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Restructuring
12 Months Ended
Dec. 31, 2021
Restructuring And Related Activities [Abstract]  
Restructuring

5. Restructuring

The following table summarizes the Company’s restructuring accrual activity for the years ended December 31, 2021, and 2020:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Severance

 

 

Lease Termination

 

 

Total

 

Balance at January 1, 2020

 

$

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

 

Restructuring expense

 

 

900

 

 

 

0

 

 

 

900

 

Payments made

 

 

(532

)

 

 

(15

)

 

 

(547

)

Payments received

 

 

0

 

 

 

0

 

 

 

0

 

Balance at December 31, 2021

 

$

368

 

 

$

0

 

 

$

368

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

The restructuring liability is recorded on the balance sheet in accrued liabilities at December 31, 2021 and 2020.

 

China Manufacturing

 The Company initiated a restructuring plan in 2019 to transition manufacturing from its Tianjin, China facility to contract manufacturers in China and to the Company’s Bloomingdale, Illinois facility due to uncertainties with its Tianjin facility lease and also to optimize the cost structure of the antenna product line and create flexibility in antenna manufacturing. For the year ended December 31, 2021, the Company incurred restructuring expenses of $0.1 million for employee severance and benefits related to the separation of 16 employees. For the year ended December 31, 2020, the Company incurred restructuring expenses of $0.1 million for employee severance and benefits related to the separation of 12 employees. Severance costs were paid from the Company’s cash in its China bank accounts.  During the first quarter 2022, the Company completed the manufacturing transition and incurred restructuring expense of $0.8 million related to the elimination of 69 positions.

On October 8, 2020, the lease of the premises on which the Company’s China manufacturing operations were conducted expired and the renewal was uncertain. The Company was notified that the Chinese Party Central Committee and the State Council were 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 were suspended. As a result of the uncertainty regarding the Tianjin Lease renewal, the Company accelerated its plan to transition all manufacturing in Tianjin to contract manufacturers. The Company completed the manufacturing transition in the first quarter 2022. With the transition complete, the Company will vacate the Tianjin manufacturing facility during the first half of 2022. The Company plans to retain a team of 10-15 employees associated with sourcing, quality, and local customer support at a new leased facility in Tianjin, China.  See Note 8 for additional information on the Tianjin lease.     

Beijing Restructuring

As a cost saving initiative, the Company separated 14 employees from its Beijing office in November 2021. The terminated positions were primarily related to antenna engineering in addition to office and sales support.    The Company incurred restructuring expenses of $0.8 million consisting of employee severance and related employee benefits and for professional fees associated with employee separations. The Company rehired four former Beijing employees through a third-party employment agency to provide sales and engineering support.