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Accounts Payable and Accrued Liabilities

6 Months Ended

Jun. 30, 2019

Accounts Payable and Accrued Liabilities

9. Accounts Payable and Accrued Liabilities

At June 30, 2019 and December 31, 2018, accounts payable and accrued liabilities consisted of the following (in thousands):

	June 30, 2019		December 31, 2018
	(unaudited)
Accounts payable ⁽¹⁾	$	2,778	$	2,359
Accrued compensation ⁽²⁾		1,970		2,456
Accrued liabilities ⁽³⁾		2,035		1,639
Other current liabilities		76		9
Total	$	6,859	$	6,463

⁽¹⁾	Includes $0.8 million of transaction costs related to the Asterias Merger (see Note 3) recorded outside of the business combination.
⁽²⁾	Includes $0.3 million of change of control and related transaction costs related to the Asterias Merger (see Note 3) recorded outside of the business combination.
⁽³⁾	Includes $0.3 million of transaction costs related to the Asterias Merger (see Note 3) recorded outside of the business combination.

In connection with the Asterias Merger, several Asterias employees were terminated as of the Asterias Merger date. Three of these employees had employment agreements with Asterias which entitled them to change in control and separation payments in the aggregate of $2.0 million, which such conditions were met on the Asterias Merger date. Accordingly, $2.0 million was accrued and recorded in general and administrative expenses on the merger date and paid in April 2019.

Additionally, BioTime entered into a plan of termination with substantially all other previous employees of Asterias with potential separation payments in the aggregate of $0.5 million. Termination dates for these individuals ranged from May 31, 2019 to June 28, 2019. These employees were required to provide services related to the transition and be an employee of the combined company as of their date of termination in order to receive separation benefits. Since the employees were required to render future services after the merger date, BioTime recorded the aggregate liability ratably over their respective service periods from the Asterias Merger date through the above termination dates, in accordance with ASC 420, Exit or Disposal Cost Obligations. As of June 30, 2019, a total of $0.3 million was accrued for these separation payments which represents the portion of the payments earned through June 30, 2019. This amount was paid in July 2019.

In connection with the planned relocation of BioTime’s corporate headquarters to Carlsbad, California, discussed in Note 15, in June 2019, BioTime entered into a plan of termination with certain BioTime employees with potential separation payments in the aggregate of $0.5 million. Termination dates for these individuals range from August 9, 2019 to September 30, 2019. These employees must provide services related to the transition of services and activities in connection with the relocation and be an employee of BioTime as of their date of termination in order to receive separation benefits. BioTime will record the aggregate liability ratably over their respective service periods from June through the above termination dates, in accordance with ASC 420.

As of June 30, 2019, a total of $0.2 million was accrued for these BioTime employee separation payments which represents the portion of the payments earned through June 30, 2019.