Quarterly report pursuant to Section 13 or 15(d)

Reduction in Force

v2.4.1.9
Reduction in Force
 3 Months Ended
Mar. 31, 2015
Restructuring and Related Activities [Abstract]  
Reduction in Force
Reduction in Force

In March 2015, the Company initiated a reduction in force that will include seven staff members and four executives. Three of the executives will continue as employees during transition periods of varying lengths, depending upon the nature and extent of responsibilities to be transitioned or wound down. As of March 31, 2015, the specific terms of the transition and separation of two of the executives were still being determined.

During the three-month period ended March 31, 2015, the Company recognized approximately $1.4 million of net expense as a result of the reduction in force, which includes actual and estimated separation costs as well as the impact of accelerated vesting or forfeiture of certain equity awards resulting from the separation of $372,000.

A summary of changes in accrued separation costs during the three-month period ended March 31, 2015 is presented below:
Accrued separation costs, beginning of period
$
449,351

Payments related to May 2014 reduction in force
(405,187
)
Charges incurred with March 2015 reduction in force
1,039,598

Payments related to March 2015 reduction in force
(28,630
)
Accrued separation costs, end of period
$
1,055,132



The following table summarizes the remaining accrued separation costs, including estimated employer payroll tax obligations, related to the Company's reduction in force, which are included in accrued liabilities and other on the consolidated balance sheet as of March 31, 2015:
 
As of
March 31, 2015
Separation payments, including payroll taxes
$
964,013

Estimated cost of continuing healthcare coverage
91,119

 
$
1,055,132