Strategic Reprioritization

12 Months Ended

Dec. 31, 2022

Restructuring and Related Activities [Abstract]

Strategic Reprioritization

Note 12— Strategic Reprioritization

In March 2022, the Company implemented changes to the Company’s organizational structure as well as a broader operational cost reduction plan to enable the Company to focus on specific clinical-stage programs for GAN and Rett syndrome. Substantially all other research and development activities have been paused to increase operational efficiency.

In connection with prioritization of programs, the Company reduced headcount by approximately 35% across all functions in March 2022. In accordance with ASC 420, Exit and Disposal Activities, the Company recorded one-time severance and termination-related costs of $2.6 million in the consolidated statements of operations for the year ended December 31, 2022, primarily within research and development expenses. In December 2022, the Company further reduced headcount and recorded additional one-time severance and termination related costs of $1.5 million within research and development and general and administrative expenses. The Company expects payment of these costs to be complete by December 31, 2023. The amount of accrued severance recorded as of December 31, 2022 is as follows (amounts in thousands):

	As of December 31, 2022
Accrued severance recorded	$	4,035
Severance paid		(2,572	)
Accrued severance balance	$	1,463