|12 Months Ended|
Dec. 31, 2022
Note 15 – Restructuring programme
On November 8, 2022, the Company announced that in order to extend the Company’s cash runway from early 2024 into early 2025, it was re-focusing the business on core programs and deprioritizing non-core programs. It also announced that it was to undertake a restructuring of the Company including a headcount reduction of approximately 25% to 30% to be completed in the first quarter of 2023.
The redundancy process was initiated in the fourth quarter of 2022 and completed in the first quarter of 2023 with a reduction of approximately 25% of global headcount. The redundancy packages to be paid to departing staff comprise a combination of contractual termination benefits, relating to payments that arise from terms of employment contracts and statutory redundancy pay, and one-time employee termination benefits that were provided or enhanced
specifically for this redundancy process. Due to the structure of the redundancy scheme and the different employment regulations affecting the Company’s U.K. and U.S. employees, some of the expense associated with the one-time employee termination benefits will be recognized over the remaining period of employee service to be rendered. Contractual termination benefits and other one-time employee termination benefits have been expensed and recognized in full in the year ended December 31, 2022. All expenses have been recognized in General and administrative expenses in the Statement of Operations.
The amounts expected to be incurred in relation to the redundancy programme are as follows:
A provision for restructuring costs has been recognised in current liabilities as all payments are expected to be settled in the first quarter of 2023. The table below is a summary of the changes in the restructuring provision in the consolidated balance sheets in the year ended December 31, 2022:
No impairment losses were recognised as a result of the restructuring.
The entire disclosure for restructuring and related activities. Description of restructuring activities such as exit and disposal activities, include facts and circumstances leading to the plan, the expected plan completion date, the major types of costs associated with the plan activities, total expected costs, the accrual balance at the end of the period, and the periods over which the remaining accrual will be settled.
Reference 1: http://www.xbrl.org/2003/role/disclosureRef