v3.25.2
Balance Sheet Components
 6 Months Ended
Jun. 30, 2025
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Balance Sheet Components
7. Balance Sheet Components
Accounts receivable, net
Accounts receivable, net consists of the following (in thousands):
As of June 30,As of December 31,
20252024
Accounts receivable$58,948 $58,391 
Allowance for credit losses(94)(394)
Total accounts receivable, net$58,854 $57,997 
Accounts receivable, net is presented net of the allowance for credit losses, which represents management’s estimate of expected credit losses based on historical trends, current economic conditions, and other relevant factors as of June 30, 2025 and December 31, 2024, respectively.
Inventory
Inventory consists of the following (in thousands):
As of June 30,As of December 31,
20252024
Raw materials$50 $24 
Finished goods9,623 8,033 
Total inventory$9,673 $8,057 
Prepaid Expenses and Other Current Assets
Prepaid expenses and other current assets consist of the following (in thousands):
As of June 30,As of December 31,
20252024
Prepaid expenses$14,932 $11,074 
Other receivables3,809 3,525 
Total prepaid expenses and other current assets$18,741 $14,599 
Prepaid expenses primarily consist of certain cloud platform costs, customer service program costs, prepaid advertising, and prepaid inventory. Other receivables primarily consist of refunds owed to the Company and other amounts which the Company is expected to receive in less than twelve months.
Property and Equipment, net
Property and equipment, net consists of the following (in thousands):
As of June 30,As of December 31,
20252024
Computer equipment$297 $297 
Leasehold improvements86 101 
Production manufacturing equipment2,038 2,026 
Construction in progress1,802 362 
Furniture and fixtures29 29 
Total property and equipment, gross4,252 2,815 
Less: accumulated depreciation(1,210)(1,036)
Total property and equipment, net$3,042 $1,779 
Construction in progress relates to certain costs incurred with production manufacturing equipment.
For the three and six months ended June 30, 2025, depreciation expense was $95 thousand and $190 thousand, respectively, and for the three and six months ended June 30, 2024, depreciation expense was $49 thousand and $95 thousand, respectively.
There was no impairment of property and equipment or long-lived assets recognized during the three and six months ended June 30, 2025 or 2024.
Prepaid Expenses and Other Assets, noncurrent
Prepaid expenses and other assets, noncurrent consist of the following (in thousands):
As of June 30,As of December 31,
20252024
Prepaid expenses, noncurrent$3,163 $1,849 
Convertible Note Investment25,387 — 
Data Revenue Partner Warrant
10,863 10,863 
Related Party Investment5,882 — 
Related Party Warrant3,899 3,899 
Related Party SAFE— 5,000 
Total prepaid expenses and other assets, noncurrent$49,194 $21,611 
Prepaid expenses, noncurrent primarily consist of cloud platform costs as of June 30, 2025 and December 31, 2024. As of June 30, 2025, other assets consist of investments, including a warrant to purchase shares of preferred stock of a data partner (the “Data Revenue Partner Warrant”), a warrant to purchase shares of common stock of a Related Party (the “Related Party Warrant”), the Related Party Investment, and the Convertible Note Investment. As of December 31, 2024, investments relate to the Data Revenue Partner Warrant, the Related Party Warrant, and the Related Party SAFE. Refer to Note 5, "Fair Value Measurements" and Note 14, "Related-Party Transactions" for additional information.
Leases
The Company leases office space under a non-cancelable operating lease with a remaining lease term of 1.4 years, which includes the option to extend the lease.
The Company did not have any finance leases as of June 30, 2025 or December 31, 2024.
The components of lease expense are as follows (in thousands):
Three Months Ended June 30,Six Months Ended June 30,
2025202420252024
Operating lease cost (1)
$131 $114 $249 $224 
(1) Amounts include short-term leases, which are immaterial.
Supplemental balance sheet information related to leases is as follows (in thousands, except lease term):
As of June 30,As of December 31,
20252024
Operating lease right-of-use asset$512 $683 
Operating lease liability, current (included in accrued expenses and other current liabilities)379 364 
Operating lease liability, noncurrent (included in other liabilities, noncurrent)165 359 
Weighted-average remaining term for operating lease (in years)1.41.9
The weighted-average discount rate used to measure the present value of the operating lease liabilities was 5.0% for each period presented.
Maturities of the Company’s operating lease liability, which does not include short-term leases, as of June 30, 2025 were as follows (in thousands):
Operating leases
Remainder of 2025$195 
2026367 
Total future minimum lease payments562 
Less imputed interest(18)
Total operating lease liability$544 
Goodwill and Intangible Assets, net
Intangible assets, net consists of the following (in thousands):
As of June 30, 2025
GrossAccumulated AmortizationNet
Trade name$23,380 $(8,269)$15,111 
Technology25,985 (16,157)9,828 
Customer relationships15,290 (6,612)8,678 
Internally developed software
11,208 (2,305)8,903 
Total$75,863 $(33,343)$42,520 
As of December 31, 2024
GrossAccumulated AmortizationNet
Trade name$23,380 $(7,100)$16,280 
Technology22,430 (13,677)8,753 
Customer relationships15,290 (5,668)9,622 
Internally developed software
7,076 (1,157)5,919 
Total$68,176 $(27,602)$40,574 
For the three and six months ended June 30, 2025, the Company capitalized $2.4 million and $4.1 million, respectively, in internally developed software. For the three and six months ended June 30, 2024, the Company capitalized $1.5 million and $2.6 million, respectively, in internally developed software.
For the three and six months ended June 30, 2025, amortization expense was $2.9 million and $5.7 million, respectively. For the three and six months ended June 30, 2024, amortization expense was $2.3 million and $4.6 million, respectively.
During the three and six months ended June 30, 2025 and 2024, there was no impairment of intangible assets recorded.
As of June 30, 2025, the estimated remaining amortization expense for intangible assets by fiscal year is as follows (in thousands):
Amount
Remainder of 2025$6,165 
202611,965 
20277,250 
20285,319 
20294,935 
Thereafter4,898 
Total future amortization expense40,532 
Internally developed software not yet in service1,988 
Total$42,520 
The weighted-average remaining useful lives of the Company’s acquired intangible assets, excluding internally developed software projects that were not yet in service, are as follows:
Weighted-Average Remaining Useful Life
As of June 30,As of December 31,
20252024
Trade name6.5 years7.0 years
Technology2.5 years1.9 years
Customer relationships4.6 years5.1 years
Internally developed software2.5 years2.6 years
As of June 30, 2025 and December 31, 2024, goodwill was $134.6 million and $133.7 million, respectively. Goodwill increased $0.9 million in connection with the Fantix, Inc. acquisition. Refer to Note 6, "Business Combinations" for additional information. No goodwill impairment was recorded during the three and six months ended June 30, 2025 or 2024.
Accrued Expenses and Other Current Liabilities
Accrued expenses and other current liabilities consist of the following (in thousands):
As of June 30,As of December 31,
20252024
Accrued vendor expenses$15,524 $13,856 
Accrued compensation3,652 3,834 
Customer related promotions and discounts4,008 9,761 
Sales return reserves1,709 2,817 
Other current liabilities2,259 1,747 
Total accrued expenses and other current liabilities$27,152 $32,015 
As of June 30, 2025, other current liabilities primarily relate to the Company’s deferred purchase price liability related to the Fantix, Inc. acquisition and sales taxes payable. As of December 31, 2024, other current liabilities primarily relate to the Company’s operating lease liability and sales taxes payable.