On September 27, 2021, in order to lower its existing cost structure in connection with the realignment of its business strategy, the Company announced a strategic reduction in force and notified approximately 60 full-time employees of its intention to terminate their services on or, in most cases, before November 30, 2021. Certain of the notified employees had employment agreements that provided for enhanced severance benefits. The severance benefits, apart from certain continuing company-paid health care benefits for up to twelve months, will be paid during the fourth quarter of 2021.

The Company expensed the following costs associated with these future termination benefit payments resulting from the strategic reduction in force:


	September 30,
	2021
Research and Development	$	2,248
General and Administrative		1,289
Total Severance Expense	$	3,537

Amounts remaining to be expensed after September 30, 2021, for a limited number of employees continuing to render service through November 30, 2021, are di minimis. At September 30, 2021, the accrued liability balance associated with the strategic reduction in force announced in the third quarter of 2021 is $3.5 million and is expected to be paid in the fourth quarter of 2021.