|3 Months Ended|
Mar. 31, 2022
|Restructuring and Related Activities [Abstract]|
|RESTRUCTURING EXPENSE||RESTRUCTURING EXPENSE
The Company has been reviewing, planning and implementing various strategic initiatives targeted principally at reducing costs, enhancing organizational efficiency and optimize its business model. As part of this process, the Company recorded a restructuring charge of approximately $4,008 related to asset write off, severance, and other related costs for the three months ended March 31, 2022.
Asset write off – With the recent passage of Regulation 227 in February 2022 and the Joint Resolution 539 of 2022 by the Colombian Government in April 2022, the Company will be able to export cannabis flower for medicinal use. With this significant new opportunity opening up, the Company evaluated its current production capacity for cannabis extracts and thus identified the need to scale back on some of the extraction capacity and related assets. Excess assets, including a large extractor, was identified and abandoned for a total of $2,773 during the three months ended March 31, 2022.
Reduction-in-workforce - The Company approved plans to reduce its workforce in various departments across multiple geographies to effectively align its resources and manage operating costs, which resulted in a total charge of approximately $1,235 of severance cost for the three months ended March 31, 2022 related to the workforce reductions. As of March 31, 2022, we paid $89 of the total $1,235 of severance cost and $1,146 of accrued termination related costs remained outstanding as part of "Other long-term liabilities" on our statement of financial position.
The entire disclosure of costs incurred for restructuring including, but not limited to, exit and disposal activities, remediation, implementation, integration, asset impairment, and charges against earnings from the write-down of assets.
No definition available.