9. RESTRUCTURING COSTS

On October 2, 2023, the Company committed to effectively align resources with business priorities and improve profitability through a reduction in the workforce for the Healthcare IT segment. The Company identified opportunities for improvements in its workforce realignment, strategy and staffing, and increased its focus on performance management, to ensure it has the right skillsets and number of employees to execute its long-term vision. In addition, the Company instituted certain other expense reductions.

A majority of the impacted employees exited in the fourth quarter of 2023. The Company estimates that it will incur expenses of approximately $1.3 million related to the reduction in workforce of which approximately $645,000 was incurred in 2023, $67,000 and $505,000 was incurred during the three and nine months ended September 30, 2024 with the remaining expenses to be incurred during the remainder of 2024. These restructuring expenses consisted of one-time termination benefits, including, but not limited to, severance payments and healthcare benefits. Also as previously noted, the dividends on the Preferred Stock have been suspended in order to increase cash flow.

The expense associated with the restructuring is included in loss on lease terminations, unoccupied lease charges and restructuring cost in the condensed consolidated statement of operations for the three and nine months ended September 30, 2024. This line also includes loss on lease terminations and unoccupied lease charges. The liabilities associated with restructuring costs are included in accrued expenses in the September 30, 2024 and December 31, 2023 condensed consolidated balance sheets. The following table summarizes activity related to liabilities associated with restructuring costs:

 SCHEDULE OF LIABILITIES ASSOCIATED WITH RESTRUCTURING COSTS