Restructuring Costs

9 Months Ended

Sep. 30, 2018

Restructuring and Related Activities Disclosure [Text Block]

11. 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 nine months ended September 30, 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 June 30, 2018, the Company had paid all severance and other costs related to the restructuring activities.

At December 31, 2017, the Company had a clinical trial accrual balance related to the EC1456 phase 1b trial termination of $106,900. There were no material adjustments to the EC1456 phase 1b trial termination accrual balance during the three and nine months ended September 30, 2018, and payments made against the accrual in those periods were $14,800 and $106,900, respectively. As of September 30, 2018, there was no remaining accrual balance related to the restructuring activities and all payments had been made.