Impairment and Disposal of Long-Lived Assets	6 Months Ended
Jun. 30, 2025
Asset Impairment Charges [Abstract]
Impairment and Disposal of Long-Lived Assets	Note 10. Impairment and Disposal of Long-Lived Assets As a result of the January 2025 Restructuring, the Company identified certain impairment indicators during the three months ended March 31, 2025. The triggering events included significant changes in the use of property and equipment and leased buildings and a sustained decline in the Company’s market capitalization as compared to the Company’s net asset value. In March 2025, the Company consolidated operations and concluded that certain leased buildings in Mountain View, California would not be used in long term operations. The Company also identified excess equipment that could be disposed and concluded that the equipment met the held for sale criteria in March 2025 and the carrying value should be written down to the estimated fair value, net of selling costs. As of June 30, 2025, all identified equipment has been sold or otherwise disposed. To assess impairment, the Company determined the asset groups based on the lowest level of identifiable cash flows under the Company’s strategic plans and evaluated for each of the asset groups. The consolidated operational group was assessed as a single asset group and determined to be recoverable. The carrying values of the remaining asset groups, consisting of buildings and their contents that would no longer be used going forward, were determined to not be recoverable. Accordingly, the Company determined the fair values for the unrecoverable asset groups using a discounted cash flow method, incorporating assumptions such as projected sublease income and a risk-adjusted discount rate, representing Level 3 nonrecurring fair value measurements. During the three months ended March 31, 2025, the Company recognized impairment charges of $21.9 million, including $12.9 million for property and equipment, $8.6 million for lease right-of-use assets, and $0.4 million for other long-lived assets and costs. During the three months ended June 30, 2025, and as a result of the Company’s continued focus to reduce costs and align its facilities and equipment with current and projected business needs, the Company terminated all building leases located in Mountain View, California and shortened the term of a lease located in Doylestown, Pennsylvania through the exercise of an early termination option. The Doylestown lease was fully paid and vacated as of June 30, 2025, resulting in the remeasurement and derecognition of the lease liability and operating lease ROU asset during the quarter. In April 2025, the Company entered into three lease termination agreements for three buildings with the respective landlords. In May 2025, the Company entered into a lease termination agreement for the last remaining building lease to become a fully remote company. The terminations covered all leased buildings and were effective during the quarter, with all leased spaces vacated as of June 30, 2025. As a result of the lease terminations, the Company paid termination fees totaling $32.1 million including brokerage costs and $0.6 million of security deposits recorded in other non-current assets related to the leases that were forfeited for a total of $32.7 million in termination fees. The Company derecognized lease liabilities of $43.2 million and operating lease ROU assets of $28.0 million associated with the terminated leases. The terminations resulted in a net loss of $17.5 million, inclusive of $1.1 million in brokerage costs, and is included in operating expenses for the three months ended June 30, 2025. In addition, the Company sold or disposed of all property and equipment located at its leased facilities during the three months ended June 30, 2025, consisting primarily of manufacturing and laboratory equipment and leasehold improvements. For the three months ended June 30, 2025, the Company recognized impairment and disposal of long-lived asset charges of $31.9 million, which consisted of non-cash charges totaling $31.0 million, including $16.4 million for lease right-of-use assets and $14.6 million for property and equipment. For the six months ended June 30, 2025, the Company recognized impairment and disposal of long-lived asset charges of $53.8 million, which consisted of non-cash impairment and disposal charges totaling $52.9 million, including $27.5 million for property and equipment, $25.0 million for lease right-of-use assets, and $0.4 million for other long-lived assets. The Company also incurred $0.9 million of cash charges during the three and six months ended June 30, 2025, primarily related to brokerage costs.

Impairment and Disposal of Long-Lived Assets

6 Months Ended

Jun. 30, 2025

Impairment and Disposal of Long-Lived Assets

Note 10. Impairment and Disposal of Long-Lived Assets

As a result of the January 2025 Restructuring, the Company identified certain impairment indicators during the three months ended March 31, 2025. The triggering events included significant changes in the use of property and equipment and leased buildings and a sustained decline in the Company’s market capitalization as compared to the Company’s net asset value. In March 2025, the Company consolidated operations and concluded that certain leased buildings in Mountain View, California would not be used in long term operations. The Company also identified excess equipment that could be disposed and concluded that the equipment met the held for sale criteria in March 2025 and the carrying value should be written down to the estimated fair value, net of selling costs. As of June 30, 2025, all identified equipment has been sold or otherwise disposed.

To assess impairment, the Company determined the asset groups based on the lowest level of identifiable cash flows under the Company’s strategic plans and evaluated for each of the asset groups. The consolidated operational group was assessed as a single asset group and determined to be recoverable. The carrying values of the remaining asset groups, consisting of buildings and their contents that would no longer be used going forward, were determined to not be recoverable. Accordingly, the Company determined the fair values for the unrecoverable asset groups using a discounted cash flow method, incorporating assumptions such as projected sublease income and a risk-adjusted discount rate, representing Level 3 nonrecurring fair value measurements. During the three months ended March 31, 2025, the Company recognized impairment charges of $21.9 million, including $12.9 million for property and equipment, $8.6 million for lease right-of-use assets, and $0.4 million for other long-lived assets and costs.

During the three months ended June 30, 2025, and as a result of the Company’s continued focus to reduce costs and align its facilities and equipment with current and projected business needs, the Company terminated all building leases located in Mountain View, California and shortened the term of a lease located in Doylestown, Pennsylvania through the exercise of an early termination option. The Doylestown lease was fully paid and vacated as of June 30, 2025, resulting in the remeasurement and derecognition of the lease liability and operating lease ROU asset during the quarter. In April 2025, the Company entered into three lease termination agreements for three buildings with the respective landlords. In May 2025, the Company entered into a lease termination agreement

for the last remaining building lease to become a fully remote company. The terminations covered all leased buildings and were effective during the quarter, with all leased spaces vacated as of June 30, 2025.

As a result of the lease terminations, the Company paid termination fees totaling $32.1 million including brokerage costs and $0.6 million of security deposits recorded in other non-current assets related to the leases that were forfeited for a total of $32.7 million in termination fees. The Company derecognized lease liabilities of $43.2 million and operating lease ROU assets of $28.0 million associated with the terminated leases. The terminations resulted in a net loss of $17.5 million, inclusive of $1.1 million in brokerage costs, and is included in operating expenses for the three months ended June 30, 2025. In addition, the Company sold or disposed of all property and equipment located at its leased facilities during the three months ended June 30, 2025, consisting primarily of manufacturing and laboratory equipment and leasehold improvements.

For the three months ended June 30, 2025, the Company recognized impairment and disposal of long-lived asset charges of $31.9 million, which consisted of non-cash charges totaling $31.0 million, including $16.4 million for lease right-of-use assets and $14.6 million for property and equipment. For the six months ended June 30, 2025, the Company recognized impairment and disposal of long-lived asset charges of $53.8 million, which consisted of non-cash impairment and disposal charges totaling $52.9 million, including $27.5 million for property and equipment, $25.0 million for lease right-of-use assets, and $0.4 million for other long-lived assets. The Company also incurred $0.9 million of cash charges during the three and six months ended June 30, 2025, primarily related to brokerage costs.

IGM Biosciences, Inc. 10-Q