Restructuring Costs

9 Months Ended

Sep. 30, 2016

Restructuring and Related Activities [Abstract]

Restructuring Costs

Note 7: Restructuring Costs

During the three months ended September 30, 2016, in an effort to consolidate operations into one primary office, the Company executed a plan to close its South African offices in Cape Town and Johannesburg and terminate approximately 50 resources based in those offices. All employees were notified of the restructuring during the month of September 2016. The Company recorded pre-tax restructuring expenses associated with severance, asset write offs and contract termination expenses of $294,249 in the third quarter of 2016 as follows:

Cost of services	$	83,544
Sales and marketing		102,904
Research and development		30,693
General and administrative		77,108
	$	294,249

At September 30, 2016, our remaining liability for restructuring expenses was as follows:

Accrued severance	$	116,332
Accrued contract termination fees		10,000
Accrual balance - September 30, 2016	$	126,332

A rollforward of the activity in the restructuring accrual during the period was as follows:

Accrual balance - June 30, 2016	$	-
Amounts charged to expense		294,249
Payments charged against accrual		(167,917	)
Accrual balance - September 30, 2016	$	126,332

Additionally, the company expects to incur additional charges of approximately $15,000 in the quarter ended December 31, 2016 related to abandonment of its office lease in Cape Town.