Restructuring

9 Months Ended

Sep. 30, 2022

Restructuring

Restructuring

17. Restructuring

Following a strategic review and assessment of the Company’s operations and cost structure, on August 8, 2022, the Company announced a plan of restructuring and strategic re-alignment (the Restructuring Plan). As part of the Restructuring Plan, the Company began an assay redevelopment program with the ultimate objective of improving its ability to manufacture and deliver high-quality assays at scale. The Restructuring Plan aligns the Company’s investments to best serve the needs of its customers, focuses the Company’s innovation efforts on key platforms and provides a foundation for the Company’s entry into translational pharma and clinical markets, which it believes will be required to access new growth categories. In accordance with the Restructuring Plan, the Company implemented a workforce reduction, which was substantially completed by the end of the third quarter of 2022. The Company recorded charges in the three months ended September 30, 2022, consisting of one-time termination benefits for employee severance, benefits and related costs, all of which were cash expenditures.

The following shows the number of positions by function and by location eliminated in connection with the Restructuring Plan:

	North America	EMEA	Asia Pacific	Total
Cost of goods sold	21	—	—	21
Research and development	34	1	—	35
Selling, general and administrative	50	9	4	63
Total headcount	105	10	4	119

As part of the Restructuring Plan, the Company also performed an assessment of impairment for long-lived assets, including right-of-use assets, and recorded an impairment charge of $8.7 million. The impairment expense includes $7.7 million associated with the right-of-use and property and equipment at the Bedford facilities (see Note 12). Additionally, the Company recorded an impairment charge of $1.0 million for software costs related to projects that have been rationalized as part of the Restructuring Plan.

The following presents a rollforward of the restructuring reserve and provision activity (in thousands):

	Severance and Employee Benefit Costs		Other Restructuring Charges		Total
Balance at June 30, 2022	$	—	$	—	$	—
Charges		3,325		101		3,426
Cash payments		(2,995)		(101)		(3,096)
Foreign exchange		7		—		7
Balance at September 30, 2022	$	337	$	—	$	337