Restructuring Costs

12 Months Ended

Dec. 31, 2020

Restructuring and Related Activities [Abstract]

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, 2020, the Company incurred lease disposal-related costs for this property of $956,118. As of December 31, 2020, $75,466 of the Company's remaining accrued lease disposal cost has been recorded as a component of operating lease liabilities. The Company expects the remaining accrued severance-related costs of $239,444 as of December 31, 2020 to be paid once final settlement litigation is completed, which is expected to occur by December 31, 2021.

In the third quarter of 2019, the Company adopted the 2019 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 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 March 31, 2020, the Company incurred $0.1 million in severance expense as a result of this action. The 2019 Plan was substantially completed at March 31, 2020.

Given the commercial uncertainty caused by the novel coronavirus pandemic, or COVID-19, the Company developed and implemented an even more aggressive expense control plan in March 2020, that it is prepared to keep in place for the remainder of 2020 (the "2020 Plan"). The 2020 Plan reduced the Company's annual cash expense run rate by $4.0 million or 29%. The Company has furloughed 21 positions worldwide, and 20 of these positions were reinstated by the fourth quarter of 2020. During the nine months ended September 30, 2020, the Company has not yet incurred severance expense as a result of this action.

The following table summarizes the activity during 2019 and 2020 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, 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
Provisions/Additions	$	76,708	$	956,118	$	1,032,826
Translation Adjustment	25,353		—		25,353
Utilized/Paid	$	(156,416)	$	(1,118,145)	$	(1,274,561)
Balance at December 31, 2020	$	239,444	$	75,466	$	314,910

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, 2019 and 2020 Plans during the years ended December 31, 2020 and 2019 are included within “restructuring costs” in the accompanying consolidated statements of operations.