NOTE 15—SUBSEQUENT EVENTS

Strategic Reprioritization

On March 29, 2023, the Company’s Board of Directors approved a strategic reprioritization and corresponding reduction in workforce, designed to focus on the clinical development programs for MT-6402, MT-8421 and MT-0169, and preclinical activities related to the Company’s collaboration with Bristol Myers Squibb. The Restructuring will reduce the Company’s current workforce from approximately 222 full-time employees to approximately 50% of that number.  The Restructuring will result in the cessation of the Company’s MT-5111 clinical development program, and will focus the majority of the Company’s pre-clinical efforts around activities related to the Bristol Myers Squibb collaboration.  The Company estimates that it will incur approximately $0.4 million of costs in connection with the reduction in workforce related to severance pay and other related termination benefits. The Company communicated the workforce reduction on March 30, 2023 and expects the majority of the costs associated with the Restructuring to be incurred during the quarter ending June 30, 2023. The Company anticipates incurring additional costs related to the Restructuring, however, such costs cannot be reasonably estimated as of the time of the filing of this Annual Report on Form 10-K.

Collaboration Agreements

In March 2023, the research program for one of the collaboration’s targets has been completed and the related performance obligation has been deemed complete by the Company. At December 31, 2022, the Company had $25.8 million of deferred revenue, current related to the completed performance obligation.