Restructuring Costs

In the third quarter of 2013, the Company adopted the 2013 Plan to better align the Company’s cost structure with the skills and resources required to more effectively execute the Company’s long-term growth strategy and to support revenue levels the Company expected to achieve on a go forward basis. In connection with the 2013 Plan, the Company eliminated over 100 positions worldwide, implemented tighter expense controls, ceased non-core activities and closed or downsized several facilities. The 2013 Plan was substantially completed by December 31, 2014; however, the Company expects the remaining accrued severance related costs of $0.3 million as of December 31, 2019 to be paid once final settlement litigation is completed, which can be at various times over the next twelve months.

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 ending 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 the Mellville, NY office space during the three months ended June 30, 2018. In accordance with accounting standards governing costs associated with exit or disposal activities, expenses related to future rental payments for which the Company no longer intends to receive any economic benefit are accrued, net of any anticipated sublease income, when the Company ceases use of the leased space. During the fiscal year ended December 31, 2019, the Company incurred lease disposal-related costs for this property of $0.9 million. As of December 31, 2019, $0.2 million of the Company's remaining accrued lease disposal cost has been recorded as a component of operating lease liabilities.

In the third quarter of 2019, the Company adopted a plan to better align the Company’s cost structure with the skills and resources required to more effectively execute the Company’s long-term growth strategy and to support revenue levels the Company expected to achieve on a go forward basis (the "2019 Plan"). In connection with the 2019 Plan, the Company eliminated 23 positions worldwide, implemented tighter expense controls, ceased non-core activities and downsized several facilities. During the three months ended September 30, 2019, the Company incurred $0.2 million in severance expense as a result of this action. The 2019 Plan was substantially completed at December 31, 2019.

Accrued restructuring costs as of December 31, 2019 associated with the 2013 and 2017 Plans is as follows:



	Severance related costs			Facility and other costs			Total
Balance at December 31, 2017	$	648,399		$	—		$	648,399
Provisions/Additions	(173,265		)	1,434,843			1,261,578
Utilized/Paid	(13,773		)	(981,396		)	(995,169		)
Balance at December 31, 2018	$	461,361		$	453,447		$	914,808
Provisions/Additions	245,910			858,408			1,104,318
Utilized/Paid	(413,472		)	(1,074,362		)	(1,487,834		)
Balance at December 31, 2019	$	293,799		$	237,493		$	531,292

In the accompanying consolidated balance sheets, the Company's remaining accrued severance and other charges are included within “accrued expenses” and "accounts payable". The Company's remaining accrued facility cost has been recorded as a component of "operating lease liabilities". Expenses incurred under the 2017 and 2019 Plans during the years ended December 31, 2019 and 2018 are included within “restructuring costs” in the accompanying consolidated statements of operations.