v3.25.1
Balance Sheet Components
 3 Months Ended
Mar. 31, 2025
Inventory Disclosure [Abstract]  
Balance Sheet Components Balance Sheet Components
Inventories consist of the following as of the periods indicated:

(in thousands)March 31, 2025December 31, 2024
Raw materials$24,225 $26,019 
Finished goods41,407 43,094 
Total inventories $65,632 $69,113 
Accrued payroll-related expenses consist of the following as of the periods indicated:

(in thousands)March 31, 2025December 31, 2024
Accrued compensation and payroll taxes
$7,873 $10,708 
Accrued sales commissions4,193 4,784 
Accrued benefits2,459 2,144 
Total accrued payroll-related expenses$14,525 $17,636 

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

(in thousands)March 31, 2025December 31, 2024
Sales and VAT tax payables$3,254 $5,244 
Accrued interest3,486 1,743 
Royalty liabilities1,443 1,897 
Deferred revenue590 2,375 
Other7,974 8,743 
Total other accrued expenses$16,747 $20,002 
As of March 31, 2025 and December 31, 2024, total warranty reserve was approximately $3 million and $4 million, respectively, which was included in other accrued expenses on the Condensed Consolidated Balance Sheets.
As of March 31, 2025 and December 31, 2024, the Company has approximately $2 million in restricted cash held as collateral for the Company’s credit cards, which was included in cash, cash equivalents and restricted cash on the Condensed Consolidated Balance Sheets.
The Company evaluated its global distribution strategy to align its go-to-market strategy with in-market partner capabilities and market opportunity. The Company expects to transition sales in the China market to a distributor partner during the second quarter of 2025, and as a result, the Company intends to discontinue its direct sales presence in China. As of March 31, 2025, the Company has accrued approximately $3 million of severance expense associated with these actions, which was included in accrued payroll-related expenses on the Condensed Consolidated Balance Sheets.