Note 11 - Restructuring

3 Months Ended

Mar. 31, 2024

Notes to Financial Statements

Restructuring and Related Activities Disclosure [Text Block]

11. 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 $1.6 million of restructuring charges during the year-ended December 31, 2023, respectively.

On February 8, 2024, the Company committed to a fixed cost-cutting plan, including a reduction in workforce which resulted in the termination of approximately 17 employees and 26 contractors globally. The Company recognized restructuring charges of $0.6 million for the three months ended March 31, 2024.

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
	March 31, 2024
	(in thousands)
Employee severance	$	551
Other restructuring costs		7
Total restructuring costs	$	558

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

	Employee Severance			Contract Termination Costs		Other			Total
Balance – December 31, 2023	$	—		$	193	$	—		$	193
Charges		551			—		7			558
Usage-cash		(309	)		—		—			(309	)
Usage-noncash		—			—		(4	)		(4	)
Balance – March 31, 2024	$	242		$	193	$	3		$	438

As of March 31, 2024, the Company has a liability of $0.4 million for restructuring costs, of which $0.3 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 three months ended March 31, 2023.

As of December 31, 2023, the Company had a liability of $0.2 million for restructuring costs, of which $0.1 million was included in accrued expenses and other current liabilities and $0.1 million was included in other liabilities on the consolidated balance sheet.

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.