Note 12 - Restructuring

9 Months Ended

Sep. 30, 2023

Notes to Financial Statements

Restructuring and Related Activities Disclosure [Text Block]

12. RESTRUCTURING

On May 9, 2023, the Company announced a plan to reduce expenses and re-align the organization’s structure by implementing a reduction in its current workforce impacting approximately 50 employees and 15 contractors, primarily in the Philippines. The headcount reduction is part of the Company's cost-saving initiatives to navigate challenges in the industry and to better position itself for future growth opportunities. The Company incurred $0.4 million and $1.6 million of restructuring charges during the three and nine months ended September 30, 2023, respectively.

The accounting for the restructuring costs follows the provisions of ASC 420, "Accounting for Costs Associated with Exit or Disposal Activities," which requires the recognition of a liability once the restructuring plan is communicated to affected employees and meets the criteria of being probable and reasonably estimable. The Company recognizes a liability for employee severance, other benefits, and involuntary terminations on the communication date.

The following table provides a summary of the restructuring costs incurred:

	Three Months Ended		Nine Months Ended
	September 30, 2023		September 30, 2023
	(in thousands)		(in thousands)
Employee severance	$	396	$	916
Retention bonus settled		—		411
Contract termination costs		—		285
Other restructuring costs		21		21
Total restructuring costs	$	417	$	1,633

The following table provides a summary of the Company's total restructuring reserve:

	Employee Severance			Retention Bonus			Contract Termination Costs			Other			Total
Balance – December 31, 2022	$	—		$	—		$	—		$	—		$	—
Charges		915			411			285			21			1,632
Usage-cash		(915	)		(411	)		(92	)		—			(1,418	)
Usage-non-cash		—			—			—			(21	)		(21	)
Balance – September 30, 2023	$	—		$	—		$	193		$	—		$	193

As of September 30, 2023, the Company has a liability of $0.2 million for restructuring costs, of which $0.1 million is included in accrued expenses and other current liabilities and $0.1 million is included in other liabilities on the consolidated balance sheet. There were no restructuring costs incurred during the year ended December 31, 2022.

The Company will continue to assess the restructuring plan's progress and provide updates as required in future financial statements if there are material changes to the initial estimates or additional significant restructuring activities.