In January 2018, a judge in a trade secrets case brought by the Company granted the defendants’ motions for recovery of their attorney fees (see Note 18, “Commitments and Contingencies” for further discussion relating to this matter). A charge in the amount of $675,000 was recorded as a liability in the second quarter of fiscal 2018. The Company appealed this court decision. In January 2019, the Company settled with the defendants and ended its appeal in return for a net payment due to them in the amount of $66,000. As a result, in the second quarter of fiscal 2019, the Company adjusted the accrual.

In the second quarter of fiscal 2020, our President and Chief Executive Officer resigned and the Company had a reduction in force in the U.S. The resignation and the action resulted in an accrual of $471,000 of severance expense in the second quarter ended December 31, 2019. The remaining balance of the accrual was $404,000 at December 31, 2019.

These charges recorded as Severance, Impairment and Other Charges are as follows (in thousands):

	Three Months Ended December 31,					Six Months Ended December 31,
	2019		2018			2019		2018
Severance and Related Costs	$	471	$	-		$	471	$	-
Court Award		-		(609	)		-		(609	)
Total	$	471	$	(609	)	$	471	$	(609	)

The following table reconciles the activity for the reserves for severance and other charges (in thousands):

	Six Months Ended December 31,
	2019			2018
Beginning Balance at July 1,	$	44		$	675
Accruals - Severance Related		471			-
Accruals / Adjustments - Court Award		-			(609	)
Payments		(111	)		-
Ending Balance at December 31,	$	404		$	66