On June 11, 2020, following the announcement regarding the topline results from the phase 2a clinical trial of OP0201, Eledon announced that its board of directors approved a plan to reduce the size of its workforce. The workforce reduction, which was completed in June 2020, was designed to reduce the Company’s operating expenses while it is conducting a review of development and strategic alternatives.

On September 3, 2020, the board of directors (the “Board”) of the Company accepted the resignation of Gregory Flesher as the Company’s Chief Executive Officer and a member of the Board. Mr. Flesher’s resignation was effective as of the close of business on September 4, 2020. The resignation of Mr. Flesher was not the result of any dispute or disagreement with the Company on any matter relating to the Company’s operations, policies or practices. Concurrent with his resignation, Mr. Flesher entered into a consulting agreement with the Company pursuant to which he will provide consulting and transition-support services as requested by the Company at an hourly rate consistent with his target compensation.

For the year ended December 31, 2020, Eledon incurred $2.3 million in expenses related to the workforce reduction and expects to pay these amounts in the next six months.

Total liability for restructuring expenses and their utilization are summarized as follows (in thousands):

	For the Year Ended December 31,
	2020
Accrued restructuring charges at beginning of period	$	—
Charged		2,282
Paid		(2,270	)
Accrued restructuring charges at end of period	$	12