Strategic Reprioritization

6 Months Ended

Jun. 30, 2023

Restructuring And Related Activities [Abstract]

Note 13 – 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 condensed consolidated statements of operations for the six months ended June 30, 2022, primarily within research and development expenses. Throughout the first quarter of 2023, the Company further reduced headcount and recorded additional one-time severance and termination related costs of $2.7 million within research and development and general and administrative expenses.

The Company expects payment of these costs to be complete by March 31, 2024. The amount of accrued severance recorded as of June 30, 2023 is as follows (in thousands):


	As of June 30, 2023
Accrued severance balance as of December 31, 2022	$	1,463
Severance recorded		2,691
Severance paid		(2,400	)
Accrued severance balance as of June 30, 2023	$	1,754