v3.25.2
Corporate Restructuring Plan
6 Months Ended
Jun. 30, 2025
Restructuring and Related Activities [Abstract]  
Corporate Restructuring Plan Corporate Restructuring Plan
In January 2023, the Board of Directors approved a restructuring plan (referred to as the “2023 Plan”) and the Company announced the consolidation of the ITIL-306 Phase 1 clinical trial and related manufacturing of CoStAR-TIL to its operations in Manchester, UK and stopped recruiting for the ITIL-306 clinical trial.
In January 2024, the Board of Directors approved a comprehensive restructuring plan, which included the closure of the Company’s UK manufacturing facility and clinical trial operations. In September 2024, the Board of Directors approved additional UK restructuring actions, which resulted in the elimination of the majority of the remaining UK workforce in the fall of 2024, with the remaining reduction and restructuring activities substantially completed by the end of 2024. Collectively, these actions are referred to as the “2024 Plan.”
The 2023 Plan and 2024 Plan are collectively referred to as the “Plan”.
Restructuring and Impairment Charges
As a result of the Plan, listing the Tarzana facility for sale and termination of its Thousand Oaks lease, the Company recorded charges of $0.5 million and $16.6 million within the condensed consolidated statements of operations and comprehensive loss in the line item “restructuring and impairment charges” for the three and six months ended June 30, 2025, respectively, and $0.5 million and $4.8 million for the three and six months ended June 30, 2024, respectively.
These charges relate to asset impairments, contract terminations, severance payments, employee-related costs and other gains incurred. The following table summarizes the restructuring and impairment (gain) loss by category (in thousands):
Three Months EndedSix Months Ended
June 30,June 30,
2025202420252024
Asset impairment for leasehold improvements$— $— $— $292 
One-time employee termination benefits— 247 — 978 
Contract terminations540 15 53 546 
Right-of-use asset impairment— — — 187 
Impairment of long-lived assets held for sale— 246 16,569 2,780 
Total restructuring and impairment charges$540 $508 $16,622 $4,783 
Restructuring Liability
As a result of the Plan, a restructuring liability was recorded in the condensed consolidated balance sheets under “Accrued expenses and other current liabilities” and was measured at the amount expected to be paid, or that was paid. During each of the three and six months ended June 30, 2025, the Company paid $1.4 million of restructuring costs and expects to pay the remainder of the restructuring costs by December 31, 2025.
The following table shows the liability related to the Plan (in thousands):
Employee BenefitsContract TerminationsTotal
Restructuring liability as of December 31, 2024
$131 $1,942 $2,073 
Payments(131)(1,300)(1,431)
Adjustments— (487)(487)
Total restructuring liability as of June 30, 2025
$— $155 $155