v3.26.1
Certain Balance Sheet Accounts
 3 Months Ended
Mar. 31, 2026
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Certain Balance Sheet Accounts Certain Balance Sheet Accounts
Restricted Cash

The Company’s restricted cash includes cash held in escrow accounts related to litigation settlements. Under the terms of the Butala action settlement agreement (see Note 5), the Company deposited funds into a dedicated escrow account pending final court approval of the settlement and the completion of the claims administration process. The Company's restricted cash also includes cash collateral to secure its current credit card borrowings. Cash as reported on the unaudited condensed consolidated statements of cash flows includes the aggregate amounts of cash, cash equivalents, and restricted cash as shown on the unaudited condensed consolidated balance sheets and consists of the following:
March 31,
20262025
Reconciliation of cash, cash equivalents, and restricted cash reported in the consolidated balance sheets:
Cash and cash equivalents$35,459 $16,310 
Restricted cash:
Litigation settlement escrow5,250 — 
Cash collateral - credit card facility300 300 
Total cash, cash equivalents, and restricted cash$41,009 $16,610 

Allowance for Credit and Other Losses

The Company records its accounts receivable at sales value and maintains an allowance for its current estimate of expected credit losses from customers. Provisions for expected credit losses are estimated based on historical experience, assessment of specific risk, review of outstanding invoices, and forecasts about the future. The Company establishes specific reserves for customers in an adverse financial condition and adjusts for its expectations of changes in conditions that may impact the collectability of outstanding receivables.

Changes in the Company's allowance for credit and other losses were as follows:
Three Months Ended March 31,
20262025
Beginning balance$723 $653 
Changes in current-period provision(62)158 
Ending balance$661 $811 

Inventory

Details of inventory were as follows:
March 31, 2026December 31, 2025
Raw materials$919 $330 
Finished goods17,275 14,961 
Total inventory$18,194 $15,291 
Property and Equipment, net

Property and equipment consisted of the following:
March 31, 2026December 31, 2025
Tooling and manufacturing equipment$2,645 $2,249 
Computer equipment524 455 
Furniture and fixtures194 194 
Software47 46 
Leasehold improvements3 3 
Total property and equipment3,413 2,947 
Less: accumulated depreciation and amortization(2,693)(2,652)
Property and equipment, net$720 $295 

Depreciation and amortization expense on property and equipment was $41 and $33 for the three months ended March 31, 2026 and March 31, 2025, respectively. For the three months ended March 31, 2026 and March 31, 2025, the Company allocated $11 and $29, respectively, of depreciation and amortization expense related to tooling and manufacturing equipment within cost of revenue on the unaudited condensed consolidated statements of operations and comprehensive income (loss). The remaining depreciation and amortization expense related to property and equipment was recorded within general and administrative expenses.

Intangible Assets, net

The carrying amounts of intangible assets consisted of the following:
March 31, 2026
Gross carrying amountAccumulated amortizationNet carrying amount
Trademarks and patents$857 $(457)$400 
Internally developed software1,868 (520)1,348 
Total intangible assets$2,725 $(977)$1,748 

December 31, 2025
Gross carrying amountAccumulated amortizationNet carrying amount
Trademarks and patents$778 $(434)$344 
Internally developed software1,447 (400)1,047 
Total intangible assets$2,225 $(834)$1,391 

Amortization expense of intangible assets was $144 and $86 for the three months ended March 31, 2026 and 2025, respectively. For the three months ended March 31, 2026 and 2025, the Company recorded $120 and $65, respectively, of amortization expense related to internally developed software within cost of revenue on the unaudited condensed consolidated statements of operations and comprehensive income (loss). The remaining amortization expense related to trademarks and patents was recorded within general and administrative expenses.

As of March 31, 2026, the estimated future amortization expenses and reconciliation to total intangible assets consisted of the following:
YearAmount
Remaining nine months of 2026$425 
2027476 
2028228 
202938 
203026 
Thereafter54 
Total future amortization expenses1,247 
Intangible assets not yet subject to amortization501 
Total intangible assets$1,748 

Accrued and Other Expenses

Accrued and other expenses consisted of the following:
March 31, 2026December 31, 2025
Accrued payroll$4,246 $4,206 
Accrued sales discounts1,391 3,881 
Accrued sales returns1,321 1,415 
Accrued legal settlements6,176 5,998 
Other4,001 3,927 
Total accrued and other expenses$17,135 $19,427 

Changes in accrued warranty were as follows:
Three Months Ended March 31,
20262025
Accrued warranty, beginning of period$357 $291 
Settlements of warranty claims during the period(172)(187)
Provision for warranties issued during the period92 124 
Changes in provision for pre-existing warranties42 77 
Accrued warranty, end of period$319 $305