 2023. In addition, the Company recognized $1.0 million in non-cash stock-based compensation expense related to the accelerated vesting of stock-based awards for certain employees. The Company recorded these restructuring charges based on each employee’s role to the respective research and development and general and administrative operating expense categories on its condensed consolidated statements of operations and comprehensive loss.

The following table summarizes the changes in the Company's accrued restructuring balance (in thousands):


	Beginning Balance							Ending Balance
	December 31, 2022		Charges		Payments			June 30, 2023
Severance liability	$	—	$	6,448	$	(2,200	)	$	4,248

During the second quarter of 2023, the Company sold various lab equipment, consumables, and furniture and fixtures for total consideration of $0.5 million. After recording the disposal of all property and equipment net of proceeds, the Company recorded a $0.7 million and $0.2 million loss on disposal of long lived assets which is included in Research and development and General and administrative expenses, respectively.

Effective June 30, 2023, the Company abandoned its leased office space in Austin, Texas. As a result, the Company recognized an impairment losses of $0.9 million related to the operating lease right-of-use asset and $1.7 million related to leasehold improvements. As of June 30, 2023, the Company was in default of its lease obligations by abandoning the leased space. As a result, the full remaining lease liability is classified as a current liability as the lessor can call all future required payments to be made immediately.

A summary of the charges related to the restructuring activities as of June 30, 2023 is as follows (in thousands):


	Severance and related		Stock compensation		Loss on disposal of long lived assets		Lease asset impairment		Total Restructuring Costs
Research and development	$	3,182	$	123	$	749	$	1,405	$	5,459
General and administrative		3,266		870		182		1,175		5,493
Total	$	6,448	$	993	$	931	$	2,580	$	10,952