Business Restructuring

6 Months Ended

Jun. 30, 2011

11.	Business Restructuring

In January 2011, the Company announced it had restructured its neurodiagnostic activities to more efficiently focus its efforts on its installed base of active accounts, to shift distribution to independent sales representatives, and to reduce cash consumption. Twenty five employee positions were eliminated, primarily in sales. Charges totaled $2.2 million related to severance costs and inventory. Approximately $2.0 million, consisting of $208,000 in severance and $1.8 million in inventory charges, was recorded as of December 31, 2010 and the balance of approximately $185,000 in severance was recorded in the first quarter of 2011.

The following table provides a rollforward of the liability balance for restructuring actions taken in January 2011 and in December 2010, substantially all of which were recorded as sales and marketing expense in the Company’s Statement of Operations. The balance as of June 30, 2011 will be paid out in semi-monthly installments through October 31, 2011.

	Quarter Ended			Six Months Ended
	June 30, 2011			June 30, 2011

Balance – beginning	$	145,833		$	208,333
Accrual for severance		—			184,656
Severance payments made		(62,499	)		(309,655	)
Balance at June 30, 2011	$	83,334		$	83,334

- Definition

The entire disclosure for restructuring and related activities. Description of restructuring activities such as exit and disposal activities, include facts and circumstances leading to the plan, the expected plan completion date, the major types of costs associated with the plan activities, total expected costs, the accrual balance at the end of the period, and the periods over which the remaining accrual will be settled.

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