Restructuring

9 Months Ended

Sep. 30, 2023

Restructuring

Restructuring

Note 4. Restructuring

On August 8, 2023, the Company’s Board of Directors approved a broad-based strategic reprioritization (the “Reprioritization”). The Company took actions to reduce certain operational and workforce expenses that were no longer deemed core to ongoing operations in order to extend its cash runway and drive innovation and growth in high potential clinical development and value creating opportunities. These actions included a shift in commercial strategy for IGALMI^TM in the institutional setting, a reduction of in-hospital commercialization expenses, a suspension of programs no longer determined to be core to ongoing operations, and a prioritization of at-home treatment setting opportunities for BXCL501.

As part of this strategy, the Company’s Board of Directors approved a reduction of approximately 60% of the Company’s current workforce. The Company notified impacted employees on August 14, 2023 and recorded restructuring costs of $4,163 in the three-month period ended September 30, 2023. These costs consisted of severance and benefit costs of $4,063 and contract termination costs of $100, all of which are expected to be paid in cash. The Company paid $149 of severance and benefit costs and $100 of contract termination costs during the three-month period ended September 30, 2023. Accrued restructuring costs of $3,914 are included in accrued expenses in the Condensed Consolidated Balance Sheets as of September 30, 2023. The remaining costs are expected to be paid primarily during the fourth quarter of 2023. The estimated costs that the Company expects to incur and the expected timing to complete the Reprioritization are subject to a number of assumptions, and actual results may differ. The Company may also incur other cash or non-cash charges not currently contemplated due to events that may occur as a result of, or in association with, the Reprioritization.