Impairment and Other Charges

9 Months Ended

Sep. 30, 2024

Goodwill and Intangible Assets Disclosure [Abstract]

Note 12—Impairment and Other Charges

Impairment and other charges consisted of the following:


	Three Months Ended				Nine Months Ended
	September 30,				September 30,
$ in thousands	2024		2023		2024		2023
Property, plant and equipment	$	—	$	—	$	3,354	$	—
Goodwill	—		—		—		1,008




Severance costs	202		115		847		587
Manufacturing Facility closing costs	—		—		161		—
Total impairment and other charges	$	202	$	115	$	4,362	$	1,595

Manufacturing Facility Closure

As discussed in Note 1—Organization and Basis of Presentation—Liquidity and Going Concern, on May 16, 2024, the Company made the strategic decision to implement a targeted plan, which included a workforce reduction, the closing of its Manufacturing Facility and a reduction in third-party costs. Costs and charges related to the implementation of the Company’s targeted plan, are accrued when probable and reasonably estimable or at the time of program announcement. The Company expects to incur the costs associated with its targeted plan over the remainder of 2024 and possibly into the first quarter of 2025, however the ultimate amount and timing of total costs and charges in connection with the Company’s targeted plan may vary due to a variety of factors, including the finalization of the closure of the Manufacturing Facility and continued sales of property, plant and equipment located at the Manufacturing Facility.

During the second quarter of 2024, management concluded that these actions constituted a triggering event and as a result, we performed an impairment assessment for our long-lived assets, including right-of-use assets. During the second quarter of 2024, we recorded impairments of $3.4 million to property, plant and equipment related to leasehold improvements, machinery and equipment and other fixed assets located at our Manufacturing Facility.

During the second quarter of 2024, we recorded severance costs of $0.6 million related to employee transition, severance and related benefits, primarily associated with the workforce reduction mentioned above.

During the second quarter of 2024, we recorded reorganization costs of $0.2 million associated with closing our Manufacturing Facility. We estimate that we could incur between $0.2 million to $2.0 million of costs associated with closing the Manufacturing Facility, including lease termination costs and other related costs, over the remainder of 2024 and possibly into the first quarter of 2025.

As of September 30, 2024, the reorganization costs liability decreased to $0.1 million due to payments made during the three months ended September 30, 2024, associated with closing our Manufacturing Facility. The reorganization costs liability is included in accrued expenses and other current liabilities on our consolidated balance sheets.

Goodwill Impairment

During the first quarter of 2023, we assessed our goodwill for impairment due to a sustained decrease in the Company’s market capitalization. The Company concluded that it was more likely than not that the fair value of its reporting unit was less than its carrying amount as of March 31, 2023. As a result, we fully impaired goodwill and recorded an impairment of $1.0 million during the first quarter of 2023.

Reorganization Costs

During the three months ended September 30, 2024, we recorded additional severance costs of $0.2 million related to employee severance and related benefits. In October 2024, we initiated additional workforce reductions which resulted in severance costs of approximately $0.6 million for employee severance and related benefits.

In February 2023, the Company initiated a strategic plan to respond to market feedback, streamline our operations, and improve our financial condition. As a result, during the three and nine months ended September 30, 2023, we recorded severance costs of $0.1 million and $0.6 million, respectively, for employee severance and related benefits.