Restructuring

9 Months Ended

Dec. 31, 2024

Restructuring and Related Activities [Abstract]

In June 2023, the Company approved a reduction in force intended to restructure and align strategically its workforce with the Company’s strategy and to reduce the Company’s operating costs, primarily in the former Consumer

and Research Services segment. Subsequently in August 2023, the Company approved another reduction in force primarily intended to restructure and strategically align the former Therapeutics segment’s workforce. On August 1, 2024, the Board of Directors of the Company determined that it was in the best interests of the Company and its stockholders to cease operations of the Therapeutics Discovery portion of the Company’s former Therapeutics segment, effective August 9, 2024.

In November 2024, the Company’s Board of Directors approved the November 2024 Reduction in Force, which, as previously disclosed, represented a reduction of approximately 40% of the Company’s workforce and also included the closure of substantially all operations in the Company’s Therapeutics operating segment. The November 2024 Reduction Plan is intended to restructure and strategically align the Company’s workforce and organization with the Company’s current strategy and to reduce the Company’s operating costs. The Company completed the November 2024 Reduction Plan substantially during the three months ended December 31, 2024, with certain affected employees retained through a transition period expected to end no later than the end of fiscal 2025.

During the three and nine months ended December 31, 2024, the Company recorded restructuring charges of $10.6 million and $10.9 million, respectively, related to continuing operations within restructuring and other charges in the condensed consolidated statements of operations, of which $8.5 million and $8.8 million, respectively, were related to cash severance payments and benefits continuation, and $2.1 million and $2.1 million, respectively, to stock-based compensation related to equity modifications in connection with the reductions in force. During the three and nine months ended December 31, 2023, the Company recorded restructuring charges of $0.2 million and $4.6 million, respectively, related to continuing operations within restructuring and other charges in the condensed consolidated statements of operations, of which $0.2 million and $4.0 million, respectively, were related to cash severance payments and benefits continuation, and nil and $0.6 million, respectively, to stock-based compensation related to equity modifications in connection with the reductions in force.

The following table shows the total amount incurred and accrued related to one-time employee termination benefits from continuing operations:


	One-Time Employee Termination Benefits
	(in thousands)
Accrued restructuring costs included in accrued expenses and other current liabilities as of March 31, 2024	$	—
Restructuring charges incurred during the period	10,866
Amounts paid during the period	(8,501)
Accrued restructuring costs included in accrued expenses and other current liabilities as of December 31, 2024	$	2,365

The Company does not expect to incur any further material expenses in connection with these reductions in force.