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RESTRUCTURING AND SEPARATION COSTS
9 Months Ended
Sep. 30, 2020
RESTRUCTURING AND SEPARATION COSTS  
RESTRUCTURING AND SEPARATION COSTS

7.RESTRUCTURING AND SEPARATION COSTS

On January 7, 2020, we announced that we would be relocating our corporate headquarters from Lynbrook, New York to Wilmington, Delaware as of April 7, 2020. On January 6, 2020, in connection with this relocation, we notified five employees and one consultant that their services would no longer be required effective March 31, 2020. On March 23,

2020, the five employees and one consultant were given separation agreements detailing the termination benefits to which they would be entitled.

As a result, we recorded a one-time restructuring charge of $1.1 million in the first quarter of fiscal 2020. The restructuring charge is associated with $0.9 million of one-time termination benefits that we expect to pay out in cash over a period of nine months and $0.2 million of one-time non-cash termination expenses associated with the acceleration of vesting of certain stock options and restricted stock units. The estimated liability for termination benefits was recorded at fair value during the first quarter of 2020 as a current liability in the consolidated balance sheet. These termination benefits consist of severance payments, reimbursement of benefits payments, and guaranteed consulting payments. Total charges and payments related to the restructuring plan recognized in the consolidated statement of operations are as follows:

Nine Months Ended

September 30, 

    

2020

Restructuring accrual, January 1, 2020

$

Termination costs

1,070,024

Facility exit costs

76,020

Payments

(945,612)

Stock compensation expense charged to additional paid-in-capital

(190,432)

Restructuring accrual, September 30, 2020

$

10,000

On April 6, 2020, the Company and Mr. J. Kevin Buchi mutually agreed that Mr. Buchi would step down as Chief Executive Officer and as a director of the Company, effective immediately. The Company and Mr. Buchi have entered into a separation agreement that details the termination benefits to which he is entitled. The Company recorded zero and $0.6 million in separation costs related to this agreement in general and administrative expenses for the three and nine months ended September 30, 2020, respectively.  The remaining accrual of $0.3 million at September 30, 2020 is included in accounts payable and accrued expenses and will be paid out over the next 6 months.