REDUCTION IN FORCE

9 Months Ended

Sep. 30, 2012

REDUCTION IN FORCE

REDUCTION IN FORCE

7. REDUCTION IN FORCE

        In January and June 2012, the Company implemented restructuring plans resulting in force reductions. The Company took these steps to streamline the Company's infrastructure and lower overall operating expenses. In connection with these restructurings, the Company recognized expenses of approximately $119,000 during the nine months ended September 30, 2012 and had approximately $13,000 accrued at September 30, 2012 which will be paid by the end of the fourth quarter of 2012.

        In January, June and September 2012, the Company and certain officers of the Company mutually agreed to terminate their employment relationships. The Company recognized expenses of approximately $1.1 million during the nine months ended September 30, 2012 which will be paid in installments through the first quarter of 2016. At September 30, 2012, approximately $914,000 was accrued for this liability, of which approximately $490,000 was long-term in nature and recorded as "Other Long-Term Liabilities" on the Company's condensed consolidated balance sheet.