Reduction in Staff

12 Months Ended

Dec. 31, 2015

Restructuring and Related Activities [Abstract]

Reduction in Staff

Reduction in Staff

In September 2015, we announced a staff reduction plan in order to reduce operating expenses and to conserve cash resources. The plan reduced our workforce by approximately 30%. As a result, we incurred $863,000 in costs related to severance benefits for the affected employees, including severance payments, limited reimbursement of medical insurance premiums, outplacement services and an extension of the post-termination option exercise period for the vested portion of the affected employees’ outstanding stock options. The staff reduction plan was completed by the end of 2015.

Of the $863,000 in costs recognized related to the staff reduction plan, which includes non-cash stock-based compensation costs of approximately $303,000 for the extension of the post-termination option exercise period, $654,000 and $209,000 have been charged to research and development and general and administrative expenses, respectively, in our consolidated statement of operations for the year ended December 31, 2015. During the year ended December 31, 2015, we paid $557,000 in severance benefits to separating employees related to the staff reduction plan.