Quarterly report pursuant to Section 13 or 15(d)

Reorganization and Related Exit Costs

v3.24.3
Reorganization and Related Exit Costs
 9 Months Ended
Sep. 30, 2024
Restructuring and Related Activities [Abstract]  
Reorganization and Related Exit Costs Reorganization and Related Exit Costs
In August 2024, the Company initiated an employee reorganization plan (the “Employee Reorganization Plan”), which includes a reduction of the number of employees in its Torrance, California (the “Torrance Facility”), and the relocation of remaining employees, inventory and certain fixed assets to the Company’s Oklahoma or Texas facilities.

As part of the Employee Reorganization Plan, the Company will incur non- recurring move costs, employee relocation benefits, severance and other related exit costs, as well as recognize certain non-cash impairment charges resulting from or associated with the Torrance Facility.

The following table summarizes the costs recorded during the three months and nine months ended September 30, 2024 and the remaining liabilities as of September 30, 2024 (in thousands):

Costs Recognized
Remaining Liability as of September 30, 2024
Employee related relocation costs
 $ 2,710  $ 2,591 
Other exit costs
 702  702 
Impairment loss - leasehold improvements
 9,243  — 
Impairment of right-of-use asset - operating lease
 3,400  — 
$ 16,055  $ 3,293 

During the three months ended September 30, 2024, the Company paid $0.1 million related to employee related relocation costs. Of the remaining liability of $3.3 million as of September 30, 2024, $2.6 million is included in Accrued expenses and other current liabilities (refer to Note 9) and $0.7 million is included in Other liabilities. The Company will recognize future move related costs totaling approximately $1.6 million when they are incurred and expects that the move and relocation activities will be substantially completed by March 31, 2025.