Quarterly report pursuant to Section 13 or 15(d)

Restructuring

Restructuring

9 Months Ended

Sep. 30, 2022

Restructuring and Related Activities [Abstract]

8. Restructuring

On July 29, 2022, the Company initiated a restructuring plan resulting in a reduction in workforce. The restructuring plan was designed to reduce costs and align resources with the Company’s anticipated product development milestones for exebacase and CF370 and to help preserve the value of the Company’s drug discovery operations. The restructuring reduced the Company’s workforce from 43 full-time employees as of June 30, 2022 to 27 full-time employees as of August 15, 2022, when the reduction was completed. The Company recognized a restructuring charge of approximately $7.7 million, including $1.6 million related to employee termination costs, including severance, health benefits and other related expenses from the workforce reduction, and $6.1 million from the write-off of prepaid manufacturing costs following the suspension of IV exebacase manufacturing activities.

The following table summarizes the restructuring related charges within the Company’s consolidated statements of operations where they were recorded during the three and nine months ended September 30, 2022 (in thousands):


	Amount
Employee termination costs and other related expenses	$	1,583
Write-off of prepaid manufacturing costs	$	6,136

Total	$	7,719

The restructuring costs were included in accounts payable and accrued and other current liabilities in the Company’s consolidated balance sheets. Activity for the nine months ended September 30, 2022 is summarized as follows (in thousands):


	As of September 30, 2022
Balance at beginning of period	$	—
Charge to expense		7,719
Payments made		(361	)

Balance at end of period	$	7,358

As of September 30, 2022, the Company had $7.4 million remaining in accounts payable and accrued and other current liabilities on its consolidated balance sheet, which will be paid by the end of the first quarter of 2024.