Restructuring Costs

6 Months Ended

Jun. 30, 2018

11.Restructuring Costs

On April 17, 2018, the Company announced a strategic shift to focus resources on its lead program edasalonexent. Consequently, the Company reduced its workforce by 40% during the quarter ended June 30, 2018. Pursuant to ASC 420, Exit or Disposal Cost Obligations, charges for employee severance, employee benefits, consolidation of facilities and contract terminations were recorded in the three months ended June 30, 2018.

The following table summarizes the impact of the April 2018 restructuring activities for the three months ended June 30, 2018 along with the current liability recorded in the balance sheet as of June 30, 2018 (in thousands):

	Charges incurred during the quarter ended June 30, 2018		Amount paid through June 30, 2018		Remaining liability at June 30, 2018
Employee severance, benefits and related costs	$	786	$	354	$	432
Consolidation of facilities	98		98		—
Contract terminations	16		16		—

	$	900	$	468	$	432

Of these costs, $0.4 million was recorded in the general and administrative section and $0.5 million was recorded in the research and development section of the accompanying condensed consolidated statement of operations.

The Company also recorded a net gain of $0.1 million in connection with the sale or exchange of assets disposed of during the consolidation and relocation of facilities. This net gain has been recorded as a component of other income, (net), in the accompanying consolidated statement of operations.