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| RGDX > SEC Filings for RGDX > Form 8-K on 13-Feb-2009 | All Recent SEC Filings |
13-Feb-2009
Costs Associated with Exit or Disposal Activities, Change in Directors or P
On February 9, 2009, Response Genetics, Inc. ("RGI" or the "Company") implemented a reduction of workforce ("Reduction of Workforce") pursuant to which the Company is closing its United Kingdom testing facility to consolidate services at its CLIA-certified laboratory facilities in Los Angeles. Pursuant to the Reduction of Workforce, the Company has eliminated all of its employees in the United Kingdom, a total of 9 positions. The Company's lease for its United Kingdom testing facility is due to terminate on March 31, 2009. The Company has arranged to extend the lease, pursuant to its terms, for an additional month, in order to facilitate the winding down of its operations in the United Kingdom. The Reduction of Workforce will be substantially complete on March 31, 2009. The Company undertook the Reduction of Workforce as part of a strategic plan to increase operational efficiency in conjunction with its consolidation of its services at its Los Angeles facilities and it will not affect its genetic testing services or current partnership agreements.
In connection with the Reduction of Workforce, the Company currently expects to incur expenses associated with one-time termination benefits of approximately $250,000 and will include this amount in its December 31, 2008 financial results. Additionally, the Company will identify certain other costs and write-downs but it cannot estimate those costs at this time. When identified, the Company will also include these costs in its December 31, 2008 financial results. The Company anticipates the one-time termination benefits costs will be the only cash costs incurred and will be paid during 2009.
On February 9, 2009, in connection with the Reduction of Workforce, the Company terminated James Clark, its Chief Operating Officer. Mr. Clark will receive severance benefits pursuant to the terms of his employment agreement, as well as certain additional minimal severance payments required under United Kingdom employment laws.
The press release including announcement of the Reduction of Workforce and the termination of Mr. Clark attached hereto as Exhibit 99.1.
(d) The following exhibit is furnished with this report:
99.1 Press Release, dated February 13, 2009.
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