Balance Sheet Components

9 Months Ended

Sep. 30, 2024

Inventories consist of the following as of the periods indicated:


(in thousands)	September 30, 2024		December 31, 2023
Raw materials	$	26,373	$	24,406

Finished goods	47,070		66,915
Total inventories	$	73,443	$	91,321

During the nine months ended September 30, 2024, the Company recognized $22.7 million of inventory charges for discontinued, excess, obsolete inventory, including the write-down of Delivery System inventory to its net realizable value and the write-off of excess raw materials.

Accrued payroll-related expenses consist of the following as of the periods indicated:


(in thousands)	September 30, 2024		December 31, 2023
Accrued compensation and payroll taxes	$	9,358	$	10,458
Accrued sales commissions	4,937		7,565
Accrued benefits	2,248		4,005
Total accrued payroll-related expenses	$	16,543	$	22,028

Other accrued expenses consist of the following as of the periods indicated:


(in thousands)	September 30, 2024		December 31, 2023
Sales and VAT tax payables	$	5,404	$	4,971
Accrued interest	3,486		2,344
Royalty liabilities	3,424		3,914
Deferred revenue	3,263		450
Other	12,516		8,167
Total other accrued expenses	$	28,093	$	19,846

As of September 30, 2024 and December 31, 2023, the Company has approximately $3 million and $15 million, respectively, of non-trade receivables from certain of its manufacturing vendors resulting from the sale of components to these vendors who manufacture or assemble final products for the Company, which is included in prepaid expenses and other current assets on the Consolidated Balance Sheets. The Company purchases components directly from suppliers and do not reflect the sale of these components to the manufacturing vendors in net sales.

During the three months ended September 30, 2024, in connection with the Company’s manufacturing optimization plans, the Company recorded approximately $8 million of contract termination related costs, which was recorded within cost of sales on the Condensed Consolidated Statements of Comprehensive Income (Loss). As of September 30, 2024, the Company has accrued approximately $2 million for the contract termination related costs, which was included in other accrued expenses on the Condensed Consolidated Balance Sheets.

As of September 30, 2024, total warranty reserve was approximately $6 million, which was included in other accrued expenses on the Condensed Consolidated Balance Sheets. As of December 31, 2023, total warranty reserve was approximately $6 million, of which approximately $4 million was included in other accrued expenses and approximately $2 million was included in other long-term liabilities on the Consolidated Balance Sheets.

As of September 30, 2024, the Company has approximately $2 million in restricted cash held as collateral for the Company’s credit cards.