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Certain Balance Sheet Accounts
 12 Months Ended
Dec. 31, 2024
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Certain Balance Sheet Accounts Certain Balance Sheet Accounts
Restricted Cash

The Company’s restricted cash consists of cash collateral that is held by the Company’s financial institutions to secure its financing arrangements. Specifically, restricted cash that is classified within current assets in the consolidated balance sheets consists of cash collateral to secure its current credit card borrowings and long-term term-loan facility. Cash as reported on the consolidated statements of cash flows includes the aggregate amounts of cash, cash equivalents, and restricted cash as shown on the consolidated balance sheets and consists of the following (in thousands):
December 31,
20242023
Reconciliation of cash, cash equivalents, and restricted cash reported in the consolidated balance sheets:
Cash and cash equivalents$20,245 $16,557 
Restricted cash386 — 
Total cash, cash equivalents, and restricted cash$20,631 $16,557 

Allowance for Credit and Other Losses

The Company records its accounts receivable at sales value and maintains an allowance for its current estimate of expected credit losses from customers. 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 receivables.

Changes in the Company's allowance for credit and other losses were as follows (in thousands):
Year Ended December 31,
20242023
Beginning balance$3,322 $3,013 
Charges to expense(193)1,020 
Charges to revenue38 (29)
Write-offs(2,514)(682)
Ending balance$653 $3,322 

Write-offs for the year ended December 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 to charges to expense during the year ended December 31, 2024, which represented a partial recovery of the past due receivables in connection with the settlement.

Inventory

Details of inventory were as follows (in thousands):
December 31,
20242023
Raw materials$100 $688 
Finished goods10,423 5,805 
Total inventory$10,523 $6,493 

Property and Equipment, net

Property and equipment consisted of the following (in thousands):
December 31,
20242023
Tooling and manufacturing equipment$2,618 $2,632 
Computer equipment322 348 
Furniture and fixtures289 639 
Software106 106 
Leasehold improvements35 35 
Total property and equipment3,370 3,760 
Less: accumulated depreciation and amortization(3,268)(3,383)
Property and equipment, net$102 $377 

Depreciation and amortization expense on property and equipment was $306 and $765 for the years ended December 31, 2024 and 2023, respectively. For the years ended December 31, 2024 and 2023, the Company allocated $281 and $473, respectively, of depreciation and amortization expense related to tooling and manufacturing equipment within cost of revenues on the consolidated statements of operations. The remaining depreciation and amortization expense related to property and equipment was recorded within general and administrative expenses.
Intangible Assets, net

The carrying amounts of intangible assets consisted of the following (in thousands):
December 31, 2024
Gross carrying amountAccumulated amortizationNet carrying amount
Trademarks and patents$677 $(346)$331 
Internally developed software725 (81)644 
Total intangible assets$1,402 $(427)$975 

December 31, 2023
Gross carrying amountAccumulated amortizationNet carrying amount
Trademarks and patents$617 $(280)$337 
Internally developed software1,873 — 1,873 
Total intangible assets$2,490 $(280)$2,210 

Amortization expense of intangible assets was $147 and $77 for the years ended December 31, 2024 and 2023, respectively. For the years ended December 31, 2024 and 2023, the Company recorded $81 and $0, respectively, of amortization expense related to internally developed software within cost of revenues on the consolidated statements of operations. The remaining amortization expense related to trademarks and patents was recorded within general and administrative expenses.

As of December 31, 2024, the estimated future amortization expenses and reconciliation to total intangible assets consisted of the following (in thousands):
Year Ended December 31,Amount
2025$303 
2026301 
2027209 
202838 
202925 
Thereafter41 
Total future amortization expenses$917 
Trademarks and patents not yet subject to amortization58 
Total intangible assets$975 

In 2021, the Company began work on an internally developed software project and during 2021 and 2022 total costs of $1,873 were capitalized within intangible assets on the balance sheet. Due to financial constraints the Company was experiencing in 2022, work on the project was paused and each subsequent period the Company reconsidered the probability that the project would be resumed when the Company’s financial condition allowed and whether any technological developments had changed the prospects for the project's eventual success and recovery of the carrying amount of the asset. Because the software was still in development and not ready for general release the Company did not recognize any amortization for the years ended December 31, 2024 and 2023 and did not recognize any impairment charges related to intangible assets during the year ended December 31, 2023. However, in September of 2024, the Company made the decision to extend the pause of this particular software development project indefinitely, indicating that the carrying amount of the asset was unlikely to be recoverable. The Company recognized an impairment charge of $1,873 during the year ended December 31, 2024, to impair the software costs previously capitalized on the project, which was recorded within general and administrative expenses on the consolidated statements of operations.
Accrued and Other Expenses

Accrued and other expenses consisted of the following (in thousands):
December 31,
20242023
Accrued payroll$3,639 $1,056 
Accrued sales discounts1,773 2,528 
Accrued sales returns9022,919
Accrued legal settlements5,3430
Other4,7218,548
Total accrued and other expenses$16,378 $15,051 

Changes in accrued warranty were as follows (in thousands):
Year Ended December 31,
20242023
Accrued warranty, beginning of period$782 $712 
Settlements of warranty claims during the period(754)(504)
Provision for warranties issued during the period1,615 1,244 
Changes in provision for pre-existing warranties(1,352)(670)
Accrued warranty, end of period$291 $782