In August 2022, the board of directors of the Company approved a reduction of the Company’s workforce by approximately 37% across all areas of the Company. This workforce reduction was completed as of September 30, 2022. These actions reflect the reprioritization of its clinical and research initiatives. The Company has paused plans to initiate Phase 2 trials of exoSTING and exoIL-12 while prioritizing its Phase 1 clinical trial of exoASO-STAT6.

During each of the three and nine months ended September 30, 2022, the Company recognized $0.7 million of restructuring charges in the condensed consolidated statement of operations. These charges included $0.5 million of one-time termination benefits and contractual termination benefits for severance, healthcare, and related benefits and $0.2 million of non-cash stock-based compensation expense. The Company recorded $0.5 million and $0.2 million in research and development expenses and general and administrative expenses, respectively.

Details of the restructuring liability activity for the Company's workforce reduction for the period ended September 30, 2022 are as follows:


	September 30, 2022
	(in thousands)
Balance at December 31, 2021	$	—
Restructuring charges		651
Severance payments		(329	)
Stock-based compensation expense		(151	)
Balance at September 30, 2022	$	171