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Restructuring

9 Months Ended

Sep. 30, 2019

Restructuring And Related Activities [Abstract]

Restructuring

10. Restructuring

In September 2019, the Company’s Board of Directors approved a restructuring plan to reduce operating costs and better align the Company’s workforce with the needs of its business following the Company’s September 5, 2019 announcement regarding the low probability of resolving the clinical hold of ZGN-1061 in the near-term and that the Company will be seeking strategic alternatives.

Under the restructuring plan and a previously announced July 2019 restructuring, the Company reduced its workforce by 20 employees (approximately 63% of total employees) and closed its office in San Diego, California. Affected employees are eligible to receive severance payments and outplacement services in connection with the reduction. In the three months ended September 30, 2019, the Company recorded aggregate restructuring charges of approximately $4.0 million related to contract termination, closing of its office in San Diego, severance payments and other employee-related costs. The Company does not expect to incur any additional significant costs associated with this restructuring. During the three months ended September 30, 2019, $0.3 million of the estimated restructuring charges were paid. The Company expects the remaining accrued restructuring costs of $3.6 million will be paid in the next 12 months.

The following table shows the total amount expected to be incurred and the liability related to the 2019 restructuring as of September 30, 2019:

		One-Time
		Employee				Contract
		Termination				Termination				Total
		Benefits				Costs				Expenses
		(in thousands)
Accrued restructuring costs beginning balance		$	—			$	—			$	—
Restructuring charges incurred during the period			2,512				1,427				3,939
Amounts paid during the period			(248	)			(72	)			(320	)
Accrued restructuring costs as of September 30, 2019		$	2,264			$	1,355			$	3,619

The following table summarizes the restructuring charges by category for the periods indicated:

		Cash				Non-Cash				Total
		(in thousands)
Research and Development		$	3,846			$	80			$	3,926
General and Administrative			93				—			$	93
		$	3,939			$	80			$	4,019

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- Definition

The entire disclosure for restructuring and related activities. Description of restructuring activities such as exit and disposal activities, include facts and circumstances leading to the plan, the expected plan completion date, the major types of costs associated with the plan activities, total expected costs, the accrual balance at the end of the period, and the periods over which the remaining accrual will be settled.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 420
-URI http://asc.fasb.org/topic&trid=2175745

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