INVENTORIES

9 Months Ended

Sep. 30, 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 in the first half of 2020 (the “Strategic Review”). As a result of the Strategic Review, the Company determined to discontinue the BRAVEN audio brand, exit the fitted 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 first quarter of 2020 of $44,833, which was included in the cost of sales in the condensed consolidated statements of operations.

Inventories consisted of the following as of September 30, 2020, and December 31, 2019:


	September 30, 2020		December 31, 2019

Finished goods	$	78,702	$	142,054
Raw materials	1,322		2,890
Total inventories	$	80,024	$	144,944

Included in prepaid expenses and other current assets were inventory deposits with third-party manufacturers of $4,961 and $148 as of September 30, 2020, and December 31, 2019, respectively.