Related Party Transactions

6 Months Ended

Jun. 30, 2024

Related Party Transactions [Abstract]

Related Party Transactions

NOTE 11. RELATED PARTY TRANSACTIONS

The Company has a license agreement dated July 1, 2017 for certain intellectual property with an entity that is affiliated with one of the directors of the Company, under which the Company pays a royalty of four percent (4%) of net revenue related to the licensed intellectual property for the 15 years following the date of first sale, including a minimum annual payment of $250. The term of the agreement is 20 years and it automatically renews for five-year periods thereafter. Payments to the entity under this license agreement totaled $53 and $156 for the three months ended June 30, 2024 and 2023, respectively. Payments to the entity under this license agreement totaled $199 and $201 for the six months ended June 30, 2024 and 2023, respectively. Amounts payable to this entity as of June 30, 2024 and December 31, 2023 were $72 and $155, respectively.

The Company paid professional services fees to a related party totaling $5 and $115 for the three months ended June 30, 2024 and 2023, respectively, and $18 and $115 for the six months ended June 30, 2024 and 2023, respectively, and are included in Selling, general, and administrative expense in the Condensed Consolidated Statements of Operations and Comprehensive Loss. Amounts payable as of June 30, 2024 and December 31, 2023 to this related party were $8 and $16, respectively.