4. RESTRUCTURING

With projected reduced operational demands as a result of the Collaboration Agreement with Janssen, on March 3, 2015, we announced an organizational resizing to reduce our workforce from 39 to 21 positions. The reduction in our workforce was substantially complete as of June 30, 2015. In connection with this restructuring, we expect to record aggregate restructuring charges of approximately $1,395,000 related to one-time termination benefits which are being recognized on a pro-rata basis commencing from the date of announcement over the specified remaining service periods for the employees affected by the restructuring. For the three and six months ended June 30, 2015 we recognized $941,000 and $1,347,000 in restructuring charges, respectively, for the pro-rata portion of the one-time termination benefits. These charges include $212,000 and $302,000 of non-cash stock-based compensation expense for the three and six months ended June 30, 2015, respectively, relating to the extension of the post-termination exercise period for certain stock options previously granted to employees affected by the restructuring from 90 days to one year from their respective termination dates. The remaining projected restructuring charges are expected to be recorded during the third quarter of 2015. We may incur other charges associated with this restructuring. Such charges, if any, will be recorded as they are determined. We expect this restructuring to be completed in 2015 and result in aggregate cash expenditures of approximately $1,088,000, of which $840,000 has been paid as of June 30, 2015.

The components relating to the restructuring, including the outstanding restructuring liability which is included in accrued restructuring charges on our condensed balance sheet as of June 30, 2015, are summarized in the following table:

(In thousands)	Employee Severance and Other Benefits
Beginning accrual balance as of December 31, 2014	$	—
Restructuring charges	1,347
Cash payments	(840		)
Non-cash stock-based compensation expense	(302		)

Ending accrual balance as of June 30, 2015	$	205