Corporate Restructuring Charges

3 Months Ended

Mar. 31, 2020

12. Corporate Restructuring Charges

On June 10, 2019, the Company announced a restructuring of its organization, including a 20% reduction in headcount, designed to focus its cash resources on commercializing Xerava. This reorganization included the elimination of its internal research function and an exploration of out-licensing opportunities for all of its pipeline of early-stage antibiotics and oncology product candidates. The Company expects the total costs associated with the restructuring to be $2.4 million, all of which the Company incurred during the three months ended June 30, 2019. The Company expects the restructuring liability to be paid by the third quarter of 2020. The restructuring charges consist primarily of severance and benefit costs and asset impairment costs, offset in part by stock-based compensation adjustments associated with award modifications.

The restructuring charges recorded during the year ended December 31, 2019 and the related liability balance as of March 31, 2020 for each major type of cost associated with this restructuring plan are as follows:

	Restructuring Expense			Cash payments			Non-cash expense			Restructuring Liability at March 31, 2020
Employee severance, benefits and related costs	$	2,130		$	(1,812	)	$	—		$	318
Asset impairments		335			-			(335	)		-
Compensation expense		(97	)		-			97			-
	$	2,368		$	(1,812	)	$	(238	)	$	318