During the fiscal year ended June 30, 2026, as part of a strategic review of organizational structure and operations, the Company implemented a cost reduction and restructuring program to align its cost structure with demand expectations in its business. Employee separation and benefit costs included in selling, general, and administrative expenses for the quarter ended September 30, 2026 were $1.7 million.

Accrued restructuring costs are included in accrued expenses and other current liabilities on the Condensed Consolidated Balance Sheets. The following table represents activity for the quarter ended September 30, 2026:


	Accrued Expenses
	(in thousands)
Balance at June 30, 2026	$	1,570
Charged to expense	1,653
Cash payments	(352)
Balance at September 30, 2026	$	2,871

The remaining balance as of September 30, 2026 of $2.9 million is expected to be paid through the fourth quarter of fiscal year 2028.