Note 12 - Restructuring

9 Months Ended

Sep. 30, 2024

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

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 (reversals) of $(10) thousand and $0.6 million for the three and nine months ended September 30, 2024, 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 tables provide a summary of the restructuring costs incurred:

	Three Months Ended		Three Months Ended
	September 30, 2023		September 30, 2024
	(in thousands)		(in thousands)
Employee severance	$	396	$	(9	)
Retention bonus settled		—		—
Other restructuring costs(1)		21		(1	)
Total restructuring costs	$	417	$	(10	)

	Nine Months Ended		Nine Months Ended
	September 30, 2023		September 30, 2024
	(in thousands)		(in thousands)
Employee severance	$	916	$	674
Retention bonus settled		411		—
Other restructuring costs(1)		306		(109	)
Total restructuring costs	$	1,633	$	565

(1) Includes reversal of costs associated with a contract settlement during the three and nine months ended September 30, 2024.

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		683			—			10			693
Usage-cash		(671	)		(75	)		(9	)		(755	)
Usage-non-cash		(9	)		(118	)		(1	)		(128	)
Balance – September 30, 2024	$	3		$	—		$	—		$	3

As of September 30, 2024, the Company has a liability of $3 thousand for restructuring costs which are included in accrued expenses and other current liabilities on the condensed consolidated balance sheet. 

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 condensed 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.