On May 5, 2025, the Company’s board of directors approved the wind down of the Company’s then clinical and manufacturing operations and the initiation of a process to explore strategic alternatives to maximize shareholder value (referred to as the “Restructuring Plan”). The Company publicly announced this plan on May 8, 2025.

In conjunction with the Restructuring Plan, the Company announced a reduction of its workforce by 154 full-time employees, or approximately 99% of the Company’s then-current employee base. Total severance and benefit costs incurred as of June 30, 2025 were $14.1 million. These costs were recognized in accordance with either ASC 712 or ASC 420, depending on the agreements with impacted employees. An additional $0.2 million of costs will be recognized in future periods through August 15, 2025, for certain costs which met the criteria for one-time termination benefits and require employees to provide future service.

As discussed in Notes 5 and 9, in connection with the Restructuring Plan, the Company sold certain long-lived assets as well as abandoned a right-of-use asset and other property and equipment. The disposals and abandonments resulted in a loss on disposal of $3.3 million, accelerated depreciation of $1.5 million, and accelerated amortization of right-of-use assets of $11.2 million, all of which were incurred during the three months ended June 30, 2025. Management concluded that the disposals do not meet the criteria for discontinued operations as they do not represent a strategic shift that will have a major effect on the Company’s operations and financial results.

The Company incurred a total of $30.7 million of restructuring costs in the three and six months ended June 30, 2025. A summary of the restructuring costs recorded in the condensed consolidated statements of operations and comprehensive loss for both the three and six months ended June 30, 2025 is as follows:


	Three and Six Months Ended June 30, 2025
(in thousands)	Severance and Benefits Costs		Stock-based Compensation		Accelerated Depreciation on Long-lived Assets		Accelerated Amortization on Right-of-use Assets		Loss on Disposal of Long-lived Assets		Total Restructuring Cost Recorded
Research and development expense	$	8,957	$	—	$	1,230	$	10,159	$	3,303	$	20,346
General and administrative expense		5,188		549		284		1,064		—		10,388
Total restructuring costs	$	14,145	$	549	$	1,514	$	11,223	$	3,303	$	30,734

The following table provides details of the severance and benefit costs with the remaining balance of the liability recorded in accrued liabilities on the condensed consolidated balance sheets as of June 30, 2025 (in millions):


(in thousands)	Restructuring Liability
Restructuring costs	$	14,145
Cash payments		(2,631	)
Liability included in accrued liabilities at June 30, 2025	$	11,514