Operational Improvement Plan |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2025 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Restructuring and Related Activities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Operational Improvement Plan | Operational Improvement Plan Beginning in the second quarter of fiscal year 2025, management implemented an Operational Improvement Plan to reduce costs and improve the efficiency of certain company-wide functions. These costs pertained primarily to workforce reductions, and the actions for this plan are expected to be completed by the end of fiscal year 2025. In the third quarter of 2025, the Operational Improvement Plan was modified as a result of the relocation of our corporate headquarters and the relocation of our inventory as a result of a change in third-party logistics providers.
Headcount was reduced by approximately 67 employees across the Company as part of the Operational Improvement Plan which includes incremental headcount reduction of 15 employees and 4 employees in the third and fourth quarter, respectively, resulting from the modification of the Operational Improvement Plan in the third quarter of 2025. No liabilities were excluded due to the inability to estimate fair value. For the year ended December 31, 2025, the Company recorded $2,954 of severance expenses as part of the Operational Improvement Plan. As of December 31, 2025, the Company had accrued severance costs of $751, which are expected to be paid by the end of the first quarter of fiscal year 2026. Severance costs are included in "Salaries, wages, and benefits" in our consolidated statements of operations.
The Company also incurred $2,645 of transition costs for the year ended December 31, 2025 as a result of the relocation of our corporate headquarters and the relocation of our inventory during the third and fourth quarters of 2025, consisting of $2,128 of cash expenses and $517 of noncash expenses. In our consolidated statements of operations, $1,834 and $294 of cash costs are reported as “” and "", respectively, in our consolidated statements of operations. All of the noncash expenses are reported as “Cost of goods sold” in our consolidated statements of operations.
As of December 31, 2025, accrued restructuring costs related to the 2025 Operational Improvement Plan, consisted of the following (dollars in thousands):
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