Impairment Expense and Loss, Net, on Disposal of Machinery and Equipment

12 Months Ended

Dec. 31, 2024

Discontinued Operations and Disposal Groups [Abstract]

Impairment Expense and Loss, Net, on Disposal of Machinery and Equipment

Impairment Expense and Loss, Net, on Disposal of Machinery and Equipment

In February 2023, the Company started to execute a strategy to increase imports and scale back manufacturing in certain locations. The Company reached an agreement with two unrelated third-party vendors in Taiwan to sell them certain of its manufacturing machinery and equipment. The Company also cancelled certain equipment purchase commitments that it had previously paid deposits towards, and disposed of certain machinery and equipment through abandonment.

As discussed in Note 14 — Leases, the Company recorded a non-cash impairment of a ROU asset resulting from the sublease of its City of Industry warehouse in California in the year ended December 31, 2024.

The following table represents impairment expense and loss, net, on disposal of machinery:

	Year Ended December 31,
	2024		2023
	(in thousands)
Loss, net, on disposal of machinery in scaling back manufacturing	$	—	$	1,609
Loss, net, on disposal of machinery within normal course of business	759		393
Loss, net, on disposal	759		2,002
Impairment of ROU asset	1,993		—
Impairment of deposits	—		523
Total impairment expense and loss, net, on disposal of machinery	$	2,752	$	2,525