Note 12 - Restructuring

6 Months Ended

Jun. 30, 2025

Notes to Financial Statements

Restructuring and Related Activities Disclosure [Text Block]

12. RESTRUCTURING

On May 14, 2025, the Company announced a fixed cost reduction plan, which includes a workforce reduction affecting approximately 20 employees. The Company expects to substantially complete this reduction by the end of the third quarter of 2025. In connection with this plan, the Company recognized restructuring charges of approximately $1.8 million, primarily related to severance, during the three and six months ended June 30, 2025. Severance payments are expected to be made through the second quarter of 2026. Combined with other vendor-related cost reductions, the plan is expected to generate annualized savings of approximately $5 to $6 million.

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 incurred $0.6 million of restructuring charges during the year ended December 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 tables provide a summary of the restructuring costs incurred:

	Three Months Ended		Three Months Ended
	June 30, 2025		June 30, 2024
	(in thousands)		(in thousands)
Employee severance	$	1,795	$	132
Other restructuring costs(1)		—		(115	)
Total restructuring costs	$	1,795	$	17

	Six Months Ended		Six Months Ended
	June 30, 2025		June 30, 2024
	(in thousands)		(in thousands)
Employee severance	$	1,795	$	683
Other restructuring costs(1)		—		(108	)
Total restructuring costs	$	1,795	$	575

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

During the three and six months ended, the Company recognized restructuring charges of approximately $1.8 million, of which $1.0 million is recorded in Sales and Distribution expenses and $0.8 million is recorded in General and Administrative expenses, primarily related to severance.

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

	Employee Severance
Balance – December 31, 2024	$	—
Charges		1,795
Usage-cash		(363	)
Balance – June 30, 2025	$	1,432

As of June 30, 2025, the Company had a liability of $1.4 million for restructuring costs, which was included in accrued expenses and other current liabilities on the condensed consolidated balance sheet.

As of December 31, 2024, the Company did not have a liability for restructuring costs.

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.