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 unaudited condensed consolidated balance sheets consists of cash collateral to secure its current credit card borrowings. Cash as reported on the unaudited condensed consolidated statements of cash flows includes the aggregate amounts of cash, cash equivalents, and restricted cash as shown on the unaudited condensed consolidated balance sheets and consists of the following (in thousands):


	June 30,
	2025		2024
Reconciliation of cash, cash equivalents, and restricted cash reported in the condensed consolidated balance sheets:
Cash and cash equivalents	$	21,827	$	15,363
Restricted cash	300		—
Total cash, cash equivalents, and restricted cash	$	22,127	$	15,363

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.


	Three Months Ended June 30,				Six Months Ended June 30,
	2025		2024		2025		2024
Beginning balance	$	811	$	500	$	653	$	3,322
Charges to expense	(88)		4		7		(384)
Charges to revenue	239		38		302		94
Write-offs	(9)		—		(9)		(2,490)
Ending balance	$	953	$	542	$	953	$	542

Write-offs for the six months ended June 30, 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 six months ended June 30, 2024, which represented a partial recovery of the past due receivables in connection with the settlement.

For the three and six months ended June 30, 2025, a write-off of $347 related to a prepaid deposit for materials determined to have no alternative future use in our research and development efforts was recorded within research and development expenses.


	June 30, 2025		December 31, 2024
Tooling and manufacturing equipment	$	2,164	$	2,618
Computer equipment	380		322
Furniture and fixtures	212		289
Software	106		106
Leasehold improvements	3		35
Total property and equipment	2,865		3,370
Less: accumulated depreciation and amortization	(2,679)		(3,268)
Property and equipment, net	$	186	$	102

Depreciation and amortization expense on property and equipment was $21 and $90 for the three months ended June 30, 2025 and June 30, 2024, respectively. For the three months ended June 30, 2025 and June 30, 2024, the Company allocated $15 and $84, respectively, of depreciation and amortization expense related to tooling and manufacturing equipment within cost of revenues on the unaudited condensed consolidated statements of operations and comprehensive income (loss). The remaining depreciation and amortization expense related to property and equipment was recorded within general and administrative expenses.

Depreciation and amortization expense on property and equipment was $54 and $184 for the six months ended June 30, 2025 and June 30, 2024, respectively. For the six months ended June 30, 2025 and June 30, 2024, the Company allocated $44 and $169, respectively, of depreciation and amortization expense related to tooling and manufacturing equipment within cost of revenues on the unaudited condensed consolidated statements of operations and comprehensive income (loss). The remaining depreciation and amortization expense related to property and equipment was recorded within general and administrative expenses.


	June 30, 2025
	Gross carrying amount		Accumulated amortization		Net carrying amount
Trademarks and patents	$	720	$	(384)	$	336
Internally developed software	857		(217)		640
Total intangible assets	$	1,577	$	(601)	$	976


	December 31, 2024
	Gross carrying amount		Accumulated amortization		Net carrying amount
Trademarks and patents	$	677	$	(346)	$	331
Internally developed software	725		(81)		644
Total intangible assets	$	1,402	$	(427)	$	975

Amortization expense of intangible assets was $88 and $14 for the three months ended June 30, 2025 and 2024, respectively. For the three months ended June 30, 2025 and 2024, the Company recorded $71 and $0, respectively, of amortization expense related to internally developed software within cost of revenues on the unaudited condensed consolidated statements of operations and comprehensive income (loss). The remaining amortization expense related to trademarks and patents was recorded within general and administrative expenses.

Amortization expense of intangible assets was $174 and $30 for the six months ended June 30, 2025 and 2024, respectively. For the six months ended June 30, 2025 and 2024, the Company recorded $136 and $0, respectively, of amortization expense related to

internally developed software within cost of revenues on the unaudited condensed consolidated statements of operations and comprehensive income (loss). The remaining amortization expense related to trademarks and patents was recorded within general and administrative expenses.

As of June 30, 2025, the estimated future amortization expenses and reconciliation to total intangible assets consisted of the following (in thousands):


For the years ended December 31,	Amount
Remaining six months of 2025	$	175
2026	348
2027	256
2028	49
2029	28
Thereafter	55
Total future amortization expenses	$	911
Trademarks and patents not yet subject to amortization	65
Total intangible assets	$	976


	June 30, 2025		December 31, 2024
Accrued payroll	$	3,300	$	3,639
Accrued sales discounts	5,764		1,773
Accrued sales returns	1,246		902
Accrued legal settlements	5,925		5,343
Other	4,744		4,721
Total accrued and other expenses	$	20,979	$	16,378


	Three Months Ended June 30,				Six Months Ended June 30,
	2025		2024		2025		2024
Accrued warranty, beginning of period	$	305	$	768	$	291	$	782
Settlements of warranty claims during the period	(182)		(185)		(369)		(376)
Provision for warranties issued during the period	183		434		307		754
Changes in provision for pre-existing warranties	46		(174)		123		(317)
Accrued warranty, end of period	$	352	$	843	$	352	$	843