Quarterly report pursuant to Section 13 or 15(d)

Restructuring

Restructuring

6 Months Ended

Jun. 30, 2023

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 CF-370 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 $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 restructuring costs were included in accounts payable and accrued and other current liabilities. Activity for the three and six months ended June 30, 2023 is summarized as follows (in thousands):


	Three Months Ended June 30, 2023			Six Months Ended June 30, 2023
Balance at beginning of period	$	6,927		$	7,143
Payments made		(3,315	)		(3,531	)
Balance at end of period	$	3,612		$	3,612

As of June 30, 2023, the Company had $3.6 million remaining in accounts payable and accrued and other current liabilities, which the Company expects to be paid by the end of the first quarter of 2024.