In June 2023, the Company committed to exiting its health insurance vertical to increase focus on core verticals and implemented a workforce reduction plan (the “Reduction Plan”) to improve operating efficiency. The Reduction Plan includes the elimination of 175 employees, or approximately 28%, of the Company’s workforce. During the three months ended June 30, 2023, the Company incurred $3.8 million in severance charges in connection with the workforce reduction, consisting of cash expenditures for employee separation costs of $2.7 million that are expected to be paid over the next twelve months and non-cash charges for the modification of certain equity awards of $1.1 million. The exit of the health insurance vertical and the Reduction Plan are expected to be completed by the end of 2023.

The Company’s restructuring liability, which was included in accrued employee compensation and benefits, consisted of the following (in thousands):


	Employee			Non-cash
	Separation Payments			Compensation			Total
Accrued Balance at December 31, 2022	$	—		$	—		$	—
Expense		2,709			1,123			3,832
Payments		(107	)		—			(107	)
Non-cash		—			(1,123	)		(1,123	)
Accrued Balance at June 30, 2023	$	2,602		$	—		$	2,602

In connection with its decision to exit the health insurance vertical, the Company reassessed asset groupings and determined that certain long-lived assets including definite-lived intangible assets related to the health insurance vertical with a net book value of $1.1 million as of June 30, 2023, and the right-of-use asset related to the Evansville, Indiana lease, constituted a separate asset group based on the lowest level of separately identifiable cash flows. Furthermore, the decision to exit the health insurance vertical was a triggering event requiring the Company to perform an interim quantitative impairment assessment as of June 30, 2023 and the Company's estimate of undiscounted cash flows of the long-lived asset group was less than the carrying value. The Company estimated the fair values of assets subject to long-lived asset impairment based on the Company’s judgments about the assumptions that market participants would use in pricing the assets and as a result, the Company concluded that the carrying value of such assets was not impaired at June 30, 2023. In August 2023, the Company sold assets related to its health insurance vertical (see Note 12).