Note 9. Restructuring Charges

A description of the Company’s restructuring initiatives and their related costs is provided below.

2025 Restructuring Plans

In January 2025, the Company announced a strategic update to halt further development of imvotamab and IGM-2644 and commence a process to evaluate potential strategic alternatives. The Company also announced a reduction in workforce by approximately 73% (the January 2025 Restructuring) to preserve cash. In April 2025, the Company implemented an additional 80% reduction in its remaining workforce (the April 2025 Restructuring) and subsequently closed the lab and office facilities. In connection with the January 2025 Restructuring and the April 2025 Restructuring, the Company recognized restructuring charges of $2.1 million and $4.0 million during the three and six months ended June 30, 2025, respectively.

During the three months ended June 30, 2025, the restructuring charges included severance and one-time termination payments of $4.0 million and contract termination and other costs of $0.6 million offset by a reversal of previously recognized non-cash severance compensation of $1.2 million and incentive and stock-based compensation expense of $1.3 million. During the six months ended June 30, 2025, the restructuring charges included severance and one-time termination payments of $7.9 million and contract termination and other costs of $0.6 million offset by a reversal of previously recognized non-cash severance compensation of $2.2 million and incentive and stock-based compensation expense of $2.3 million.

Additionally, in connection with the January 2025 Restructuring and the April 2025 Restructuring, the Company recognized $31.9 million and $53.8 million in impairment and disposal of long-lived assets charges during the three and six months ended June 30, 2025. See Note 10 – Impairment and Disposal of Long-Lived Assets for further details.

2024 Restructuring Plan

In September 2024, the Company announced a strategic pivot to focus exclusively on autoimmunity. The Company also announced an extension of cash runway, driven by a reduction in workforce and a reduction in future spending on the research and development of aplitabart and other oncology candidates (the 2024 Restructuring). In connection with the 2024 Restructuring, the Company recognized no restructuring charges during the three and six months ended June 30, 2025. During the three and six months ended June 30, 2024, the Company recognized no restructuring charges and $0.2 million, respectively.

As part of the 2024 Restructuring, the Company's Chief Executive Officer (CEO) and Chief Scientific Officer (CSO) resigned and entered into Transition and Consulting Agreements (TC Agreements) to provide consulting services through September 2026 and March 2026, respectively. The CEO and CSO will receive cash payments of approximately $0.8 million and $0.5 million, respectively, under the TC Agreements, which were recognized as severance and one-time termination expenses upon approval of the agreements. See Note 12 – Related Party Transactions for additional information.

In connection with the restructuring activities discussed above, the Company recognized restructuring charges of $2.1 million and $4.0 million, respectively, during the three and six months ended June 30, 2025 and $0.2 million during the six months ended June 30, 2024. The Company did not recognize any restructuring charges during the three months ended June 30, 2024.

As of June 30, 2025 and December 31, 2024, $2.0 million and $3.0 million of the restructuring liability, respectively, was classified as current within accrued liabilities and $0.4 million of the restructuring liability as of December 31, 2024 was classified as non-current within other liabilities on the condensed balance sheets.