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Restructuring charges
 12 Months Ended
Dec. 31, 2013
Restructuring charges

8. Restructuring charges

On February 10, 2011, the Company announced that following receipt of the Complete Response letter from the United States Food and Drug Administration regarding the new drug application for AFREZZA, it implemented a restructuring to streamline operations, reduce operating expenses, extend the cash runway and focus its resources on securing the FDA’s approval of the NDA for AFREZZA. In connection with the restructuring, the Company reduced its total workforce by approximately 41% to 257 employees. The Company recorded charges of approximately $6.7 million for employee severance and other related termination benefits and recognized an initial liability of $6.7 million in February 2011, which approximated fair value.

 

     Workforce
Reduction		  

Restructuring Balance, February 10, 2011

    $ 6,659   

Cash payments

      (6,189 ) 

Adjustment

      (403 ) 
  

 

 

  

Restructuring Balance, December 31, 2011

    $ 67   

Adjustment

      (67 ) 
  

 

 

  

Restructuring Balance, December 31, 2012

    $ —   
  

 

 

  

During the year ended December 31, 2011, the Company adjusted the restructuring balance based on the election of certain termination benefits by a portion of the terminated employees.

The remaining restructuring balance as of December 31, 2011 consists of severance and related termination benefits for employees still to be terminated.

The net $6.3 million of costs associated with the restructuring are included in “Research and development” and “General and administrative” operating expenses in the consolidated statements of operations as $4.7 million and $1.6 million, respectively, for the year ended December 31, 2011.