v2.4.0.8
Severance and Other Charges
 3 Months Ended
Mar. 31, 2014
Restructuring and Related Activities [Abstract]  
Restructuring and Related Activities Disclosure [Text Block]

6.       Severance and Other Charges


        Severance and other charges consist of the following (in thousands):



Three Months Ended

March 31,

 

 

2014

 

 

2013

Employee severance expense

$

46

 

$

11

Lease exit costs

 

43

 

 

─

Legal settlements

 

265

 

 

─

Total severance and other charges

$

354

 

$

11


        Severance and Other Exit Costs                


        The Company incurred severance costs in 2014 related to its North American and United Kingdom locations. The Company incurred additional lease exit costs related to the exit of a lease in North America in 2013.               


        The following summarizes the activity in the Company’s accrual for severance and other exit costs (in thousands):


 

 

Severance

 

 

Lease

Exit Costs

 

 

Total

Accrual at December 31, 2013

$

530

 

$

─

 

$

530

Provision in 2014

 

46

 

 

43

 

 

89

Payments and other settlements in 2014

 

(222)

 

 

(23)

 

 

(245)

Translation adjustment

 

(3)

 

 

─

 

 

(3)

Accrual at March 31, 2014

$

351

 

$

20

 

$

371


The Company expects to pay substantially all of the accrued amounts during the remainder of 2014.


Legal Settlements


On March 13, 2014, the Company reached a settlement with its former chief financial officer pursuant to an administrative complaint that was filed in 2010 which provides for a one-time lump sum amount of $0.4 million and the issuance of 75,000 shares of Company common stock. The accrued balance of $0.7 million at March 31, 2014 includes the lump sum amount, the market value of the common stock on the balance sheet date and related accrued legal expenses. In the three months ended March 31, 2014, the Company recorded an additional $0.2 million primarily related to the increase in fair value of its common stock. The settlement was paid and stock issued in April 2014. In the three months ended March 31, 2014, the Company also incurred $0.1 million related to the settlement of a customer dispute.