5. Restructuring

On January 19, 2016, we authorized the implementation of a 19 person reduction in staff to control operating expenses and reduce ongoing cash requirements. The actions associated with the reductions were completed in April 2016.

As a result of the reductions, we recorded a one-time restructuring charge of $2.0 million in the first quarter of fiscal 2016. The restructuring charge is associated with one-time termination benefits that we expect to pay out in cash. We paid $0.5 million during the first quarter of fiscal 2016 and expect to pay the remainder over a period of 18 months beginning April 2016. The estimated liability for termination benefits which will be paid out over 18 months was recorded at fair value during the first quarter of 2016. These termination benefits consist of a severance payment equal to 3 months’ salary or, in the case of certain senior executives, consist of benefits pursuant to the provisions of their employment agreements, and outplacement assistance. Total charges and payments related to the restructuring plan recognized in the consolidated statement of operations are as follows:


	Six Months Ended
	June 30,
		2016
Restructuring accrual, January 1, 2016	$	-
Severance costs		2,013,024
Payments		(741,735)
Accretion of liability		28,871
Restructuring accrual, June 30, 2016	$	1,300,160

Current portion, included in Accrued Liabilities, at June 30, 2016	$	994,819
Long-term portion, included in other liabilities, at June 30, 2016	$	305,341

In March 2016, we sold all of our laboratory equipment for proceeds of $152,756, which resulted in a loss on sale of equipment of $153,572 during the six months ended June 30, 2016.