Consolidated Balance Sheet Components

12 Months Ended

Dec. 31, 2024

Accounts Receivable, net

Accounts receivable and allowance for credit losses consisted of the following (in thousands):


	As of December 31,
	2024		2023
Accounts receivable	$	6,005	$	5,128
Allowance for credit losses	(1,299)		(1,061)
Accounts receivable, net	$	4,706	$	4,067

During the years ended December 31, 2024 and 2023, the Company increased the allowance for credit losses in general and administrative expenses in the consolidated statements of operations by $0.2 million and $0.2 million, respectively. The Company recorded write-offs of $0.1 million during the year ended December 31, 2024. No write-offs were recorded during the year ended December 31, 2023. No recoveries were recorded during the years ended December 31, 2024 and 2023.

Prepaid Expenses and Other Current Assets

Prepaid expenses and other current assets consisted of the following (in thousands):


	As of December 31,
	2024		2023
Indemnity escrow receivable(1)	$	3,070	$	1,581
Prepaid software	1,843		1,484
Term deposits (greater than 90 days)	1,068		7,694
Prepaid insurance	956		1,084
Other prepaid expenses	689		801
Other current assets	579		609
Prepaid expenses and other current assets	$	8,205	$	13,253

(1) The Company filed a claim against the indemnity escrow related to the acquisition of IRA Services, Inc. The indemnity escrow account held as collateral had total assets of $3.5 million of cash and 585,959 shares of the Company's common stock with a fair value of $0.5 million as of December 31, 2024.

Internal-Use Software, Property and Equipment, Net

Internal-use software, property and equipment, net consisted of the following (in thousands):


	As of December 31,
	2024		2023
Capitalized internal-use software	$	9,347	$	9,000
Computer equipment	163		125
Furniture and fixtures	579		485
Leasehold improvements	1,296		866
	$	11,385	$	10,476
Less: accumulated depreciation and amortization	(8,465)		(5,284)
Internal-use software and property and equipment, net	$	2,920	$	5,192

For the years ended December 31, 2024 and 2023, the Company recorded amortization expense on capitalized internal-use software placed in service of $2.6 million and $2.8 million, respectively. The Company did not record an impairment loss for internally developed software for the year ended December 31, 2024. For the year ended December 31, 2023, the Company recorded $0.6 million of impairment loss for internally developed software that was put into service but will no longer be used. The impairment loss is included in general and administrative expense within the consolidated statements of operations.

For the years ended December 31, 2024 and 2023, the Company recorded depreciation expense related to property and equipment of $0.6 million and $0.2 million, respectively. For the years ended December 31, 2024 and 2023, there were no impairment losses recorded by the Company. Property and equipment located outside of the United States are not material in any of the periods presented.

Accrued Expenses and Other Current Liabilities

Accrued expenses and other current liabilities consist of the following (in thousands):


	As of December 31,
	2024		2023
Payable to client(1)	$	1,679	$	1,693
Accrued taxes and deferred tax liabilities	1,575		1,479
Accrued other professional services	704		696
Contract liabilities	575		400
Accrued legal(2)	356		2,470
Common stock unvested liability	72		223
Other current liabilities(3)	1,350		1,900
Accrued expenses and other current liabilities	$	6,310	$	8,861

(1) Payable to clients represents funds held in escrow for the benefit of custodial clients.

(2) Accrued legal includes recurring legal fees and accruals for loss contingencies. See Note 7, "Commitments and Contingencies" for additional information.

(3) The Company recognized $0.4 million and $0.4 million of revenue during the years ended December 31, 2024 and 2023, respectively, that was included in the opening deferred revenue balances recorded in accrued expenses and other current liabilities.