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Restructuring
12 Months Ended
Dec. 31, 2020
Restructuring And Related Activities [Abstract]  
Restructuring

4. Restructuring

   

The following table summarizes the Company’s restructuring accrual activity for the years ended December 31, 2020, and 2019:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

China Restructuring Severance

 

 

Lease Termination

 

 

Total

 

Balance at January 1, 2019

 

$

0

 

 

$

77

 

 

$

77

 

Restructuring expense

 

 

507

 

 

 

0

 

 

 

507

 

Payments made

 

 

(495

)

 

 

(143

)

 

 

(638

)

Payments received

 

 

0

 

 

 

99

 

 

 

99

 

Balance at December 31, 2019

 

$

12

 

 

$

33

 

 

$

45

 

Restructuring expense

 

 

124

 

 

 

0

 

 

 

124

 

Payments made

 

 

(136

)

 

 

(106

)

 

 

(242

)

Payments received

 

 

0

 

 

 

88

 

 

 

88

 

Balance at December 31, 2020

 

$

0

 

 

$

15

 

 

$

15

 

 

 

 

The restructuring liability is recorded on the balance sheet in accrued liabilities at December 31, 2020 and 2019.

 

China Restructuring

On August 7, 2019 the Company’s Board of Directors approved a transition plan for the Company’s China manufacturing operations. As part of the plan, the Company is transitioning high-volume manufacturing from its Tianjin, China facility to contract manufacturers in China and elsewhere in order to reduce fixed costs in China, optimize the cost structure of the antenna product line, and create flexibility in antenna manufacturing due to the uncertainty of the lease of the current manufacturing premises, as described below. For the year ended December 31, 2020, the Company incurred restructuring expenses of $0.1 million for employee severance related to the separation of 12 employees and for the year ended December 31, 2019, the Company incurred restructuring expenses of $0.5 million for employee severance and related benefits related to the separation of 84 employees.   Severance costs were paid from the Company’s cash in its China bank accounts.

On October 8, 2020, the lease of the premises on which the Company’s China manufacturing operations are conducted expired and the renewal is pending and uncertain. The Company has been notified that the Chinese Party Central Committee and the State Council are accelerating the layout optimization and transformation of the industrial park in which the Company’s leased premises is located and, accordingly, leases and lease extensions for all premises in the industrial park have been suspended and rent collection has been postponed.  The Company has not received an indication of the likelihood of approval of its lease extension.  As a result of the uncertainty regarding the Tianjin Lease (as defined in Note 7) renewal, the Company is refining its transition plan for the manufacturing activities conducted on the leased premises. As part of the refined transition plan, the Company will retain a group of employees in Tianjin, China, but will reduce additional headcount in Tianjin and incur additional restructuring charges for severance and other non-cash costs. The Company expects additional severance of between $0.8 million and $1.0 million in 2021.  See Note 7 and the risk factors in Part II, Item 1A for additional information.  The Company expects the transition to be substantially completed by the end of the 2021 fiscal year.

Lease Termination

In 2016, the Company exited from its Colorado office to consolidate facility space and in the second quarter 2017 the Company signed a sublease for the office space. The lease and sublease terminated in October 2020.