XML 28 R20.htm IDEA: XBRL DOCUMENT v3.22.4
Note 13 - Cybersecurity Incident
12 Months Ended
Dec. 31, 2021
Notes to Financial Statements  
Cybersecurity Incident [Text Block]

Note 13.  Cybersecurity Incident

 

In November 2021, the Company determined that it had recently been the victim of criminal fraud known to law enforcement authorities as “business e-mail compromise fraud” which involved employee e-mail impersonation and fraudulent payment requests targeting the finance department of a division of the Company. The fraud resulted in unauthorized transfers of funds aggregating approximately $0.7 million, as well as approximately $10 thousand of professional service fees to address the fraud. The Company recovered $0.2 million in February 2022, which is included in accounts receivable on the Company’s balance sheet as of December 31, 2021. As a result, the Company recorded a charge of $0.6 million in the fourth quarter of 2021 within operating expenses on the consolidated statements of operations.

 

The Company is continuing to pursue the recovery of the remaining $0.6 million and is cooperating with U.S. federal law enforcement authorities who are actively pursuing an investigation. It is presently unclear whether or to what extend any additional amounts will be recovered. Any additional recoveries will be recognized as a gain on recovery in the period that the funds are received.