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ACCRUED AND OTHER CURRENT LIABILITIES
 6 Months Ended
Jun. 30, 2026
Payables and Accruals [Abstract]  
ACCRUED AND OTHER CURRENT LIABILITIES ACCRUED AND OTHER CURRENT LIABILITIES
Accrued and other current liabilities consisted of the following:

(in thousands)June 30, 2026December 31, 2025
Accrued payroll4,935 4,578 
Supplier allowance— 1,046 
Sales returns and allowances457 457 
Financed insurance liability490 1,303 
Accrued interest258 38 
Customer deposits524 — 
Other363 641 
Total accrued and other current liabilities$7,027 $8,063 
Warranty Liability
We generally provide a manufacturer’s warranty on all new vehicles we sell. We record a warranty liability for the products sold by us, which includes our best estimate of the projected costs to repair or replace items under warranties and recalls if identified. The amount of warranty liability accrued reflects management’s best estimate of the nature, frequency, and costs of future claims. Historically, the cost of fulfilling the warranty obligations has principally involved replacement parts, towing and transportation costs, labor and sometimes travel for any field retrofit campaigns. Our estimates are based on historical experience, the extent of pre-production testing, the number of units involved, and the extent of features/components included in product models. We record adjustments to our estimates when those differences are known.
Although we believe the estimates and judgments discussed herein are reasonable, actual results could differ, and we may be exposed to increases or decreases in our warranty liability accrual that could be material. The increase in warranty costs incurred and accrual for warranty during the three and six months ended June 30, 2026, was primarily attributable to costs related to an ongoing retrofit campaign for certain Motiv trucks sold in Canada. Costs incurred during the period were higher than our original estimates, and we increased our reserves required to complete the retrofit campaign.
Accrued warranty activity consisted of the following:
Three Months Ended June 30,Six Months Ended June 30,
(in thousands)2026202520262025
Warranty liability, beginning of period$5,554 $2,613 $4,975 $2,737 
Warranty costs incurred(2,011)(691)(3,232)(1,066)
Provision for warranty1,334 527 3,134 778 
Warranty liability, end of period4,877 2,449 4,877 2,449 
Less: current portion2,768 1,466 2,768 1,466 
Long-term warranty liability, end of period$2,109 $983 $2,109 $983