5. Restructuring

In January, 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 these reductions were completed in April 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. The estimated liability for these termination benefits was scheduled to be paid out over 18 months and was recorded at fair value during the first quarter of 2016.

During the third quarter of 2016, we recorded an additional restructuring charge for severance payments related to the termination of our remaining 8 employees. In addition, we recorded an adjustment for amendments for certain existing severances that reduced the amounts of benefits payable and allowed for the payment for all benefits by the end of 2016.

In total, we recorded a restructuring charge of $3.5 million during the nine months ended September 30, 2016. A total of $1.3 million has been paid through September 30, 2016, and the remaining $2.2 million is scheduled to be paid by December 31, 2016.

Total charges and payments related to the restructuring plans recognized in the consolidated statement of operations are as follows:


	Nine Months Ended
	September 30,
		2016
Restructuring accrual, January 1, 2016	$	-
Severance costs		3,499,960
Payments		(1,302,307)
Restructuring accrual, September 30, 2016	$	2,197,653

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 nine months ended September 30, 2016.