NOTE 21: RESTRUCTURING AND OTHER EXIT ACTIVITIES

On January 21, 2024, the Company announced the adoption of a restructuring plan in response to challenging industry conditions (the “Restructuring Plan”). Under the Restructuring Plan, the Company reduced its headcount by approximately 16% over the first half of 2024 in an involuntary workforce reduction. The adoption of the Restructuring Plan follows the Company’s previous measures taken to align with current market conditions, including termination of manufacturing in Mexico, reduction of manufacturing capacity in China, and discontinuation of the Company’s light commercial vehicle e-mobility activity.

Restructuring and other exit charges for the three months ended September 30, 2024, by segment and type of cost were as follows:

	Solar				e-Mobility
	Employee termination costs		Contract termination and other		Employee termination costs			Inventory write-down			Contract termination and other			Total
Cost of revenues	$	884	$	332	$	-		$	(2	)	$	(4	)	$	1,210
Research and development		648		-		-			-			-			648
Sales and marketing		468		-		-			-			-			468
General and administrative		183		-		(11	)		-			-			172
Total	$	2,183	$	332	$	(11	)	$	(2	)	$	(4	)	$	2,498

Restructuring and other exit charges for the nine months ended September 30, 2024, by segment and type of cost were as follows:

	Solar				e-Mobility
	Employee termination costs		Contract termination and other		Employee termination costs			Inventory write-down			Contract termination and other			Total
Cost of revenues	$	1,938	$	9,619	$	(200	)	$	(138	)	$	(859	)	$	10,360
Research and development		3,561		248		-			-			-			3,809
Sales and marketing		1,113		-		(4	)		-			-			1,109
General and administrative		568		118		(54	)		-			-			632
Total	$	7,180	$	9,985	$	(258	)	$	(138	)	$	(859	)	$	15,910

The Company’s liability balance for the restructuring and other exit charges is as follows:

	Employee termination costs			Inventory write-down ¹			Contract termination and other
Balance as of December 31, 2023	$	2,373		$	27,774		$	30,393
Charges		6,922			(137	)		9,124
Cash payments		(9,029	)		-			(36,853	)
Non-cash utilization and other		(266	)		(6,171	)		(2,664	)
Balance as of September 30, 2024	$	-		$	21,466		$	-

¹Inventory write-down is included under Inventories, net on the balance sheet.