Restructuring and Impairment Charges

6 Months Ended

Jun. 30, 2024

Restructuring and Related Activities [Abstract]

Restructuring and Impairment Charges

14. 2023 Restructuring and Impairment Charges

In October 2023, the Company announced a strategic restructuring and workforce reduction to prioritize its clinical-stage assets, extend its cash runway and reduce its total workforce. All employees affected by the workforce reduction separated from the company by December 31, 2023. In connection with the workforce reduction, the Company committed to a plan to sublease Suite 400 of its corporate headquarters which resulted in an impairment to the ROU asset and certain property and equipment no longer utilized under current or expected future operations.

The Company recognized cumulative restructuring charges of $6.2 million, comprised primarily of one-time employee termination benefits and long-lived assets impairment costs during the year ended December 31, 2023. The Company recognized an additional $1.5 million impairment charge in relation to Suite 400 to write off the net book value of the ROU asset as of June 30, 2024. The unpaid severance and related benefit costs included in accrued liabilities in the Condensed Consolidated Balance Sheets were $0.2 million and $1.4 million as of June 30, 2024 and December 31, 2023, respectively. The Company expects that substantially all of the remaining accrued restructuring liabilities will be paid in cash over next four months.

The following table illustrates the accrual activities and payments relating to restructuring and impairment charges (in thousands):

	Severance and related benefit costs			Asset impairments			Total
Balance as of January 1, 2023	$	—		$	—		$	—
Restructuring charges		3,279			2,908			6,187
Cash payments made		(1,858	)		—			(1,858	)
Non-cash charges		—			(2,908	)		(2,908	)
Balance as of December 31, 2023	$	1,421		$	—		$	1,421
Cash payments made		(775	)		—			(775	)
Balance as of March 31, 2024	$	646		$	—		$	646
Restructuring charges		(67	)		1,549			1,482
Cash payments made		(344	)		—			(344	)
Non-cash charges		—			(1,549	)		(1,549	)
Balance as of June 30, 2024	$	235		$	—		$	235