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Accrued and Other Current Liabilities
12 Months Ended
Dec. 31, 2019
Accrued Liabilities And Other Liabilities [Abstract]  
Accrued and Other Current Liabilities

8.ACCRUED AND OTHER CURRENT LIABILITIES

Accrued expenses and other current liabilities consisted of the following as of December 31, 2018 and 2019:

 

 

 

December 31,

2018

 

 

December 31,

2019

 

Accrued compensation costs

 

$

2,585

 

 

$

300

 

Accrual for deferred financing fees

 

 

936

 

 

 

 

Accrued professional fees and consultants

 

 

484

 

 

 

400

 

Accrued logistics costs

 

 

1,424

 

 

 

2,326

 

Product related accruals

 

 

1,042

 

 

 

1,518

 

Sales tax payable

 

 

707

 

 

 

507

 

Sales return reserve

 

 

322

 

 

 

456

 

Accrued recall liability

 

 

1,512

 

 

 

90

 

Seller note from acquisition (Note 16)

 

 

 

 

 

195

 

Prepaid insurance financing

 

 

 

 

 

1,031

 

All other accruals

 

 

696

 

 

 

682

 

Accrued and other current liabilities

 

$

9,708

 

 

$

7,505

 

 

The Company sponsors, through its professional employer organization provider, a 401(k) defined contribution plan covering all eligible US employees. Contributions to the 401(k) plan are discretionary. Currently, the Company does not match nor make any contributions to the 401(k) plan.

Recall

In April 2018, the Company retained outside counsel to assist it in evaluating a safety issue related to certain hair dryers that it imported and sold through its subsidiaries between 2014 and 2018 (the “Xtava Allure Hair Dryer”). The Company had received communications directly from consumers and identified online reviews of overheating or fires associated with these hair dryers. The Company sold approximately 170,000 net units from the introduction of the product in 2015 through its discontinuance in the first quarter of 2018 totaling approximately $6.2 million in net revenue.

In May 2018, the Company’s board of directors approved a voluntary recall of the Xtava Allure Hair Dryer. In June 2018, the Company filed an application for a voluntary recall with the US Consumer Product Safety Commission (“CPSC”) pursuant to Section 15(b) of the Consumer Product Safety Act (“CPSA”). The Company received approval from the CPSC to provide consumers with replacement units and publicly announced the recall on August 15, 2018. The Company had estimated that it would incur approximately $1.6 million in costs related to the recall for procurement, manufacturing, fulfillment and delivery to consumers who apply and qualify for the recall costs. The Company has incurred and settled all but one consumer legal matter related to Xtava Allure Hair Dryer for insignificant amounts. As of December 31, 2019, the Company has incurred $0.1 million in recall costs. In August 2019, the Company received notice that it has materially completed its obligations under the recall program and, as a result, has reversed $1.4 million of the remaining liability pertaining to the program. As of December 31, 2019, the remaining recall liability is $0.1 million.