Certain Balance Sheet Accounts

9 Months Ended

Sep. 30, 2022

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Certain Balance Sheet Accounts

Certain Balance Sheet Accounts

Inventory

Substantially all of the Company's inventory consisted of finished goods as of September 30, 2022 and December 31, 2021.

Property and Equipment, net

Property and equipment consisted of the following as of:

	September 30, 2022		December 31, 2021
Tooling and manufacturing equipment	$	2,694	$	2,333
Furniture and fixtures	639		579
Computer equipment	667		625
Software	213		213
Leasehold improvements	29		26
Total property and equipment	4,242		3,776
Less accumulated depreciation and amortization	(2,867)		(1,906)
Property and equipment, net	$	1,375	$	1,870

Depreciation and amortization expense on property and equipment was $332 and $253 for the three months ended September 30, 2022 and September 30, 2021, respectively. For the three months ended September 30, 2022 and September 30, 2021, the Company allocated $210 and $160, respectively, of depreciation expense related to tooling and manufacturing equipment to cost of revenues.

Depreciation and amortization expense on property and equipment was $966 and $691 for the nine months ended September 30, 2022 and September 30, 2021, respectively. For the nine months ended September 30, 2022 and September 30, 2021, the Company allocated $608 and $457, respectively, of depreciation expense related to tooling and manufacturing equipment to cost of revenues.

Intangible Assets Subject to Amortization

Intangible assets were $2,325, net of accumulated amortization of $473 as of September 30, 2022 and $1,696, net of accumulated amortization of $329, as of December 31, 2021.

Capitalized software development costs were $1,873 and $1,101 as of September 30, 2022 and December 31, 2021, respectively. The Company's internally developed software capitalized within intangible assets on the balance sheet is still in development and not ready for general release. As such, the Company has not recognized any amortization for the nine months ended September 30, 2022.

The Company recognized $41 of impairment charges during the three and nine months ended September 30, 2022 to fully impair content-related intangible assets no longer in use. The Company did not recognize any impairment charges related to intangible assets during the three and nine months ended September 30, 2021.

Accrued and Other Expenses

Accrued and other expenses, among other things, included accrued sales returns of $8,897 and $21,179 as of September 30, 2022 and December 31, 2021, respectively. As described in Note 1, $6,843 and $20,145 of the accrued sales returns as of September 30, 2022 and December 31, 2021, respectively, was attributable to returns resulting from the Warning Letter.

Changes in accrued warranty were as follows:

	For the Three Months Ended September 30,
	2022		2021
Accrued warranty, beginning of period	$	775	$	992
Provision for warranties issued during the period	157		485
Settlements of warranty claims during the period	(118)		(287)
Accrued warranty, end of period	$	814	$	1,190

	For the Nine Months Ended September 30,
	2022		2021
Accrued warranty, beginning of period	$	661	$	924
Provision for warranties issued during the period	550		708
Settlements of warranty claims during the period	(397)		(442)
Accrued warranty, end of period	$	814	$	1,190

Stockholders' Equity

The Company is authorized to issue up to 100,000,000 shares of $0.0001 par value preferred stock, of which none is currently outstanding.