Restructuring Costs

3 Months Ended

Mar. 31, 2018

Restructuring and Related Activities Disclosure [Text Block]

10. Restructuring Costs

In June 2017, the Company refocused its clinical development efforts and aligned its resources to focus on the Company’s highest value opportunities while maintaining key capabilities. The Company’s restructuring activities included a reduction of its workforce by approximately 40%, as well as stopping enrollment in its EC1456 phase 1b trial as the assessment of trial data did not yield the level of clinical activity necessary to support continued advancement of EC1456. In December 2017, the Company stopped enrollment in its EC1456 ovarian cancer surgical trial. Pursuant to ASC Topic 420, Exit or Disposal Cost Obligations, the Company recorded $2.3 million of restructuring expenses in the second quarter of 2017 as follows:

included in research and development expenses were expenses for employee termination benefits of $0.9 million, $0.9 million for the remaining EC1456 phase 1b trial expenses, including site close-out expenses, $0.3 million related to other restructuring expenses, and $0.1 million related to fixed asset impairment charges; and

included in general and administrative expenses were expenses for employee termination benefits of $0.1 million.

As of March 31, 2018, the Company had paid all severance and other costs related to the restructuring activities, and had a clinical trial accrual balance related to the EC1456 phase 1b trial termination of $23,300, which is expected to be fully paid by the end of the second quarter of 2018.

The following table summarizes the remaining restructuring accruals for the three months ended March 31, 2018:


	EC1456
	Phase 1b Trial
	Termination
	Accrual
Balance, January 1, 2018	$	106,900
Amounts paid in the three months ended March 31, 2018		(83,600)
Balance, March 31, 2018	$	23,300