Restructuring Charge

12 Months Ended

Dec. 31, 2019

Restructuring Charge

Restructuring Charge

9. Restructuring Charge

On November 26, 2018, the Board of Directors of the Company approved a corporate restructuring plan to reduce its cost structure as part of its commitment to shareholders to reduce operating costs.

As part of the Company’s commitment to reduce operating expenses and preserve cash, the Company eliminated positions effective December 7, 2018. The reduction included 8 employees, which represented approximately 33% of its workforce as of November 29, 2018, the date affected employees were notified. The affected employees received certain severance benefits as provided in the Plan. As a result, the Company realized annualized cost savings beginning with the first quarter of 2019. The Company has incurred a one-time severance-related charge totaling approximately $409,000 which was recorded in the fourth quarter of 2018.