Certain Balance Sheet Accounts

3 Months Ended

Mar. 31, 2024

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Allowance for Credit Losses

The Company records its accounts receivable at sales value and maintains an allowance for its current estimate of expected credit losses. Provisions for expected credit losses are estimated based on historical experience, assessment of specific risk, review of outstanding invoices, and forecasts about the future. The Company establishes specific reserves for customers in an adverse financial condition and adjusts for its expectations of changes in conditions that may impact the collectability of outstanding receivable.

The following table summarizes the Company's allowance for credit losses for the three months ended March 31, 2024 and 2023:


Allowance for credit losses:	Beginning Balance		Charges to Expense	Charges to Revenue	Write-offs	Ending Balance
Three Months Ended March 31, 2023	$	3,013	83	(20)	(128)	$	2,948
Three Months Ended March 31, 2024	$	3,322	(388)	56	(2,490)	$	500

Write-offs for the three months ended March 31, 2024 related to a settlement agreement with a former retailer for past due receivables which had previously been charged to the provision for credit losses in a prior period. A benefit was recognized during the three months ended March 31, 2024, which represented a partial recovery of the past due receivables in connection with the settlement.

Inventory

Substantially all of the Company’s inventory consisted of finished goods as of March 31, 2024 and December 31, 2023.

Property and Equipment, net

Property and equipment consisted of the following as of:


	March 31, 2024		December 31, 2023
Tooling and manufacturing equipment	$	2,633	$	2,632
Furniture and fixtures	633		639
Computer equipment	335		348
Software	106		106
Leasehold improvements	35		35
Total property and equipment	3,742		3,760
Less accumulated depreciation and amortization	(3,458)		(3,383)
Property and equipment, net	$	284	$	377

Depreciation and amortization expense on property and equipment was $93 and $274 for the three months ended March 31, 2024 and March 31, 2023, respectively. For the three months ended March 31, 2024 and March 31, 2023, the Company allocated $85 and $182, respectively, of depreciation and amortization expense related to tooling and manufacturing equipment and software to cost of revenues.

Intangible Assets Subject to Amortization

Intangible assets were $2,209, net of accumulated amortization of $296 as of March 31, 2024, and $2,210, net of accumulated amortization of $280, as of December 31, 2023.

Capitalized software development costs were $1,873 on March 31, 2024 and December 31, 2023. 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 three months ended March 31, 2024 or 2023.

The Company did not recognize any impairment charges for intangible assets during the three months ended March 31, 2024 or 2023.

Accrued and Other Expenses

Accrued and other expenses, among other things, included accrued sales returns of $1,281 and $2,919 as of March 31, 2024 and December 31, 2023, respectively.

Changes in accrued warranty were as follows:


	For the Three Months Ended March 31,
	2024		2023
Accrued warranty, beginning of period	$	782	$	712
Provision for warranties issued during the period	177		35
Settlements of warranty claims during the period	(191)		(155)
Accrued warranty, end of period	$	768	$	592

Preferred Stock

The Company is authorized to issue up to 10,741,071 shares of $0.0001 par value preferred stock, of which 36,700 and 28,628 shares were outstanding as of March 31, 2024 and December 31, 2023, respectively. See Note 7 - Convertible Preferred Stock and Common Stock Warrants of this Report for more information.