14. Severance and strategic transformation costs

The Company has executed a series of individual actions, referred to as strategic transformation actions. Strategic transformation costs include one-time employee termination benefits, strategic transformation consulting expenses, as well as other incremental costs resulting from these actions. Employee termination benefits are recorded in accordance with standard Company policy. Charges are recorded when such actions are approved, communicated, and/or implemented. Amounts remaining to be paid for any strategic transformation costs are $3,597 and included in accrued expenses and operating lease liability on the condensed consolidated balance sheet as of June 30, 2026.

In the three months ended June 30, 2026 and 2025, the Company recorded charges of $(643) and $2,541, respectively, in connection with individual strategic transformation actions. For the three months ended June 30, 2026 and 2025, these charges consist of $8 and $601 recorded as cost of sales, $57 and $99 recorded as research and development expense, $(15) and $1,022 as sales and marketing expense, and $(693) and $819 as general and administrative expenses, respectively. In the six months ended June 30, 2026 and 2025, the Company recorded charges of $3,834 and $6,006, respectively, in connection with individual strategic transformation actions. For the six months ended June 30, 2026 and 2025, these charges consist of $1,179 and $887 recorded as cost of sales, $1,478 and $1,923 recorded as research and development expenses, $881 and $1,325 as sales and marketing expense, and $296 and $1,871 as general and administrative expenses, respectively.