Restructuring Costs

12 Months Ended

Dec. 31, 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 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, 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 $134,663 as of December 31, 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 and 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 has furloughed 21 positions worldwide, and 20 of these positions were reinstated by the December 31, 2020. The Company has not 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 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
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

In the accompanying consolidated balance sheets, the Company's remaining accrued severance and other charges are included within “accrued expenses” and "accounts payable". Expenses incurred under the 2017, 2019 and 2020 Plans during the years ended December 31, 2021 and 2020 are included within “restructuring costs” in the accompanying consolidated statements of operations.