XML 23 R10.htm IDEA: XBRL DOCUMENT
v3.19.1

Restructuring | 12 Months Ended
--- | ---
Dec. 31, 2018
Restructuring and Related Activities [Abstract] |
Restructuring | RESTRUCTURING Due to our financial performance in 2016, 2017, and 2018, including net losses of $16.9 million, $11.3 million, and $9.1 million, respectively, and total cash used of $18.0 million, $5.9 million, and $4.4 million, respectively, we believe that substantial doubt about our ability to continue as a going concern existed at December 31, 2016, 2017, and 2018. As a result of such determination as of December 31, 2016, we evaluated actions to mitigate the substantial doubt about our ability to continue as a going concern. Our evaluation considered both quantitative and qualitative information, including our current financial position and liquid resources, and obligations due or anticipated within the next year. With $16.6 million in cash and no debt obligations as of December 31, 2016, we focused our efforts on reducing our overall operating expenses in an effort to return to profitability. Consequently, in February 2017, we announced a corporate restructuring initiative with a goal of significantly reducing annual operating costs from 2016 levels. The initiative included an organizational consolidation of management and oversight functions in order to streamline and better align the organization into more focused, efficient, and cost-effective reporting relationships, and involved closing our offices in Rochester, Minnesota, New York, New York, and Arlington, Virginia and reducing our staff by 20 employees, primarily located in these offices. During the second quarter of 2017, we fully exited the New York and Arlington facilities and took additional actions to improve our operating efficiencies. These actions reduced our staff by an additional 17 production and administrative employees in our Solon location. These restructuring actions resulted in a net decrease in operating expenses through December 31, 2017 of $8.4 million, including restructuring and asset impairment charges of $1.8 million, consisting of approximately $0.8 million for severance and related benefits, approximately $0.7 million related to the facility closings, approximately $0.1 million primarily related to fixed asset and prepaid expenses write-offs and approximately $0.2 million in asset impairment charges, as well as asset impairment charges of $0.9 million in 2016. During the year ended December 31, 2018, we recorded restructuring charges totaling approximately $0.1 million, related to the revision of our initial estimates of the costs and offsetting sublease income and accretion expense for the remaining lease obligation for our former New York, New York and Arlington, Virginia offices. Our continued cost control initiatives in 2018 resulted in an additional net decrease in operating expenses of $3.6 million, which includes restructuring and asset impairment charges of $0.1 million. Our restructuring liabilities consist of one-time termination costs for severance and benefits to former employees and estimated ongoing costs related to long-term operating lease obligations. The recorded value of the termination severance and benefits to employees approximates fair value, as the remaining obligation is based on the arrangements made with the former employees, and these obligations will be completely satisfied in less than 12 months. The recorded value of the ongoing lease obligations is based on the remaining lease term and payment amount, net of estimated sublease income, discounted to present value. Changes in subsequent periods resulting from a revision to either the timing or the amount of estimated cash flows over the future period are measured using the credit adjusted, risk-free rate that was used to measure the restructuring liabilities initially. The current portion of the ongoing lease obligations is included within the caption, “Accrued liabilities” and the long-term portion of the ongoing lease obligations is included within the caption, “Other liabilities” in the Consolidated Balance Sheets as of December 31, 2018 and 2017. As of December 31, 2018, we estimated that we would receive a total of approximately $0.7 million in sublease payments to offset our remaining lease obligations, which extend until June 2021, of approximately $1.1 million. We expect to incur insignificant additional costs over the remaining life of our lease obligations. The following is a reconciliation of the beginning and ending balances of our restructuring liability:
| Severance and Related Benefits |  | Facilities |  | Other |  | Total
Balance at January 1, 2017 | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |
Additions | $ | 770 |  |  | $ | 830 |  |  | $ | 186 |  |  | $ | 1,786 |
Accretion of lease obligations |  |  | $ | 31 |  |  | $ | — |  |  | $ | 31 |
Adjustment of lease obligations |  |  | $ | (155 | ) |  | $ | — |  |  | $ | (155 | )
Write-offs |  |  | $ | 9 |  |  | $ | (95 | ) |  | $ | (86 | )
Payments | $ | (708 | ) |  | $ | (375 | ) |  | $ | (91 | ) |  | $ | (1,174 | )
Balance at December 31, 2017 | $ | 62 |  |  | $ | 340 |  |  | $ | — |  |  | $ | 402 |
Accretion of lease obligations |  |  | $ | 21 |  |  | $ | — |  |  | $ | 21 |
Adjustment of lease obligations |  |  | $ | 90 |  |  | $ | — |  |  | $ | 90 |
Payments | $ | (62 | ) |  | $ | (101 | ) |  | $ | — |  |  | $ | (163 | )
Balance at December 31, 2018 | $ | — |  |  | $ | 350 |  |  | $ | — |  |  | $ | 350 |
At December 31, 2018, we had $6.3 million in cash, including $2.2 million outstanding on the revolving credit facility we entered into on December 11, 2018. As a result of the restructuring actions and initiatives described above, we have reduced our operating expenses to be more commensurate with our sales volumes, however, we continue to incur losses and have a substantial accumulated deficit, raising substantial doubt about our ability to continue as a going concern at December 31, 2018. Considering both quantitative and qualitative information, we continue to believe that the combination of our plans to obtain additional financing, restructuring actions, current financial position, liquid resources, obligations due or anticipated within the next year, executive reorganization, and implementation of our product development and sales channel strategy, if adequately executed, will provide us with an ability to finance our operations through 2019 and will mitigate the substantial doubt about our ability to continue as a going concern. Please refer to Note 16, “Subsequent Events,” for more information on the additional financing we received on March 26, 2019 to fund our near-term operations.

X
- References No definition available. + Details
Name: | us-gaap_RestructuringAndRelatedActivitiesAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for restructuring and related activities. Description of restructuring activities such as exit and disposal activities, include facts and circumstances leading to the plan, the expected plan completion date, the major types of costs associated with the plan activities, total expected costs, the accrual balance at the end of the period, and the periods over which the remaining accrual will be settled. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 420 -URI http://asc.fasb.org/topic&trid=2175745 + Details
Name: | us-gaap_RestructuringAndRelatedActivitiesDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration