Prepaid Expenses and Other Current Assets

Deferred inventory costs for members are amortized ratably over the membership subscription period. The amortization costs for the three months ended June 30, 2025 and 2024 were $7.7 million and $7.4 million, respectively and for the six months ended June 30, 2025 and 2024 were $15.1 million and $16.2 million, respectively. These amortization costs are included in cost of revenue in the unaudited consolidated statements of operations and comprehensive loss.

Inventory

During the three and six months ended June 30, 2024, the Company incurred excess and obsolete inventory charges related to a strategic decision to shift away from providing kits with tablets and wearable sensors of $1.3 million and $1.8 million, respectively. During the three and six months ended June 30, 2025, there were no excess and obsolete inventory charges related to this transition. As of June 30, 2025 and December 31, 2024 inventory primarily consisted of the Company’s Enso device that have not been shipped to members.

Property, Equipment and Software, Net

During the three months ended June 30, 2025 and 2024, depreciation expense was $0.3 million and $0.5 million, respectively and during the six months ended June 30, 2025 and 2024, depreciation expense was $0.7 million and $1.0 million, respectively. During the three months ended June 30, 2025 and 2024, the Company capitalized internal-use software costs of $1.6 million and $0.5 million, respectively, and incurred amortization expense of $0.8 million and $1.0 million, respectively. During the six months ended June 30, 2025 and 2024 the Company capitalized internal-use software costs of $2.3 million and $1.3 million, respectively, and incurred amortization expense of $1.6 million and $2.0 million, respectively.

Accounts Payable and Accrued Liabilities