Commitments and contingencies

12 Months Ended

Dec. 31, 2023

Commitments and Contingencies Disclosure [Abstract]

Commitments and contingencies

Commitments and contingencies

Legal matters

In the normal course of our business, we are named from time to time as a defendant in various legal actions, including arbitration. The Company accrues for matters when losses are probable and can be reasonably estimated. At December 31, 2023 and 2022, the Company's accruals for legal matters were immaterial. For certain matters, it is inherently difficult to determine whether a loss is probable or reasonably possible or to estimate the size or range of the possible loss. While the Company believes that appropriate accruals have been established for losses that are probable and can be reasonably estimated, it is possible that adverse outcomes from such proceedings could exceed the amounts accrued by an amount that could be material to our results of operations or cash flows in any particular reporting period.

A putative class action lawsuit is pending against the Company in the United States District Court for the Central District of California that alleges claims under the federal securities laws, including that the Company made false and/or misleading statements and/or omissions concerning operations, prospects, and internal control over financial reporting. The Company is currently unable to estimate any reasonably possible material loss or range of loss that may result from this action.

Various other legal actions, claims, and proceedings are pending against the Company, including, but not limited to, matters arising out of alleged product defects; employment-related matters; product warranties; and consumer protection laws. The Company also from time to time receives subpoenas and other inquiries or requests for information from agencies or other representatives of U.S. federal, state, and foreign governments.

In November 2021, the Company entered into a long-term supply agreement with a minimum volume commitment with a third party, which provides raw materials. Any purchase order issued under this supply agreement will be non-cancellable. To the extent the Company fails to order the minimum volume defined in the contract at the end of each year, the Company is required to pay the counterparty in the subsequent year an amount equal to the shortfall, if any, multiplied by a fee. Based on the facts and circumstances at this time, the Company believes that the inability to meet the future minimum volume commitments is probable and an accrual for the shortfall amount has been accrued. As of December 31, 2023 the Company recognized as an NRV write down of approximately $25.6 million estimated shortfall within "Cost of Goods Sold" financial statement line item on the Statement of operations as of December 31, 2023.