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SEVERANCE ARRANGEMENTS - Note 5
9 Months Ended
Sep. 30, 2012
Restructuring and Related Activities [Abstract]  
SEVERANCE ARRANGEMENTS - Note 5

5. SEVERANCE ARRANGEMENTS

 

In April 2012, we reduced our workforce by approximately 25% which is consistent with our ingredient brand business model. During the nine months ended September 30, 2012, we recorded approximately $370,000 to research and development expense and sales, marketing, general and administrative expense and paid $328,000 relating to the severance agreements and other restructuring costs for these employees. We plan to make the remaining severance payments during the fourth quarter of 2012.

 

During the first half of 2011, we recorded $372,000 to research and development expense and sales, marketing, general and administrative expense and paid $341,000 for severance agreements related to a reduction in force that occurred in January 2011. The remaining payments of $31,000 for outplacement services expired unused, and during the three months ended September 30, 2011, we reduced the recorded expense related to severance agreements accordingly.