Note 19 - Restructuring Costs

6 Months Ended

Jun. 30, 2024

Notes to Financial Statements

Restructuring and Related Activities Disclosure [Text Block]

19. Restructuring Costs:

On February 7, 2024, Ting committed to the 2024 Ting Restructuring Plan which aimed to realign the Company's operational structure within the Ting operating segment and reduce Ting's workforce by 13%, or 7% of the Company’s total workforce, to better align with strategic objectives (the "2024 Ting Restructuring Plan"). The 2024 Ting Restructuring Plan was designed to streamline operations and reduce operating expenses within the Ting operating segment. Substantially all of the employees impacted by the workforce reduction were notified on February 7, 2024 and have since exited the Company. 

During the three and six months ended June 30, 2024, the Company incurred $0.3 million and $2.8 million in costs related to this restructuring, which were accounted for under ASC 420 - Exit or Disposal Cost Obligations. These costs associated with the "2024 Ting Restructuring Plan" predominantly consisted of one-time termination benefits for the terminated employees associated with the restructuring, and to a lesser extent, continuation of benefits and outplacement costs.

The costs are recorded within the following financial statement captions on the Consolidated Statements of Operations and Comprehensive Loss (Dollar amounts in thousands of U.S. dollars):

Expense Presentation	Three Months Ended June 30, 2024		Six Months Ended June 30, 2024
Direct cost of revenue	$	72	$	437
Sales and marketing		170		2,054
Network, other costs		24		79
General administrative		-		256
	$	266	$	2,826

All of the costs associated with the 2024 Ting Restructuring Plan were charged to the Ting operating segment. 

The components of the restructuring charges were as follows (Dollar amounts in thousands of U.S. dollars):

Cost Description	Three Months Ended June 30, 2024		Six Months Ended June 30, 2024
One-time pay	$	190	$	2,279
Continuation of benefits		56		336
Outplacement costs		20		211
Total restructuring charges	$	266	$	2,826

The liability for the 2024 Ting Restructuring Plan was included in Accrued liabilities in the consolidated balance sheet, and the following tables summarize the related activity for the 2024 Ting Restructuring Plan for the three and six months ended June 30, 2024 (Dollar amounts in thousands of U.S. dollars):

Cost Description	As of March 31, 2024		Charges for the three months ended June 30, 2024		Cash payments made in the three months ended June 30, 2024			Balances as of June 30, 2024
One-time pay	$	103	$	190	$	(293	)	$	-
Continuation of benefits		-		56		(56	)		-
Outplacement costs		139		20		(143	)	$	16
Total	$	242	$	266	$	(492	)	$	16

Cost Description	As of December 31, 2023		Charges for the six months ended June 30, 2024		Cash payments made in the six months ended June 30, 2024			Balances as of June 30, 2024
One-time pay	$	-	$	2,279	$	(2,279	)	$	-
Continuation of benefits		-		336		(336	)		-
Outplacement costs		-		211		(195	)		16
Total	$	-	$	2,826	$	(2,810	)	$	16