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Commitments and Contingencies
3 Months Ended
Mar. 31, 2025
Commitments And Contingencies Disclosure [Abstract]  
Commitments and Contingencies

Note 14. Commitments and Contingencies

The following table summarizes the Company’s principal contractual commitments, excluding operating leases, as of March 31, 2025 (in thousands):

 

 

Purchase
Commitments

 

 

Other
Contractual
Commitments

 

 

Total

 

2025 (remaining nine months)

 

$

2,455

 

 

$

564

 

 

$

3,019

 

2026

 

 

 

 

 

 

 

 

 

2027

 

 

 

 

 

 

 

 

 

2028

 

 

 

 

 

 

 

 

 

2029

 

 

 

 

 

 

 

 

 

Total

 

$

2,455

 

 

$

564

 

 

$

3,019

 

 

Purchase commitments for inventories are highly dependent upon forecasts of customer demand. Due to the uncertainty in demand from its customers, the Company may have to change, reschedule, or cancel purchases or purchase orders from its suppliers. These changes may lead to vendor cancellation charges on these purchases or contractual commitments.

The following table summarizes the Company’s warranty accrual account activity during the three months ended March 31, 2025 and 2024:

 

 

 

Three Months Ended March 31,

 

 

 

2025

 

 

2024

 

Balance at beginning of period

 

$

214

 

 

$

217

 

Charged (credited) to cost of revenue

 

 

127

 

 

 

(76

)

Cost of warranty claims

 

 

 

 

 

 

Balance at end of period

 

$

341

 

 

$

141

 

 

The Company provides warranties on certain product sales for periods ranging from 12 to 36 months, and allowances for estimated warranty costs are recorded during the period of sale. The determination of such allowances requires the Company to make estimates of product return rates and expected costs to repair or to replace the products under warranty. The Company currently establishes warranty reserves based on historical warranty costs for each product line combined with liability estimates based on the prior 12 months’ sales activities. If actual return rates and/or repair and replacement costs differ significantly from the Company’s estimates, adjustments to recognize additional cost of sales may be required in future periods. Historically, the warranty accrual and the expense amounts have been immaterial.