Quarterly report pursuant to Section 13 or 15(d)

Restructuring Costs

v3.19.3
Restructuring Costs
9 Months Ended
Sep. 30, 2019
Restructuring And Related Activities [Abstract]  
Restructuring Costs

 

10.

Restructuring Costs

In June 2019, the Company announced a restructuring plan that included reducing staff and suspending development of its inflammasome disease candidate, CTS-2090, in order to extend the Company’s resources. As a result, during the three months ended June 30, 2019, the Company recognized one-time employee severance expenses of $1.2 million, which were included in accounts payable and accrued expenses on the balance sheet, and noncash stock compensation expenses related to accelerated vesting of certain employee stock options of $0.3 million, both of which were recorded as operating expenses on the statement of operations and comprehensive loss. As of September 30, 2019, the Company has paid $1.0 million of the accrued employee severance expenses of $1.2 million.

In September 2019, the Company announced a second restructuring plan that included reducing additional staff.  As a result, during the three months ended September 30, 2019, the Company recognized one-time employee severance expenses of $0.9 million, which were included in accounts payable and accrued expenses on the balance sheet, and noncash stock compensation expenses related to accelerated vesting of certain employee stock options of $0.3 million, both of which were recorded as operating expenses on the statement of operations and comprehensive loss.  In October 2019, the Company paid $0.8 million of the severance expenses.