v3.26.1
Restructuring Activities
6 Months Ended 12 Months Ended
Jun. 30, 2026
Dec. 31, 2025
Restructuring and Related Activities [Abstract]    
Restructuring Activities
16. Restructuring Expenses
On May 31, 2026, the Company’s board of directors approved a restructuring plan to significantly reduce the Company’s operating expenses and preserve capital following the discontinuation of pociredir. The restructuring plan reduced the Company’s workforce by approximately 85%, from 57 to nine full-time employees, and was substantially completed during the second quarter of 2026. The Company communicated the workforce reduction on June 4, 2026.
During the three and six months ended June 30, 2026, the Company recorded aggregate restructuring charges of $4.3 million, consisting primarily of employee severance, benefits and related costs, of which $2.1 million was paid during the period. Restructuring charges are presented as a separate component of operating expenses. The Company recognizes
one-time
employee termination benefits in accordance with ASC 420; for employees required to render service beyond the minimum retention period, the related cost is recognized ratably over the future service period, and the Company therefore expects to recognize additional restructuring charges during the third quarter of 2026. The charges described above do not include the impairment of long-lived assets recorded in connection with the restructuring, which is described in Note 5, “Property and Equipment, Net.”
The following table summarizes the Company’s restructuring activity (in thousands):
 
Accrued restructuring charges as of December 31, 2025
   $ —   
Restructuring charges incurred during the period
     4,318  
Amounts paid during the period
     (2,098
  
 
 
 
Accrued restructuring charges as of June 30, 2026
   $ 2,220  
  
 
 
 
In June 2026, the Compensation Committee approved cash retention arrangements for the Company’s nine remaining full-time employees, with aggregate potential payments of approximately $1.4 million. Payment of the retention amounts is contingent upon the occurrence of specified strategic-transaction and/or qualifying termination events and, where applicable, the completion of transitional duties. The Compensation Committee also approved certain additional severance protections for the remaining employees, including enhanced
change-in-control
benefits for employees at the Vice President level and above in the event of a qualifying termination within the six months preceding a change in control. No expense or liability was recognized for these arrangements as of June 30, 2026 because the applicable triggering events were not considered probable. The Company will recognize compensation expense when the applicable recognition criteria are met.
16. Restructuring Activities
In September 2024, the Company announced a plan to reprioritize research and development activities to focus on advancing pociredir for the treatment of sickle cell disease, novel therapeutic agents for the treatment of DBA, and the Company’s early discovery programs. The plan reduced the Company’s workforce from 80 to 51 full-time employees, including a reduction of positions across both research and development and general and administrative functions. During the year ended December 31, 2024, the Company recorded aggregate
 
restructuring charges of $2.1 million related to severance and other employee-related costs, of which $1.7 million was paid during the year ended December 31, 2024. During the year ended December 31, 2025, the Company paid $0.4 million of restructuring charges.
 
Accrued restructuring charges as of December 31, 2023
   $ —   
Restructuring charges incurred during the period
     2,063  
Amounts paid during the period
     (1,686
  
 
 
 
Accrued restructuring charges as of December 31, 2024
   $ 377  
  
 
 
 
Restructuring charges incurred during the period
     —   
Amounts paid during the period
     (377
  
 
 
 
Accrued restructuring charges as of December 31, 2025
   $ —