Quarterly report pursuant to Section 13 or 15(d)

Excess Lease Liability

Excess Lease Liability
6 Months Ended
Jun. 30, 2014
Restructuring And Related Activities [Abstract]  
Excess Lease Liability

On August 21, 2008, Sonus Pharmaceuticals, Inc., or Sonus, completed a transaction, or the Arrangement, with 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 estimated value of the liability remaining with respect to excess facilities was $3.9 million as of December 31, 2013. In the six months ended June 30, 2014, with respect to excess facilities, $0.4 million was amortized into income resulting in a remaining liability of $3.5 million at June 30, 2014. 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,
of excess
lease facility
    Liability at
June 30,

Current portion of excess lease facility

   $ 1,081       $ 16      $ 1,097   

Long-term portion of excess lease facility

     2,825         (399     2,426   











   $   3,906       $   (383   $   3,523