Restructuring Costs

12 Months Ended

Dec. 31, 2022

Restructuring and Related Activities [Abstract]

Restructuring Costs

Restructuring Costs

In June 2017, the Board approved a comprehensive plan to increase operating performance (the “2017 Plan”). The 2017 Plan was substantially completed by the end of the Company’s fiscal year ended December 31, 2017, and when combined with previous workforce reductions in the second quarter of fiscal 2017 reduced the Company’s workforce to approximately 86 employees at December 31, 2018. In making these changes, the Company prioritized customer support and development while consolidating operations and streamlining direct sales resources, allowing the Company to focus on the install base and develop alternate channels to the market. As part of this consolidation effort, the Company vacated a portion of its former Melville, NY office space during the three months ended June 30, 2018. During the fiscal year ended December 31, 2021, the Company incurred lease disposal-related costs for this property of $833,313. The Melville, NY lease which ended on April 30, 2021 with a gross annualized rental cost of $1.5 million, will not be replaced. The Company expects the remaining accrued severance-related costs of $127,475 as of December 31, 2022 to be paid once final settlement litigation is completed. Such litigation stems from the termination of three employees in France, one of which has been settled, and the remainder of which are expected to settle by December 31, 2022.

The following table summarizes the activity during 2021 and 2022 related to restructuring liabilities recorded in connection with the 2017, 2019 and 2020 Plans:

	Severance related costs			Facility and other costs			Total
Balance at December 31, 2020	$	239,444		$	75,466		$	314,910
Provisions/Additions		—			833,313			833,313
Translation Adjustment		(14,336	)		—			(14,336	)
Utilized/Paid		(90,445	)		(908,779	)		(999,224	)
Balance at December 31, 2021	$	134,663		$	—		$	134,663
Provisions/Additions		—			744			744
Translation Adjustment		(7,188	)		—			(7,188	)
Utilized/Paid		—			(744	)		(744	)
Balance at December 31, 2022	$	127,475		$	—		$	127,475

The severance and facility related liabilities are included within “accrued expenses” in the accompanying condensed consolidated balance sheets. The expenses under the 2017 Plan are included within “restructuring costs” in the accompanying condensed consolidated statements of operations.