On May 15, 2025, the Board of Directors of the Company approved a comprehensive enterprise initiative designed to streamline the Company’s organizational structure and rebalance its cost base to achieve profitability and cash flow generation. As part of this initiative, the Company plans to identify opportunities to deliver cost savings and operational efficiencies. These savings are expected to be achieved through a multi-step strategic optimization plan (“Project Gravity”).

As a result of these initiatives, the Company recorded $3.2 million of expenses, primarily related to consulting fees and severance and other personnel costs within restructuring and other costs in the accompanying condensed consolidated statement of operations and comprehensive income (loss) for the three months ended March 31, 2026. Project Gravity, in its entirety, is expected to be substantially completed by the end of fiscal year 2026, with the majority of the total charges being incurred in fiscal year 2025. All restructuring charges recognized to date have been substantially settled in cash and the Company does not currently anticipate significant non-cash charges associated with Project Gravity.

The following table presents a roll-forward of restructuring-related liabilities recorded within accrued expenses in the accompanying consolidated balance sheets (in thousands):


	Consulting Fees		Severance and Other Personnel Costs		Supplier Settlement Costs		Total
Balance at December 31, 2025	$	2,185	$	3,624	$	629	$	6,438
Charges incurred	2,748		415		—		3,163
Cash payments	(4,933)		(2,494)		—		(7,427)
Balance at March 31, 2026	$	—	$	1,545	$	629	$	2,174