Restructuring Charges

9 Months Ended

Sep. 30, 2014

Note 7.Restructuring Charges

During 2013, the Company initiated reductions in force to control costs and improve the focus of its operations in order to achieve future profitability and conserve cash. As of December 31, 2013, less than $0.1 million of these costs were accrued and unpaid.

During the nine months ended September 30, 2014, the Company implemented further actions which resulted in restructuring charges for severance and related costs of $2.6 million, which included stock option modification costs of $0.1 million recorded within additional paid-in capital in the consolidated balance sheets. The liability at September 30, 2014 of $1.4 million is expected to be paid primarily in the fourth quarter of 2014.

Changes in the Company’s restructuring liability, which consist primarily of severance and related costs, included in amounts reported as other current liabilities, are as follows:

	(In thousands)
Balance at December 31, 2013	$	43
Severance and related costs	2,592
Cash payments	(1,226		)
Balance at September 30, 2014	$	1,409