RESTRUCTURING CHARGES

9 Months Ended

Sep. 30, 2023

RESTRUCTURING CHARGES.

RESTRUCTURING CHARGES

24. RESTRUCTURING CHARGES

In June 2022, the Board of Directors approved a strategic integration and cost optimization initiative that includes a global workforce reduction, facilities consolidation, and other operational savings measures. As part of the facilities consolidation, the Company approved plans to sell two facilities and relocate operations from those locations to existing facilities. The purpose of the Initiative is to streamline the Company’s operational structure, reducing its operating expenses and managing its cash flows.

In January 2023, the Company committed to additional actions to continue and expand the Initiative, resulting in an estimated $19.6 million to $26.0 million of total restructuring costs.

During the nine months ended September 30, 2023 and 2022, the Company recorded the following activity related to the Initiative in accrued expenses and other current liabilities on the balance sheet (in thousands):

	Nine Months Ended September 30,
	2023		2022
Accrued expenses, beginning of period	$	1,095	$	—
Restructuring charges		6,610		12,782
Cash payments		(2,317)		(1,478)
Stock-based compensation		—		(7,313)
Inventory write-off		(2,484)		(3,085)
Accrued expenses, end of period	$	2,904	$	906

During the three and nine months ended September 30, 2023, the Company recorded restructuring charges of $0.1 million and $6.6 million, respectively, related to employee severance, benefits and related costs, inventory write-offs, royalty expenses associated with discontinued product offerings, and facility consolidations which were expensed as follows (in thousands):

	Three Months Ended September 30,				Nine Months Ended September 30,
	2023		2022		2023		2022
Cost of sales	$	16	$	3,085	$	3,221	$	3,126
Research and development		187		—		3,085		8,117
Sales and marketing		(62)		—		68		667
General and administrative		1		—		236		489
Interest and other (expense) income, net		—		—		—		383
Total restructuring charges	$	142	$	3,085	$	6,610	$	12,782