Discontinued Operations (Tables)

9 Months Ended

Dec. 31, 2024

Discontinued Operations and Disposal Groups [Abstract]

Schedule of Discontinued Operations

The following table summarizes the major classes of assets and liabilities of the discontinued operations:

	December 31, 2024		March 31, 2024
	(in thousands)
Prepaid expenses and other current assets	$	1,057	$	1,400
Total current assets of discontinued operations	$	1,057	$	1,400
Property and equipment, net(1)	$	54	$	5,852
Operating lease ROU assets	—		10,764
Other assets	427		1,219
Total assets noncurrent assets of discontinued operations	$	481	$	17,835
Accounts payable (includes related party amounts of nil and $3,809, respectively)	$	886	$	6,203
Accrued expenses and other current liabilities (includes related party amounts of $2,190 and $6,752, respectively)	4,873		11,431
Operating lease liabilities(2)	4,064		3,738
Total current liabilities of discontinued operations	$	9,823	$	21,372
Operating lease liabilities, noncurrent(2)	$	4,925	$	8,010
Total noncurrent liabilities of discontinued operations	$	4,925	$	8,010

(1)In connection with the November 2024 Reduction Plan, the Company wrote off leasehold improvements and disposed of certain laboratory equipment and software. The loss on disposal of property and equipment was immaterial for the three and nine months ended December 31, 2024.

(2)The Company's operating lease for the South San Francisco Facility has a remaining contractual period of 2.1 years. As of December 31, 2024, the future minimum lease payments included in the measurement of the Company’s operating lease liabilities were $1.1 million for the remainder of fiscal 2025, $4.6 million for fiscal 2026, and $3.9 million for fiscal 2027, and the total imputed interest was $0.7 million.

The following table summarizes the condensed operating results of the discontinued operations:

	Three Months Ended December 31,				Nine Months Ended December 31,
	2024		2023		2024		2023
	(in thousands)
Operating expenses:
Research and development (includes related party expenses of $260 and $2,781 for the three months ended December 31, 2024 and 2023, respectively, and $445 and $10,989 for the nine months ended December 31, 2024 and 2023, respectively)(1)(2)	$	6,700	$	16,996	$	31,611	$	77,779
Restructuring and other charges(2)	12,060		1,280		14,078		3,726
Total operating expenses	18,760		18,276		45,689		81,505
Net loss from discontinued operations(3)	$	(18,760)	$	(18,276)	$	(45,689)	$	(81,505)

(1)For the three months ended December 31, 2024 and 2023, the Company recorded operating lease costs of $0.9 million and $1.1 million, respectively, and variable operating lease costs of $0.3 million and $0.2 million, respectively, associated with the South San Francisco Facility. For the nine months ended December 31, 2024 and 2023, the Company recorded operating lease costs of $3.0 million and $3.1 million, respectively, and variable operating lease costs of $0.8 million and $0.6 million, respectively, associated with the South San Francisco Facility.

(2)See Note 13, “Equity Incentive Plans and Stock-Based Compensation,” for details on total stock based compensation related to discontinued operations.

(3)Pre-tax net loss from discontinued operations equals net loss from discontinued operations as there was no provision for (benefit from) income tax related to discontinued operations for the three and nine months ended December 31, 2024 and 2023.

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

	One-Time Employee Termination Benefits
	(in thousands)
Accrued restructuring costs included in accrued expenses and other current liabilities as of March 31, 2024	$	22
Restructuring charges incurred during the period	4,045
Amounts paid during the period	(3,352)
Accrued restructuring costs included in accrued expenses and other current liabilities as of December 31, 2024	$	715

The following table summarizes the condensed cash flow information of the discontinued operations:

	Nine Months Ended December 31,
	2024		2023
	(in thousands)
Operating activities (non-cash adjustments to net loss):
Depreciation and amortization	$	1,789	$	2,421
Stock-based compensation expense	$	2,742	$	9,863
Impairment of long-lived assets	$	10,033	$	—
Changes in operating assets and liabilities:
Prepaid expenses and other current assets	$	343	$	1,756
Operating lease ROU assets	$	2,449	$	2,435
Other assets	$	792	$	157
Accounts payable (includes related party amounts of $(3,809) and $3,879 for the nine months ended December 31, 2024 and 2023, respectively)	$	(5,272)	$	309
Accrued expenses and other current liabilities (includes related party amounts of $(4,562) and $42 for the nine months ended December 31, 2024 and 2023, respectively)	$	(6,616)	$	(6,013)
Operating lease liabilities	$	(2,759)	$	(2,459)
Cash flows from investing activities:
Purchases of property and equipment	$	(152)	$	(468)
Proceeds from sale of property and equipment	$	2,360	$	5