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Note 6 - Accrued Liabilities
 3 Months Ended
Mar. 31, 2025
Notes to Financial Statements  
Accounts Payable and Accrued Liabilities Disclosure [Text Block]

6. ACCRUED LIABILITIES

 

The Company’s accrued liabilities at  March 31, 2025 and  December 31, 2024 consisted of the following (in thousands):

 

  

March 31,

  

December 31,

 
  

2025

  

2024

 

Compensation and benefits

 $2,605  $2,408 

Other taxes payable

  272   268 

Other accrued liabilities

  422   890 

Total accrued liabilities

 $3,299  $3,566 

 

Management Transition

 

Effective January 31, 2025, the Company appointed the Company’s Chairman of the Board, J. Casey Crenshaw, as its Executive Chairman, and interim President and Chief Executive Officer.  Mr. Crenshaw replaced Westervelt T. Ballard, Jr., who mutually agreed with the Company to terminate his employment as the Company’s President and Chief Executive Officer and voluntarily resigned his position as a director. As part of Mr. Ballard’s separation, the Company entered into a release and consulting agreement with Mr. Ballard whereby the Company will pay Mr. Ballard separation pay of $1.0 million, paid in equal or near equal installments over a twelve-month period, and additional pay of $41 thousand representing an amount equal to a prorated bonus at "target" performance that Mr. Ballard would have received for his 2025 performance and reimbursement of COBRA premiums over what Mr. Ballard would normally pay for Company provided insurance up to a maximum of 18 months. Additionally, Mr. Ballard will receive a payment of $49 thousand per month for the remainder of 2025 for his consulting services. The Company recorded expense of $1.7 million, consisting of $1.6 million related to Mr. Ballard’s cumulative separation pay, additional pay and consulting pay and $0.1 million of other separation related expenses, all of  which are included in selling, general and administrative expenses in the accompanying Condensed Consolidated Statement of Operations during the three months ended March 31, 2025. As of March 31, 2025, a total of $1.5 million of this amount remains unpaid and is included in current liabilities on our Condensed Consolidated Balance Sheet with $1.4 million included above within accrued compensation and benefits and $0.1 million in accounts payable.

 

As part of Mr. Ballard’s release and consulting agreement the Company also accelerated vesting and amended option exercise terms for certain equity awards. See additional discussion in Note 10.