Annual report pursuant to Section 13 and 15(d)

Excess Lease Liability

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Excess Lease Liability
 12 Months Ended
Dec. 31, 2013
Restructuring And Related Activities [Abstract]  
Excess Lease Liability

7. EXCESS LEASE LIABILITY

On August 21, 2008, Sonus Pharmaceuticals, Inc., or Sonus, completed a transaction (“the Arrangement”) with OncoGenex Technologies Inc., or OncoGenex Technologies, whereby Sonus acquired all of the outstanding preferred shares, common shares and convertible debentures of OncoGenex Technologies. Sonus then changed its name to OncoGenex Pharmaceuticals, Inc. Prior to the Arrangement, Sonus entered into a non-cancellable lease arrangement for office space located in Bothell, Washington, which is considered to be in excess of our current requirements. The liability is computed as the present value of the difference between the remaining lease payments due less the estimate of net sublease income and expenses and has been accounted for in accordance with ASC 805-20, “Business Combinations -Identifiable Assets and Liabilities, and Any Noncontrolling Interest.” This represents our best estimate of the liability. Subsequent changes in the liability due to changes in estimates of sublease and occupancy assumptions are recognized as adjustments to the related liability with an offset to restructuring (gain)/loss in future periods.

 

(In thousands)

    Liability at
December 31,
2012		      Amortization
of excess
lease facility		     Liability at
December 31,
2013		  

Current portion of excess lease facility

    $ 1,050       $ 31      $ 1,081   

Long-term portion of excess lease facility

      3,536         (711 )      2,825   
  

 

 

     

 

 

    

 

 

  

Total

    $ 4,586       $ (680 )    $ 3,906