Commitments and Contingencies

6 Months Ended

Jun. 30, 2023

Commitments and Contingencies Disclosure [Abstract]

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES

Taxes on Remote Sellers

The Company is subject to state laws or administrative practices with respect to the taxes on remote sellers. In accordance with ASC 450, Contingencies, the Company recorded $1.6 million within sales tax payable on the Company’s condensed balance sheets as of June 30, 2023 and December 31, 2022, as an estimate of contingent sales tax payable.

Inventory Purchase Obligations

Inventory purchase obligations as of June 30, 2023 were $33.1 million. These inventory purchase obligations can be impacted by various factors, including the timing of issuing orders and the timing of the shipment of orders.

Legal Contingencies

Legal claims may arise from time to time in the normal course of business, the results of which may have a material effect on the Company’s accompanying condensed financial statements.

During the three months ended June 30, 2023, the Company had legal actions against it with respect to its litigation with Miracle Ventures I, LP, which concluded in the Company’s favor on May 4, 2023, and a putative securities class action and related derivative suit against the Company and certain of its executive officers and directors.

The Company intends to vigorously defend against such claims. The Company has determined that any potential loss is neither probable nor reasonably estimable and an accrual has not been recorded.

Leases

In the second quarter of 2023, the Company entered into lease agreements with expected commencement dates in the second half of 2023 and first half of 2024. The Company expects to classify these leases as operating leases. The initial terms of the leases range from 5 years to 7 years and the Company expects to record operating lease costs of $47.8 million over the life of the leases.