Syndeo Program

9 Months Ended

Sep. 30, 2024

To stand behind its commitment to its customers and protect the Company’s brand reputation, in October 2023, the Company’s management decided that, with respect to Syndeo devices, the Company would only market and sell Syndeo 3.0 devices. The Company provided, at no cost to the customer, the option of (i) a technician upgrade to their Syndeo 1.0 or 2.0 devices to 3.0 standards in the field; or (ii) a replacement Syndeo 3.0 device for their existing device (the “Syndeo Program”). Additionally, the Company extended the customer’s warranty by one year for each system from the date it was either brought to the 3.0 standards or the customer received a Syndeo 3.0 device. As of September 30, 2024, the Syndeo Program is complete.

As of December 31, 2023, the Company accrued costs of $21.0 million, primarily for the estimated cost to remediate, upgrade or exchange the remaining Syndeo 1.0 and 2.0 builds.

The following table summarizes the Syndeo Program usage for the three and nine months ended September 30, 2024 (in thousands):


Program liability as of December 31, 2023	$	21,009
Usage	(12,695)
Program liability as of March 31, 2024	$	8,314
Usage	(7,402)
Program liability as of June 30, 2024	$	912
Usage	(912)
Program liability as of September 30, 2024	$	—