Restructuring Charges

6 Months Ended

Dec. 31, 2022

Restructuring Charges

Restructuring Charges

Note 4. Restructuring Charges

On December 15, 2022, the Company authorized a restructuring and cost savings plan (the “2022 Restructuring Plan”) to streamline and realign our operations to ensure the continued progression of our existing pipeline and future growth. The 2022 Restructuring Plan includes operational improvements and cost efficiencies as well as engagement with more external partners and technology providers, globally, to execute on our R&D plans and operations.

The total reduction in headcount, and the basis of the estimated severance costs, for the 2022 Restructuring Plan is expected to be approximately 60 positions. The Company expects the reduction in force to be completed by the end of Fiscal 2023. The Company estimates that it will incur approximately $3 million in severance-related costs in connection with the 2022 Restructuring Plan. A reconciliation of the changes in restructuring liabilities associated with the 2022 Restructuring Plan from June 30, 2022 through December 2022 is set forth in the following table:

	Employee
(In thousands)	Separation Costs
Balance at June 30, 2022	$	—
Restructuring charges		317
Payments		—
Balance at December 31, 2022	$	317

In connection with the shift in our R&D operations, the Company also anticipates exiting our State Road and Torresdale facilities in Philadelphia, Pennsylvania by the end of our current fiscal year. In the first quarter of Fiscal 2023, the Company recorded an impairment charge of $4.7 million to adjust the State Road facility and certain equipment to fair value less costs to sell and the remaining assets of $1.3 million were recorded in the assets held for sale caption in the Consolidated Balance Sheet. In the second quarter of Fiscal 2023, the Company recorded an impairment charge of $6.0 million to adjust the Torresdale facility to its approximate fair value.