Strategic Reprioritization

12 Months Ended

Dec. 31, 2023

Restructuring and Related Activities [Abstract]

Note 14— 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. 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 change in accrued severance during the years ended December 31, 2023 and 2022 is as follows (amounts in thousands):


	Accrued Severance
Accrued severance as of January 1, 2022	$	—
Severance recorded		4,035
Severance paid		(2,572	)
Accrued severance as of December 31, 2022	$	1,463
Severance recorded		2,691
Severance paid		(3,764	)
Accrued severance as of December 31, 2023	$	390