Inventories

3 Months Ended

Mar. 31, 2020

Inventory Disclosure [Abstract]

INVENTORIES

INVENTORIESDuring the three months ended March 31, 2020, as a result of current and expected 2020 demand reductions due to the COVID-19 pandemic, the Company reassessed the (1) long-term profitability of all brands and product lines, and (2) the recoverability of inventory on-hand (the “Strategic Review”). As a result of the Strategic Review, the Company determined to discontinue the BRAVEN audio brand, exit the battery case product category, and simplify the following product lines: IFROGZ audio, ZAGG keyboards, and mophie power stations. Ultimately, the demand reduction linked to COVID-19 combined with these efforts to exit less profitable categories, resulted in a write-down to inventory during the three months ended March 31, 2020 of $44,833, which is included in the cost of sales in the condensed consolidated statements of operations.

Inventories consisted of the following as of March 31, 2020, and December 31, 2019:

	March 31, 2020		December 31, 2019
Finished goods	$	91,388	$	142,054
Raw materials	2,168		2,890
Total inventories	$	93,556	$	144,944

Included in prepaid expenses and other current assets were inventory deposits with third-party manufacturers of $148 and $148 as of March 31, 2020, and December 31, 2019, respectively.