Note 16 - Restructuring Activities

12 Months Ended

Dec. 31, 2020

Notes to Financial Statements

Restructuring and Related Activities Disclosure [Text Block]

16.

     RESTRUCTURING ACTIVITIES

On

January 18, 2019,

the Company announced a planned suspension of its Air Pollution Control (“APC”) business operation in China (“Beijing Fuel Tech”). This action is part of Fuel Tech's ongoing operational improvement initiatives designed to prioritize resource allocation, reduce costs, and drive profitability for the Company on a global basis. The transition associated with the suspension of the APC business includes staff rationalization, supplier and partner engagement, and the monetization of certain assets. The remaining transition activities include the execution of the remaining activities to satisfy the requirements for the remaining APC projects in China (with a backlog totaling approximately

$24

) in addition to collection efforts for the remaining accounts receivable.

The following table presents our revenues and net loss in China for the years ended

December 31, 2020

 and

2019

:

	2020			2019
Total revenues	$	25		$	329
Net loss		(281	)		(1,767	)

The following table presents net assets in China for the years ended

December 31, 2020

and

2019

:

	2020		2019
Total assets	$	2,463	$	4,249
Total liabilities		396		399
Total net assets		2,067		3,850

Total assets primarily consist of cash, accounts receivable, contract assets, prepaid expenses and other current assets. Total liabilities consist of accounts payable and certain accrued liabilities.

The Company recorded restructuring charges

$625

for the

twelve

months ended

December 31, 2019 

associated with the suspension of its APC business operation in China. The charge consisted primarily of

one

-time severance costs of

$562

and the early termination penalty for our lease in the amount of

$63

associated with the suspension of our APC business in China. On

January 23, 2019,

the Company notified the landlord of our intention to early terminate the lease on

July 22, 2019

resulting in the early termination penalty.

The Company recorded

no

restructuring charge for the

twelve

-months ending

December 31, 2020. 

The following is a reconciliation of the accrual for the workforce reduction that is included within the "Accrued Liabilities" line of the consolidated balance sheets:

	Twelve Months Ended
	2020		2019
Restructuring liability at January 1,	$	—	$	65
Amounts expensed		—		625
Amounts expensed - discontinued operations		—		—
Amounts paid		—		(690	)
Restructuring liability at December 31,	$	—	$	—