Severance and Other Charges

6 Months Ended

Jun. 30, 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 June 30,				Six Months Ended June 30,
	Three Months Ended June 30,				Six Months Ended June 30,
	2014		2013		2014		2013
Employee severance expense	$	23	$	51	$	69	$	62
Lease exit costs		-		-		43		-
Legal settlements		-		-		265		-
Total severance and other charges	$	23	$	51	$	377	$	62

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):

			Lease Exit Costs
	Severance		Lease Exit Costs		Total
Accrual at December 31, 2013	$	530	$	-	$	530
Provision in 2014		69		43		112
Payments and other settlements in 2014		(364)		(23)		(387)
Translation adjustment		(1)		-		(1)
Accrual at June 30, 2014	$	234	$	20	$	254

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 Company reserved $0.6 million at December 31, 2013, which included the lump sum amount, the market value of the common stock on December 31, 2013 and $0.1 million in legal expenses incurred as of December 31, 2013, which is included in accrued expenses and other current liabilities in the accompanying balance sheet. The settlement was paid and stock issued in April 2014, and the Company recorded an additional $0.1 million related to the increase in the fair value of its common stock at the time of issuance. See note 13 for further discussion.

In the six months ended June 30, 2014, the Company also incurred $0.1 million related to the settlement of a customer dispute.

- 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.

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