Restructuring Charges

3 Months Ended

Mar. 31, 2015

Restructuring Charges

Restructuring Charges

10.  Restructuring Charges

Restructuring charges incurred during the three months ended March 31, 2015 primarily consist of severance and other post-termination benefit costs resulting from the cost reduction program implemented by the Company in January 2015. These activities primarily consisted of 20% reduction of the workforce. Per ASC 420-10-05-1, Exit or Disposal Cost Obligations, include, but are not limited to involuntary termination benefits provided to employees under the terms of a one-time benefit arrangement that, in substance, is not an ongoing benefit arrangement or a deferred compensation contract, and certain contract termination costs. Restructuring costs are expensed during the period in which the Company determines it will incur those costs and all requirements of accrual are met. The Company recorded approximately $0.6 million in restructuring charges relating to such obligations during the first quarter, and expects to incur $0.2 million in restructuring charges relating to such obligations during the second quarter, all of which represents costs expected to be incurred during 2015. In addition, certain contract termination costs of $1.2 million were accrued as of December 31, 2014 relating to manufacturing activity that no longer had identifiable future benefit to the Company. 

(in thousands)		Contract termination costs - R&D		Salaries and benefits - R&D		Salaries and benefits - G&A		Total
Balance as of December 31, 2014	$	1,185	$	-	$	-	$	1,185
Accrued		-		522		82		604
Paid		(479)		(257)		-		(736)
Balance as of March 31, 2015	$	706	$	265	$	82	$	1,053

As disclosed in Note 9, the Company recorded stock based compensation expense of $0.4 million, classified as research and development expense, related to the fair value of stock options of a  former executive which were modified such that they did not expire upon termination.