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RESTRUCTURING
9 Months Ended
Sep. 30, 2020
Restructuring and Related Activities [Abstract]  
RESTRUCTURING

13. RESTRUCTURING

 

In the second quarter of 2020, management approved several actions as part of a restructuring plan designed to improve operational efficiency and financial results. Management approved a reduction in force, which affected 40 of the 126 employees in the regenerative medicine business segment, or approximately 31.7% of that workforce. The Company did not make any change in the workforce of its contract services segment. The Company recognized $0.6 million of expense related to employee severance and benefit arrangements for the second quarter restructuring. The Company also recognized $0.4 million of other employee severance expense during the first quarter of 2020. Total severance expense recorded during the nine months ended September 30, 2020 was $1.0 million. It is expected that the full amount of severance will be paid by the end of 2020. Management also recorded $1.5 million of asset abandonments within the Company’s regenerative medicine business segment.