Restructuring Costs

9 Months Ended

Sep. 30, 2018

Restructuring Costs

Restructuring Costs

12.Restructuring Costs

In April 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 nine months ended September 30, 2018.

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

	Charges Incurred during the Nine Months Ended September 30, 2018		Amount Paid through September 30, 2018		Remaining Liability at September 30, 2018
Employee severance, benefits and related costs	$	786	$	582	$	204
Consolidation of facilities	98		98		—
Contract terminations	16		16		—
	$	900	$	696	$	204

There were no expenses related to the April 2018 restructuring recognized in the three months ended September 31, 2018. Of the expenses recognized in the nine months ending September 30, 2018, $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 $0.3 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.