Quarterly report pursuant to Section 13 or 15(d)


9 Months Ended
Sep. 30, 2020
Restructuring and Related Activities [Abstract]  

Note 12 – Restructuring


In March 2020, the Company adopted the 2020 Plan in response to the ongoing disruptions from the COVID-19 outbreak, and to better align its cost structure with the resources required to more efficiently and effectively execute on its commercial strategy of creating a strong foundation in the market by establishing national and regional hospital networks as Pure Vu reference centers. Most significantly, the 2020 Plan resulted in the reduction of the Company's overall headcount by approximately 50%, including a significant reduction of the Company's commercial team in the US, the implementation of tighter expense controls, and the termination of the lease of the Company's planned corporate office facility in Norwood, Massachusetts. These activities were initiated in the first quarter of 2020, with the majority of activity completed in the second quarter of 2020.


During the three and nine months ended September 30, 2020, the Company recorded charges of $0 and $624, respectively, related to the 2020 Plan. Of that amount, the Company paid $8 during the third quarter of 2020.


The outstanding restructuring liabilities are included in accounts payable and accrued expenses on the condensed consolidated balance sheet. As of September 30, 2020, the components of the liabilities were as follows:


Severance and Other
Benefits (1)
    Lease Termination and Other (2)     Total  
Balance as of January 1, 2020   $ -     $ -     $ -  
Restructuring expenses     445       179       624  
Cash payments     (445 )     (170 )     (615 )
Non-cash charges     -       (9 )     (9 )
Liability included in accounts payable and accrued expenses at September 30, 2020   $ -     $ -     $ -  


  (1) Employee severance and other benefits expenses were included in sales and marketing expense and research and developments expense in the statements of comprehensive loss.


  (2) Lease termination and other consists of lease termination fees and fixed asset impairments. Lease termination was included in general and administrative expenses in the statement of comprehensive loss and fixed asset impairments were included in general and administrative expenses and research and development expenses in the statement of comprehensive loss.