RESTRUCTURING COSTS |
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| Restructuring and Related Activities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| RESTRUCTURING COSTS |
13. 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.
The difference between the free cash flow and the expense savings represents amounts which were previously capitalized as part of software capitalization. A majority of the impacted employees exited in the fourth quarter of 2023. The Company estimates that it will incur expenses of approximately $900,000 related to the reduction in workforce of which approximately $645,000 was incurred in 2023, with the remaining expenses to be incurred in 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 following table summarizes restructuring costs which are included in net loss on lease termination, unoccupied lease charges and restructuring costs in the December 31, 2023 consolidated statement of operations:
The expense associated with the restructuring is included in net loss on lease terminations, unoccupied lease charges and restructuring cost in the consolidated statement of operations for the year ended December 31, 2023. This line also includes $291,000 for net loss on lease terminations and $169,000 for unoccupied lease charges. The liabilities associated with restructuring costs are included in accrued expenses and other current liabilities in the December 31, 2023 consolidated balance sheet. The following table summarizes activity related to liabilities associated with restructuring costs:
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