SIGNIFICANT ACCOUNTING POLICIES (Tables)

9 Months Ended

Sep. 30, 2024

Schedule of Changes in Restructuring Expenses Accrual


Table 2.1: Restructuring Expenses and Impairment Loss
	Statements of Operations	For the Three Months Ended				For the Nine Months Ended
		September 30, 2024		September 30, 2023		September 30, 2024		September 30, 2023

		(in thousands)
2022 Restructuring Plan:
Severance and related benefit costs	SG&A	$	—	$	—	$	(10)	$	(103)
Other related costs	SG&A	—		—		—		1,300
2024 Restructuring Plan:
Severance and related benefit costs	Cost of sales	393		—		393		—
Severance and related benefit costs	R&D, SG&A	1,054		—		1,054		—
Total restructuring expenses		1,447		—		1,437		1,197
Impairment of intangible assets (1)	Impairment loss on intangible assets	6,373		—		6,373		—
Total restructuring expenses and impairment loss		$	7,820	$	—	$	7,810	$	1,197

(1) The recoverability evaluation of intangible assets resulted in an $11.7 million impairment loss, of which $5.3 million was recorded under cost of sales for the discontinued parts of certain solutions, and $6.4 million was recorded under operating expenses as a result of the restructuring plan (see Note 8 - Intangible Assets, Net).

At each reporting date, the Company evaluates its restructuring expense accrual to determine if the liabilities reported are still appropriate. Any changes in the estimated costs of executing the approved restructuring plans are reflected in the Company's unaudited consolidated statement of operations.


Table 2.2: Summary of Changes in Restructuring Expenses Accrual
	Severance and related benefit costs (1)

	(in thousands)
Balance at December 31, 2023	$	400
Expenses	1,437
Cash payments	(490)
Balance at September 30, 2024	$	1,347

(1) Restructuring expenses accrual is included within "Other current liabilities" on the Company's unaudited consolidated balance sheets (see Note 9 - Other Balance Sheet Components for further details).