10. Organizational Restructuring

On March 3, 2026, the Company announced that its ampreloxetine Phase 3 clinical study (CYPRESS) in development for the treatment of symptomatic neurogenic orthostatic hypotension in patients with multiple system atrophy did not meet its primary endpoint in the Orthostatic Hypotension Symptom Assessment composite score. As a result of this outcome, the Company has decided to wind down its ampreloxetine program.

As the Company’s Board of Directors evaluates alternatives to maximize shareholder value, the Company is implementing an organizational restructuring (the “Restructuring”) to streamline costs and align its resources with its commercial focus on YUPELRI. As part of the Restructuring, the Company is reducing its headcount of 90 employees by approximately 50% through a reduction in its workforce. This reduction includes the wind-down of the R&D function and a decrease of approximately 50% in G&A employees. The Company estimates that it will incur approximately $5.0 million to $7.0 million in one-time total cash severance costs and approximately $3.5 million to $4.5 million in one-time total non-cash costs primarily related to the modification of equity-based awards for employees affected by the Restructuring.

Certain employees departed the Company on March 31, 2026, and the remainder of the impacted employees are expected to depart the Company over the next two quarters. For the three months ended March 31, 2026, the Company incurred a total of $3.6 million in Restructuring expenses, consisting of $1.7 million in R&D expenses and $1.9 million in G&A expenses, which is included on the condensed consolidated statements of operations within “Restructuring expenses”. Cash-related and non-cash related Restructuring expenses were $2.6 million and $1.0 million, respectively, for the three months ended March 31, 2026.

Selected information related to accrued cash-related Restructuring expenses (excludes share-based compensation expenses) was as follows:

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As of March 31, 2026, the Company did not recognize any Restructuring-related impairment charges associated with its long-lived assets.