Restructuring

3 Months Ended

Mar. 31, 2020

Restructuring and Related Activities [Abstract]

During the fourth quarter of 2019, the Company announced the implementation of a restructuring plan to reduce operating expenses as the Company continues the global market development of the Senhance platform. Under the restructuring plan, the Company reduced headcount primarily in the sales and marketing functions and determined that the carrying value of its inventory exceeded the net realizable value due to a decrease in expected sales. The restructuring charges amounted to $8.8 million, of which $7.4 million was an inventory write down and was included in cost of product revenue and $1.4 million related to employee severance costs and was included as restructuring and other charges in the consolidated statements of operations and comprehensive loss, for the year ended December 31, 2019. During March 2020, the Company continued the restructuring efforts with additional headcount reductions which resulted in $0.9 million related to severance costs. These 2020 severance costs are primarily expected to be paid in 2020. See Note 1 for additional information regarding the impact of the COVID-19 pandemic.

Future payments under the restructuring plan are expected to conclude in 2020 and total $1.4 million. During the three months ended March 31, 2020, the activity related to the Company's restructuring liability, which is included in accrued expenses in the consolidated balance sheet, was as follows:



	Restructuring Liability
	(In thousands)
Balance at December 31, 2019	$	882
Amount charged to operating expenses	858
Cash payments	(361		)
Balance at March 31, 2020	$	1,379