7. Corporate restructuring

In October 2021, the Company announced a restructuring plan that resulted in a reduction of the Company’s workforce by 11 positions, or approximately 26% of the Company’s then workforce. A majority of these employees’ separation from the Company occurred in mid-October 2021, and the remaining affected employees transitioned by the end of 2021. As a result, the Company incurred costs of $1.4 million related to severance benefits for the affected employees, including severance payments, limited reimbursement of medical insurance premiums, outplacement services and other restructuring costs and expenses. Each affected employee’s eligibility for the severance benefits was contingent upon such employee’s execution (without revocation, as applicable) of a separation agreement, which includes a general release of claims against the Company. The restructuring plan was completed by the end of 2021.

Of the $1.4 million in costs recognized related to the restructuring plan, $0.9 million and $0.5 million have been charged to research and development and general and administrative expenses, respectively, in the accompanying consolidated statement of operations and comprehensive loss for the year ended December 31, 2021. During the year ended December 31, 2021, the Company paid $0.5 million in severance benefits to separating employees related to the restructuring plan. At December 31, 2021, unpaid severance costs of $0.9 million are included in accrued expenses and other current liabilities in the accompanying consolidated balance sheet and are expected to be paid during the first quarter of 2022.