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Wind-Down Expenses

6 Months Ended

Jun. 30, 2012

Note 6. Wind-Down Expenses

Rhode Island

In October 1999, we relocated to California from Rhode Island and established a wind down reserve for the estimated lease payments and operating costs of our scientific and administrative facility in Rhode Island. Even though we intend to dispose of the facility at the earliest possible time, we cannot determine with certainty a fixed date by which such disposal will occur. In light of this uncertainty, we periodically re-evaluate and adjust the reserve. We consider various factors such as our lease payments through to the end of the lease, operating expenses, the current real estate market in Rhode Island, and estimated subtenant income based on actual and projected occupancy.

The summary of the changes to our wind-down reserve related to this facility for 2012 and 2011 were as follows:


	January 1 to March 31, 2012			April 1 to June 30, 2012			January 1 to June 30, 2012			January 1 to December 31, 2011
Accrued wind-down reserve at beginning of period	$	1,683,000		$	1,418,000		$	1,683,000		$	2,644,000
Less actual expenses recorded against estimated reserve during the period		(300,000	)		(280,000	)		(580,000	)		(1,248,000	)
Additional expense recorded to revise estimated reserve at period-end		35,000			10,000			45,000			287,000

Revised reserve at period-end		1,418,000			1,148,000			1,148,000			1,683,000
Add deferred rent at period-end		401,000			350,000			350,000			452,000

Total accrued wind-down expenses at period-end (current and non-current)	$	1,819,000		$	1,498,000		$	1,498,000		$	2,135,000

Accrued wind-down expenses, current	$	1,428,000		$	1,498,000		$	1,498,000		$	1,361,000
Accrued wind-down expenses, non-current		391,000			—			—			774,000

Total accrued wind-down expenses	$	1,819,000		$	1,498,000		$	1,498,000		$	2,135,000