Prepaid Expenses and Other Current Assets

6 Months Ended

Jun. 30, 2022

Prepaid Expenses And Other Current Assets

Prepaid Expenses and Other Current Assets

7. Prepaid Expenses and Other Current Assets

At June 30, 2022 and December 31, 2021, prepaid expenses and other current assets consisted of the following:

	As of		As of
	June 30,		December 31,
	2022		2021
	(in thousands)
Advances to suppliers	$	1,149	$	188
Prepaid insurance		2,414		1,222
Other current assets		429		875
Total	$	3,992	$	2,285

In Mexico value added (“IVA”) tax assessed on the sales of products and purchases of materials and services. Businesses owe IVA taxes as the business sells a product and collects IVA taxes from its customers. Likewise, businesses are generally entitled to recover the taxes they have paid related to purchases of materials and services, either as a refund or credit to IVA tax payable. Amounts recorded as IVA taxes in the consolidated financial statements represent the net estimated IVA tax payable or receivable, since there is a legal right of offset of IVA taxes. As of June 30, 2022, this resulted in a small asset balance ($0.03 million), which is included in Other current assets above.