In connection with our joint decision to discontinue development of zandelisib outside of Japan, in December 2022, we announced a realignment of our clinical development efforts that streamlined our organization towards the continued clinical development of our two earlier clinical-stage assets, voruciclib and ME-344 (prior to its sale in October 2024).

In August 2024, we commenced the Strategic Alternatives RIF as discussed in our strategic alternatives announcement described in Note 1. Description of Business and Basis of Presentation. Including contractual pro-rata bonuses, we incurred charges of $5.9 million in retentions, severance and COBRA costs related to the termination of our employees due to our related wind down activities.

For each of the periods presented, employee termination benefits primarily represent severance related costs and payments. During the fiscal years ended June 30, 2026 and 2025, we recorded employee termination benefits of zero and $1.8 million within research and development expense, respectively. During the fiscal years ended June 30, 2026 and 2025, we recorded employee termination benefits of $0.1 million and $3.9 million within general and administrative expense, respectively.

The following table summarizes our activity related to employee termination benefits, included in accrued liabilities, in thousands:


	Employee Termination Benefits
Balance at June 30, 2024	$	21
Increase in accrued restructuring		5,734
Cash payments		(5,027	)
Balance at June 30, 2025	$	728
Increase in accrued restructuring		122
Cash payments		(850	)
Balance at June 30, 2026	$	—