In accordance with ASC 205, the Company determined that the closure of substantially all operations in the Company’s Therapeutics operating segment in November 2024 represented a strategic shift that will have a major effect on the Company’s operations and financial results, thus meeting the criteria to be reported as discontinued operations as of March 31, 2025. Discontinued operations include research and development costs, including lab-related research services, clinical development, and collaboration costs, as well as personnel-related, lease, equipment, and depreciation costs associated with the former Therapeutics operating segment. Also included are restructuring costs, including cash severance payments, benefits continuation, stock-based compensation, and exit costs associated with the Company abandoning the lease for its South San Francisco, California lab facility (the “South San Francisco Facility”) following the November 2024 Reduction Plan.

General corporate overhead costs for shared services historically allocated to the former Therapeutics operating segment that do not meet the requirements to be presented in discontinued operations have been allocated to the continuing operations in accordance with ASC Subtopic 205-20, Presentation of Financial Statements — Discontinued Operations, for the periods presented herein, as the costs were not directly attributable to the discontinued operations of the former Therapeutics operating segment. These costs were $2.4 million, $8.2 million and $10.2 million for the fiscal years ended March 31, 2025, 2024 and 2023, respectively.


	March 31, 2025		March 31, 2024
	(in thousands)
Prepaid expenses and other current assets	$	—	$	1,400
Total current assets of discontinued operations	$	—	$	1,400

Property and equipment, net(1)	$	—	$	5,852
Operating lease ROU assets	—		10,764
Other assets	—		1,219
Total assets noncurrent assets of discontinued operations	$	—	$	17,835

Accounts payable (includes related party amounts of nil and $3,809, respectively)	$	—	$	6,203
Accrued expenses and other current liabilities (includes related party amounts of nil and $6,752, respectively)	—		11,431
Operating lease liabilities(2)	—		3,738
Total current liabilities of discontinued operations	$	—	$	21,372

Operating lease liabilities, noncurrent(2)	$	—	$	8,010
Total noncurrent liabilities of discontinued operations	$	—	$	8,010

(1)Depreciation and amortization expense was $1.8 million, $3.2 million and $4.2 million for the fiscal years ended March 31, 2025, 2024 and 2023, respectively. 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 fiscal year ended March 31, 2025.

(2)As of March 31, 2025, operating lease liabilities have been classified as liabilities subject to compromise in the consolidated balance sheets because the related claims are subject to resolution through the bankruptcy reorganization process. See Note 12, “Leases,” for additional details.


	Year Ended March 31,
	2025	2024	2023
	(in thousands)
Operating expenses:
Research and development (includes related party expenses of $445, $12,771, and $10,709, respectively)(1)(2)	31,611	96,037	100,962
Restructuring and other charges(2)	14,078	3,726	—
Total operating expenses	45,689	99,763	100,962
Net loss from discontinued operations(3)	(45,689)	(99,763)	(100,962)

(1)For the fiscal years ended March 31, 2025, 2024 and 2023, the Company recorded operating lease costs of $3.0 million, $4.2 million and $3.8 million, respectively, and variable operating lease costs of $0.8 million, $0.9 million and $0.7 million, respectively, associated with the South San Francisco Facility.

During the fiscal years ended March 31, 2025 and 2024, the Company recorded restructuring charges of $14.1 million and $3.7 million, respectively, related to discontinued operations, of which $3.5 million and $2.7 million, respectively, were related to cash severance payments and benefits continuation, and $0.5 million and $1.0 million, respectively, were related to stock-based compensation related to equity modifications in connection with the reductions in force. In addition, in connection with the November 2024 Reduction Plan, the Company abandoned the South San Francisco Facility in December 2024. As a result, the Company determined to record a lease abandonment charge of $8.3 million to accelerate all amortization of the remaining carrying value of the operating lease ROU asset for the South San Francisco Facility, and impairment losses of $1.7 million related to leasehold improvements for this facility. There were no impairments to ROU assets and property and equipment for the fiscal years ended March 31, 2024 and 2023. The Company recorded the expenses associated with this facility exit in restructuring and other charges in the table above and within discontinued operations in the consolidated statements of operations and comprehensive loss. There were no restructuring and other charges incurred during fiscal 2023.


	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	(4,019)
Accrued restructuring costs included in accrued expenses and other current liabilities as of March 31, 2025	$	48


	Year Ended March 31,
	2025		2024		2023
	(in thousands)
Discontinued operations:
Net cash used in operating activities (includes related party amounts of $(10,561), $(1,363), and $(6,415), respectively)	$	(44,795)	$	(92,264)	$	(77,253)
Net cash used in investing activities	$	2,261	$	(645)	$	(1,624)
Net decrease in cash and cash equivalents from discontinued operations	$	(42,534)	$	(92,909)	$	(78,877)

Under ASC 205, the Company has a policy election to present cash flows from discounted operations as either 1) the total operating and investing cash flows of the discontinued operation, or 2) the depreciation, amortization, capital expenditures, and significant operating and investing noncash items of the discontinued operation. As of March 31, 2025, the Company has re-evaluated the presentation alternatives and elected to change the manner of presentation to the total operating and investing cash flows of the discontinued operation. This change does not have an impact on the consolidated financial statements.

On August 1, 2023, the Company completed the sale of Lemonaid Health Limited, its wholly-owned, indirect U.K. subsidiary. Lemonaid Health Limited was not a significant subsidiary, and the disposition of Lemonaid Health Limited did not constitute a strategic shift that would have a major effect on the Company’s operations or financial results. As a result, the results of operations for Lemonaid Health Limited were not reported as discontinued operations under the guidance of ASC 205. During the fiscal year ended March 31, 2024, the Company recorded $2.4 million of loss on the disposition of Lemonaid Health Limited and transaction-related costs within general and administrative expenses. There were no charges incurred during the fiscal year ended March 31, 2025.