Restructuring

6 Months Ended

Jun. 30, 2022

Restructuring and Related Activities [Abstract]

Restructuring

RESTRUCTURING

In February 2022, the Company announced a new strategic business plan that includes a restructuring of its business to discontinue the integrated communications and collaboration platform, Spok Go®, eliminate all associated costs and optimize the Company’s existing structure to drive continued cost improvement. As part of the restructuring program, the Company initially estimated elimination of approximately 175 positions, primarily in research and development, but also in professional services, selling and marketing, and back-office support functions. The Company currently expects total eliminations of approximately 150 positions, with the majority of positions having been terminated as of June 30, 2022. The following table provides a summary of our updated cost estimates by major type of expense associated with the strategic business plan. The restructuring activities associated with these changes are substantially complete, and we expect the remainder to be completed in the second half of 2022.

	Total Estimated Amount to be Incurred
Strategic Business Plan Estimates	(Dollars in millions)
Severance and personnel related costs	$5.5 million to $5.8 million
Contractual terminations	$0.5 million to $0.7 million
Total severance and restructuring related charges	$6.0 million to $6.5 million

For the three and six months ended June 30, 2022, the Company incurred total severance and restructuring costs of $0.5 million and $4.9 million respectively, which is included within the Condensed Consolidated Statement of Operations. These costs are as follows:

	For the Three Months Ended June 30,		For the Six Months Ended June 30,
(Dollars in thousands)	2022		2022
Severance and personnel related costs	$	349	$	4,346
Contractual terminations	101		599
Total severance and restructuring costs	$	450	$	4,945

A summary of activity for the six months ended June 30, 2022, for restructuring-related liabilities associated with the strategic business plan, which is included within accrued compensation and benefits and other current liabilities within the Condensed Consolidated Balance Sheet, is as follows:

	(Dollars in thousands)
Balance at December 31, 2021	$	—
Restructuring and other charges	4,495
Payments	(34)
Non-cash adjustment	(124)
Balance at March 31, 2022	$	4,337
Restructuring and other charges	$	525
Payments	(2,302)
Non-cash adjustment	(188)
Balance at June 30, 2022	$	2,372