The cost saving initiatives identified and executed upon during the six months ended June 30, 2026 were designed to reduce operational expenditures over the long-term. The key cost saving initiatives and operational planning activities undertaken during the six months ended June 30, 2026 were as follows:

•retention payments to key personnel to support the sustainment of operations and focus on cost saving and operational improvements, resulting in recognition of restructuring charges of $0.5 million during the period; and

•reduction in force (“RIF”) of management and non-management personnel in an effort to align headcount with the operational needs of the business resulting in a moderate decline in related expenses in the short term, with the significance of the savings anticipated to be recognized in future periods, resulting in a restructuring charge of $0.3 million.

•early termination of the Company’s Salt Lake City distribution center lease to reduce fixed costs in the short term and in future periods, which resulted in a contract termination benefit of $0.2 million upon recognition of the lease modification.

•closure of Oru’s manufacturing facility to reduce fixed costs in the short term and in future periods, as well as eliminate the Company’s only manufacturing operation, resulting in recognition of restructuring charges of $0.4 million during the period related to severance costs and impairment charges of $0.8 million, or an aggregate charge to expense of $1.2 million. Refer to Note 4, Inventory for additional information on a related inventory write-down recorded during the period.

In 2025, management, along with our Board of Directors, engaged strategic consulting firms to assist with improving our financial results. This operational improvement involved the engagement of restructuring, legal and investment banking consultants to perform financial planning, forecasting and project management activities. Certain of these strategic consulting firms assisted and continue to assist in developing operational plans for the near- and long-term, as well as identifying cost saving initiatives to reduce our operational expenses and aid in the development of enhanced internal reporting to deliver timely insight to management.

The cost saving initiatives identified and executed upon during the six months ended June 30, 2025 were designed to reduce operational expenditures over the long-term. The key cost saving initiatives and operational planning activities undertaken during the six months ended June 30, 2025 were as follows:

•retention payments to key personnel to support the sustainment of operations and focus on cost saving and operational improvements, resulting in a restructuring charge of $5.7 million;

•RIF of management and non-management personnel in an effort to align headcount with the operational needs of the business resulting in a moderate decline in related expenses in the short term, with the significance of the savings anticipated to be recognized in future periods, resulting in a restructuring charge of $0.9 million; and

•termination of an underperforming licensing agreement in an effort to redeploy the allocated funds for operational purposes, resulting in a charge to contract termination of $2.5 million; and

•settlement of a termination fee with a former advertising services vendor, with a previously accrued balance of $5.4 million that was settled for $4.0 million, a $1.4 million benefit to the Company.

•closure of two distribution centers to reduce fixed costs in the short term and in future periods, as well as eliminate unnecessary capacity, resulting in restructuring charges of $0.5 million, impairment charges of $0.5 million, and contraction termination of $0.2 million, or an aggregate charge to expense of $1.2 million.


	Three Months Ended June 30,				Six Months Ended June 30,
	2026		2025		2026		2025
Restructuring charges(1)	$	1,248	$	9,023	$	1,553	$	14,231
Impairment charges	825		—		825		471
Contract termination charges (benefit)	(178)		1,228		(178)		1,388
Total restructuring, contract termination and impairment charges	$	1,895	$	10,251	$	2,200	$	16,090

The Company expects to continue to evaluate and identify additional cost-saving initiatives that it may execute in the near term, with potential expenses to be incurred at the onset of said initiative that will be reflected within restructuring, contract termination and/or impairment charges. As of June 30, 2026, the Company is unable to estimate the potential upfront costs of these future cost saving initiatives, due to their preliminary nature.