During the first and third quarters of 2023, the Company announced restructuring plans intended to reduce operating costs, improve operating margins, and continue advancing the Company’s ongoing commitment to profitable growth. During the year ended December 31, 2023, the Company incurred restructuring and related charges of $4.7 million, consisting primarily of severance payments, employee benefits, and related cash expenses. These charges were recognized within transaction, integration, and restructuring expenses in the Company’s consolidated statements of operations. As of December 31, 2023, $0.1 million is included in accrued expenses and other liabilities in the consolidated balance sheets. The Company expects these payments will be made over the next three months.

Furthermore, on January 3, 2024, the Company committed to an additional restructuring plan with similar objectives. The Company estimates that in the first half of 2024, it will incur pre-tax cash restructuring and related charges of approximately $6.5 million to $7.2 million, consisting primarily of severance payments, employee benefits, and related cash expenses, as well as an approximate $1.5 million non-cash stock-based compensation charge related to the vesting of share-based awards for employees who are terminated. The Company expects these actions will be substantially complete by the end of the second quarter of 2024.

In the first quarter of 2023, the Company began a review of its sales tax positions, and related accounting matters, with the assistance of outside consultants. As a result of the review, the Company determined during the second quarter of 2023 that sales in certain states were subject to sales tax and that the Company had not assessed such sales tax on sales of its services to customers. As of December 31, 2023 and 2022, the Company has recorded a sales tax accrual, which includes assumed maximum penalties and interest, of $6.7 million and $8.1 million, respectively.