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Corporate Restructuring Plan
 9 Months Ended
Sep. 30, 2024
Restructuring and Related Activities [Abstract]  
Corporate Restructuring Plan Corporate Restructuring Plan
In December 2022, the Board of Directors approved a strategic reprioritization of the Company’s preclinical and clinical development programs (referred to as the “2022 Plan”). In January 2023, the Board approved an additional restructuring plan (referred to as the “2023 Plan”) and the Company announced the consolidation of the ITIL-306 Phase 1 clinical trial and related manufacturing of CoStAR-TIL to its operations in Manchester, UK and stopped recruiting for the ITIL-306 clinical trial.
In January 2024, the Board of Directors approved a comprehensive restructuring plan, which included the closure of the Company’s UK manufacturing facility and clinical trial operations, as well as the cessation of the ITIL-306 clinical trial. In September 2024, the Board of Directors approved additional UK restructuring actions, which has resulted in the elimination of the majority of the remaining UK workforce, with the remaining reduction and restructuring activities anticipated to be largely completed by the end of 2024. Collectively, these actions are referred to as the “2024 Plan.”
The 2022 Plan, 2023 Plan and 2024 Plan are collectively referred to as the “Plan”.
Restructuring and Impairment Charges
As a result of the Plan, the Company recorded charges of $2.4 million and $7.1 million within the condensed consolidated statements of operations and comprehensive loss in the line item “restructuring and impairment charges” for the three and nine months ended September 30, 2024, respectively, and $46.3 million and $71.8 million for the three and nine months ended September 30, 2023, respectively.
The Company estimates that it will incur additional charges of up to $0.5 million by the end of 2024, including employee termination costs, severance and other benefits, and contract termination costs. The charges that the Company expects to incur in connection with the 2024 Plan are subject to a number of assumptions, and actual results may differ materially.
These charges relate to asset impairments, contract terminations, severance payments and other employee-related costs incurred. The following table summarizes the restructuring and impairment charges by category (in thousands):
Three Months EndedNine Months Ended
September 30,September 30,
2024202320242023
Asset impairment for leasehold improvements$51 $— $343 $2,644 
One-time employee termination benefits1,449 41 2,427 1,816 
Building and construction work in progress impairment— 41,542 — 41,542 
Contract terminations(1,282)— (736)1,888 
Right-of-use asset impairment640 128 827 7,724 
Impairment of long-lived assets held for sale1,504 4,572 4,285 16,233 
Total restructuring and impairment charges$2,362 $46,283 $7,146 $71,847 
Restructuring Liability
As a result of the Plan, the restructuring liability was recorded in the condensed consolidated balance sheets under “Accrued expenses and other current liabilities” and was measured at the amount expected to be paid, or that was paid. During the three and nine months ended September 30, 2024, the Company paid nil and $1.4 million of restructuring costs, respectively, and expects to pay the remainder of the restructuring costs by the end of 2024. The following table shows the liability related to the Plan (in thousands):
Employee BenefitsContract TerminationsTotal
Restructuring liability as of December 31, 2023
$— $3,136 $3,136 
Additions, net2,395 720 3,115 
Payments(978)(471)(1,449)
Adjustments— (1,349)(1,349)
Total restructuring liability as of September 30, 2024
$1,417 $2,036 $3,453