17. WORKFORCE REDUCTION

Workforce Reduction

In January 2013, the Company implemented a realignment of its workforce to reduce certain fixed costs and provide for a more flexible cost model in the development and distribution of its games. The realignment included a reduction in workforce of approximately 40 employees, including employees related to the closure of its studio in Massachusetts, which focused on social games for Facebook, game-testing personnel in its New Jersey facility, and other marketing and support personnel.

The Company recorded the following charges in the three and six months ended April 30, 2013:

	Three months ended April 30,		Six months ended April 30,
Severance costs	$	-	$	766
Lease termination costs		-		10
Total workforce reduction costs	$	-	$	776

Changes in the Company’s accrued liabilities for workforce reduction costs in the three and six months ended April 30, 2013 were as follows:

	Three months ended April 30,		Six months ended April 30,
Beginning balance	$	634	$	-
Workforce reduction costs accrued		-		776
Workforce reduction costs paid		(333)		(475)
Ending balance	$	301	$	301