Quarterly report pursuant to Section 13 or 15(d)

Accrued Expenses and Other Current Liabilities

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Accrued Expenses and Other Current Liabilities
 3 Months Ended
Mar. 31, 2021
Accrued Liabilities and Other Liabilities [Abstract]  
Accrued Expenses and Other Current Liabilities Accrued Expenses and Other Current Liabilities
Accrued expenses and other current liabilities as of March 31, 2021 and December 31, 2020 consisted of the following (in thousands): 
  As of
  March 31, 2021 December 31, 2020
Research and development $ 7,393  $ 4,939 
Compensation and benefits 1,697  3,119 
General and administrative 966  771 
Sales and marketing 93  31 
Sales returns and allowances 3,630  1,794 
Medicaid rebates 83  119 
Lease liability, current 357  426 
Other 19  111 
Total accrued expenses and other current liabilities $ 14,238  $ 11,310 

The $2.5 million increase in the research and development accrual as of March 31, 2021 was driven by an increase in manufacturing activities for CERC-002 to support the program’s clinical development.

During the first quarter of 2021, the Company’s inventory on hand became short-dated (which the Company considers inventory within six months of expiration) due to manufacturing delays. The Company records a full allowance for the returns on the sale of short-dated inventory given the high likelihood of return, which was the main driver of the increase in sales returns and allowances as of March 31, 2021.