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Subsequent Events
9 Months Ended
Sep. 30, 2021
Subsequent Events [Abstract]  
Subsequent Events SUBSEQUENT EVENTS
Restructuring

On October 8, 2021, our Board of Directors approved, and on October 12, 2021 we began implementing, a restructuring plan to reduce operating costs and better align our workforce with the needs of our business following the receipt of a CRL from the FDA on July 28, 2021 regarding our NDA for the control of serum phosphorus in CKD patients on dialysis, and the subsequent conclusion of an End of Review Meeting with the FDA on October 1, 2021. The restructuring plan actions are expected to be completed in December 2021.

Under the restructuring plan, we are reducing our workforce by approximately 100 employees (approximately 60%). Impacted employees received notice that their positions will be eliminated on December 15, 2021. The restructuring plan will result in the elimination of all positions in our research organization as well as the cessation of all research activities. At the time of departure from the Company, either on December 15, 2021, or earlier, impacted employees are eligible to receive severance benefits and Company funded COBRA premiums, contingent upon an impacted employee’s execution (and non-revocation) of a separation agreement, which includes a general release of claims against the Company.
In connection with the restructuring, we estimate that we will incur aggregate restructuring charges of approximately $4 million, which will be recorded primarily in the fourth quarter 2021, related to severance payments and other employee-related costs. We may also incur additional costs not currently contemplated due to events that may occur as a result of, or that are associated with, the reduction in workforce.
In addition, on October 8, 2021, the Board determined that it is in the best interests of the Company and its stockholder to put in place arrangements designed to provide that the Company will have the continued dedication and commitment of those employees, including executives, determined to be key to the restructuring and planned future operations of the Company, and
thus, not impacted by the reduction in force. The Board approved, and management has implemented a retention program consisting of cash payments and grants of RSUs to the Company’s employees not impacted by the reduction in force. As part of the retention plan we have entered into retention agreements with the retained employees, including the following named executive officers: Mike Raab, our Chief Executive Officer, Justin Renz, our Chief Financial Officer and Susan Rodriguez, our Chief Commercial Officer. Under those retention arrangements, each of Messrs. Raab and Renz and Ms. Rodriguez have received an RSU grant for 300 thousand, 250 thousand and 150 thousand shares, respectively. The RSUs will vest in full on June 1, 2022. Additionally, the retention agreements provide Messrs. Raab and Renz and Ms. Rodriguez the opportunity to earn cash bonuses upon the achievement of certain milestones in the amounts of $300 thousand, $250 thousand and $150 thousand, respectively.
Borrowing
During November 2021, in compliance with the terms of our Loan Agreement as discussed in Note 5, we made the first principal repayment on the Term Loan in the amount of $16.7 million.
At the Market Offerings Agreement
We sold 6.0 million shares of our common stock pursuant to the 2020 Open Market Sales Agreement between the dates of October 21, 2021 and November 5, 2021 for gross proceeds of $7.4 million at a weighted average sales price of approximately $1.23 per share. We did not sell any additional shares of our common stock after November 5, 2021 and through the date of filing this report on Form 10-Q.