STAFF REDUCTIONS

12 Months Ended

Dec. 31, 2012

Staff Reductions Disclosure [Abstract]

Staff Reductions Disclosure [Text Block]

12. STAFF REDUCTIONS

On October 13, 2011, the Company’s Board of Directors (the “Board”) adopted a plan to preserve cash during our ongoing partnering efforts and effected a reduction from 18 employees to four employees. Included in the actions taken, was the termination of the employment of John M. Holliman, III, Executive Chairman, and Randolph C. Steer, MD, Ph.D. Each of these individuals has continued in his prior role as a consultant, rather than as employees and Les M. Taeger, Chief Financial Officer and Senior Vice President, has continued as an employee, but all will be at consulting/salary rates reflecting substantial reductions in compensation. All of these officers had also been eligible for an annual bonus based on individual and Company performance goals of up to 40% of their base compensation. The Board’s actions included termination of the Company bonus plan.

Severance payments authorized by the Board related to changes in employment and compensation totaled approximately $1,700,000, of which approximately $1,362,000 were required by employment agreements. Most severance payments occurred in the fourth quarter of 2011. No amounts related to the severance were accrued as of December 31, 2012 or 2011.