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):


	September 30,
	2025		2024
Reconciliation of cash, cash equivalents, and restricted cash reported in the condensed consolidated balance sheets:
Cash and cash equivalents	$	23,760	$	21,582
Restricted cash	300		300
Total cash, cash equivalents, and restricted cash	$	24,060	$	21,882

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 September 30,				Nine Months Ended September 30,
	2025		2024		2025		2024
Beginning balance	$	953	$	542	$	653	$	3,322
Charges to expense	77		37		84		(347)
Charges to revenue	(251)		37		51		131
Write-offs	(88)		(24)		(97)		(2,514)
Ending balance	$	691	$	592	$	691	$	592

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

For the nine months ended September 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.


	September 30, 2025		December 31, 2024
Tooling and manufacturing equipment	$	2,249	$	2,618
Computer equipment	421		322
Furniture and fixtures	198		289
Software	47		106
Leasehold improvements	3		35
Total property and equipment	2,918		3,370
Less: accumulated depreciation and amortization	(2,628)		(3,268)
Property and equipment, net	$	290	$	102

Depreciation and amortization expense on property and equipment was $32 and $72 for the three months ended September 30, 2025 and September 30, 2024, respectively. For the three months ended September 30, 2025 and September 30, 2024, the Company allocated $14 and $67, 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 $86 and $256 for the nine months ended September 30, 2025 and September 30, 2024, respectively. For the nine months ended September 30, 2025 and September 30, 2024, the Company allocated $58 and $235, 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.


	September 30, 2025
	Gross carrying amount		Accumulated amortization		Net carrying amount
Trademarks and patents	$	751	$	(407)	$	344
Internally developed software	1,174		(302)		872
Total intangible assets	$	1,925	$	(709)	$	1,216


	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 $109 and $45 for the three months ended September 30, 2025 and 2024, respectively. For the three months ended September 30, 2025 and 2024, the Company recorded $85 and $30, 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 $283 and $75 for the nine months ended September 30, 2025 and 2024, respectively. For the nine months ended September 30, 2025 and 2024, the Company recorded $221 and $30, 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 September 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 three months of 2025	$	109
2026	432
2027	340
2028	99
2029	30
Thereafter	61
Total future amortization expenses	$	1,071
Intangible assets not yet subject to amortization	145
Total intangible assets	$	1,216

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 three or nine months ended September 30, 2024.

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 $1,873 of impairment charges during the three and nine months ended September 30, 2024, to fully impair that particular internally developed software project, which was recorded within general and administrative expenses on the unaudited condensed consolidated statement of operations and comprehensive income (loss). Impairment charges related to intangible assets during the three and nine months ended September 30, 2025 were immaterial.


	September 30, 2025		December 31, 2024
Accrued payroll	$	4,803	$	3,639
Accrued sales discounts	3,073		1,773
Accrued sales returns	1,449		902
Accrued legal settlements	5,925		5,343
Other	5,890		4,721
Total accrued and other expenses	$	21,140	$	16,378


	Three Months Ended September 30,				Nine Months Ended September 30,
	2025		2024		2025		2024
Accrued warranty, beginning of period	$	352	$	843	$	291	$	782
Settlements of warranty claims during the period	(310)		(189)		(687)		(660)
Provision for warranties issued during the period	187		455		494		865
Changes in provision for pre-existing warranties	161		(179)		292		(57)
Accrued warranty, end of period	$	390	$	930	$	390	$	930