Restructuring Costs

6 Months Ended

Jun. 30, 2021

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 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. 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 six months ended June 30, 2021, the Company incurred lease disposal-related costs for this property of $0.7 million. 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 $141,340 at June 30, 2021 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 an expense control plan (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 as of 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 (the "2020 Plan"). The 2020 Plan reduced the Company's annual cash expense run rate by $4.0 million or 29%. The Company furloughed 21 positions worldwide, and 20 of these positions were reinstated by December 31, 2020. During the six months ended June 30, 2021, the Company has not yet incurred severance expense as a result of this action.

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


	Severance Related Costs		Facility and Other Costs		Total
























































Balance at January 1, 2020	$	293,799	$	237,493	$	531,292
Additions (Reductions)	76,708		210,752		287,460
Utilized/Paid	(156,415)		(225,835)		(382,250)
Balance at March 31, 2020	$	214,092	$	222,410	$	436,502
Additions (Reductions)	—		153,685		153,685
Translation Adjustment	4,674		—		4,674
Utilized/Paid	—		(201,211)		(201,211)
Balance at June 30, 2020	$	218,766	$	174,884	$	393,650
Additions (Reductions)	—		317,595		317,595
Translation Adjustment	9,554		—		9,554
Utilized/Paid	—		(366,562)		(366,562)
Balance at September 30, 2020	$	228,320	$	125,917	$	354,237
Additions (Reductions)	—		274,086		274,086
Translation Adjustment	11,124		—		11,124
Utilized/Paid	—		(324,537)		(324,537)
Balance at December 31, 2020	$	239,444	$	75,466	$	314,910
Additions (Reductions)	—		302,313		302,313
Translation Adjustment	(10,393)		—		(10,393)
Utilized/Paid	—		(357,184)		(357,184)
Balance at March 31, 2021	$	229,051	$	20,595	$	249,646
Additions (Reductions)	$	—	$	421,737	$	421,737
Translation Adjustment	$	2,734	$	—	$	2,734
Utilized/Paid	(90,445)		(442,332)		(532,777)
Balance at June 30, 2021	$	141,340	$	—	$	141,340

The severance and facility related liabilities are included within “accrued expenses” in the accompanying condensed consolidated balance sheets. The expenses under the 2017, 2019 and 2020 Plans are included within “restructuring costs” in the accompanying condensed consolidated statements of operations.