3. Balance Sheet Detail (in thousands)

Property and Equipment

Property and equipment consist of the following:


	As of
	March 31,		December 31,
	2020		2019
Research and development equipment	$	150	$	158
Office equipment		59		59
Total property and equipment		209		217
Less accumulated depreciation		(28)		(17)
Property and equipment, net	$	181	$	200

Depreciation expense was $11 and less than $1 for the three months ended March 31, 2020 and 2019, respectively.

Accrued liabilities

Accrued liabilities consist of the following as of:


	March 31,		December 31,
	2020		2019
External research and development expenses	$	1,946	$	915
Professional services		400		158
Payroll related		17		160
Other		48		189
Total	$	2,411	$	1,422

In the first quarter of 2020, the Company directed its contract research organization (“CRO”) partners and other vendors working on the Phase 3 clinical trials of NB-01 to cease all work and has terminated its existing contract arrangements with each of them. The Company incurred termination expenses of approximately $675 in connection with these terminations which are included in the external research and development expenses line item in the above table. One CRO invoiced termination charges that the Company disputes. In accordance with ASC 450, Contingencies, the Company has determined that it is reasonably possible that a loss has occurred with respect these invoiced amounts and estimates the range of loss as $0 to $1,100. Since no amount in this range is a better estimate than any other amount within the range, the Company has not accrued any liability arising from potential losses relating to these disputed termination charges.

During the three months ended March 31, 2020, the Company recorded adjustments to research and development expenses related to clinical trial expenses that were not correctly recorded in prior periods. The net adjustments resulted in an increase of $186 in the Company’s net loss for the three months ended March 31, 2020, which the Company considers immaterial to all periods.