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Subsequent Events
6 Months Ended
Jun. 30, 2021
Subsequent Events [Abstract]  
Subsequent Events

12. Subsequent Events.

 

On July 19, 2021, the Company terminated the services of Jack B. Blount as the Company’s President and Chief Executive Officer. On August 3, 2021, Mr. Blount resigned his position as member of the board of directors and executed a separation agreement. On August 5, 2021, the Board appointed Anthony J. LeVecchio, the Company’s current Executive Chairman of the Board of Directors to serve as Principal Executive Officer as the Company conducts a search for a permanent Chief Executive Officer.

 

On July 29, 2021, the Company executed a planned reduction in force resulting in the termination of approximately 20% of its employees across the organization. The reduction in force was part of a larger effort on the Company’s part to reduce expenses and overhead as a result of the challenges the Company anticipates in meeting its liquidity and cash-flow needs in the near term, as a result of lower than expected 2021 revenues from its newly introduced INTRUSION Shield service offering. In connection with the reduction in force, the Company will incur approximately $135,000 during the third quarter of 2021 related to employee-termination benefits, including expenses for cash severance costs. The Company expects to see net costs savings of $1,200,000 during the remainder of the year related to this reduction in force.

 

On August 1, 2021, the Company entered new equipment leasing agreements where it has the contractual obligation to make future minimum lease payments of an aggregate of $1.5 million that expire at various dates through 2024.

 

Management has evaluated subsequent events through August 13, 2021, the date these condensed consolidated financial statements are issued. No events or transactions other than those already described in these condensed consolidated financial statements have occurred subsequent to the balance sheet date that might require recognition or disclosure in the condensed consolidated financial statements.