NeuBase Therapeutics, Inc. Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

Restructuring and Impairment

Restructuring and Impairment

9 Months Ended

Sep. 30, 2023

Restructuring and Impairment

Restructuring and Impairment

8. Restructuring and Impairment

Restructuring and impairment charges consist of the following:


	Three Months Ended		Nine Months Ended
	September 30, 2023		September 30, 2023
Restructuring	$	365,483	$	372,210
Impairment		857,109		857,109
Total restructuring and impairment	$	1,222,592	$	1,229,319

Restructuring

Restructuring charges relate primarily to the Company’s strategic restructurings announced in October 2022 to expand its focus to include the advancement of the differentiated gene editing capabilities of its platform and the announcement in August 2023 to halt further development of the Company’s programs and to conduct a comprehensive exploration of strategic alternatives focused on maximizing shareholder value.

The following table summarizes activity in the Company’s restructuring-related liability during the nine months ended September 30, 2023:


			Restructuring		Payments/
			Charges		Utilization
	Liability at		(Nine Months Ended		(Nine Months Ended		Liability at
	December 31, 2022		September 30, 2023)		September 30, 2023)		September 30, 2023
Research and development contract termination costs	$	311,110	$	2,490	$	(313,600)	$	—
Employee termination benefits		—		369,630		(184,535)		185,095
Other		4,922		90		(5,012)		—
Total Accrued restructuring	$	316,032	$	372,210	$	(503,147)	$	185,095

Impairment

In August 2023, as a result of halting further development of the Company’s programs as discussed above, the Company committed to a plan to actively sell certain chemistry and biology lab equipment, and as a result classified such equipment as held for sale as current assets on the consolidated balance sheet. The sale was completed in October 2023.

For the three and nine months ended September 30, 2023, the Company recorded long-lived impairment charges of $0.9 million, which reflects the difference between the carrying amount of the assets sold and their fair value, less costs to sell.