Restructuring

6 Months Ended

Jun. 30, 2022

Restructuring and Related Activities [Abstract]

Restructuring

Restructuring

In the first quarter of 2022, the Company conducted a strategic review of its operations. The results of this review resulted in the following actions being taken: (1) the closure of the Company’s production center and warehouse in Quincy, IL; (2) the termination of engineering activities in the Company’s Boston office; (3) elimination of all of the Company’s plug-in hybrid products and a substantial majority of the Company’s hybrid drivetrain products; (4) a reduction of the Company’s workforce of 51 employees; and (5) the termination of the Company’s partnership with eNow. The Company recognized a total charge of $2,358 related to these activities in the first quarter of 2022.

In connection with the Company’s reduction in its workforce, the Company incurred severance charges totaling $840 of which $725 was paid during the three months ended March 31, 2022 and $67 was paid in the three months ended June 30, 2022 and the remainder will be paid in the third quarter of 2022. The severance charges were included in selling, general and administrative expenses in the condensed consolidated statement of operations. The remaining unpaid amount of $48 is included in accrued expenses and other current liabilities in the condensed consolidated balance sheet at June 30, 2022.

In connection with the Company’s decision to exit certain product lines, the Company incurred an inventory obsolescence charge, included in cost of revenues, of $1,518 in the first quarter of 2022. In the second quarter of 2022, the Company recognized an additional $193 related to an adjustment of the inventory obsolesence allowance.