v3.26.1
Commitments and Contingencies
6 Months Ended
Jun. 30, 2026
Commitments and Contingencies Disclosure [Abstract]  
Commitments and Contingencies

Note 10. Commitments and Contingencies

Purchase Obligation

The Company is a party to various supply agreements for the manufacture and supply of certain components. The supply agreements commit the Company to a minimum purchase obligation of approximately $9,320 over the next 18 months. The Company expects to meet these requirements.

Contingent Payments

In connection with negotiated reduced acquisition-related cost payments, refer to Note 2, Summary of Significant Accounting Policies, the Company agreed to pay certain acquisition-related vendors $1,000 in the event of a change in control.

International Emergency Economic Powers Act Tariff Refund

In February 2026, the U.S. Supreme Court ruled to invalidate the U.S. administration’s tariff program implemented during 2025 under the International Emergency Economic Powers Act (“IEEPA”), concluding that IEEPA did not authorize the broad import duties previously imposed. Subsequent to the U.S. Supreme Court ruling, the U.S. Court of International Trade issued an order directing U.S. Customs and Border Protection (“CBP”) to establish an administrative process to issue refunds of any IEEPA tariffs imposed without appropriate authority. In April 2026, the CBP launched an online portal referred to as the Consolidated Administration and Processing of Entries (“CAPE”) that can be used to submit IEEPA tariff refund requests. All requests will be reviewed by the CBP to determine validity prior to the issuance of refunds.

Any tariffs paid are capitalized in inventory and recognized in cost of goods sold as those products subject to tariffs are sold. During the three and six months ended June 30, 2026, the Company recorded $1,150 as a reduction of cost of goods sold in the condensed statement of operations. During the three months ended June 30, 2026, the Company received $241 in refunds and the remaining $909 was recorded as a receivable in other assets on the condensed balance sheet at June 30, 2026. A majority of the receivable was received subsequent to June 30, 2026. Refer to Note 16, Subsequent Events.

Legal Matters

The medical device market in which the Company participates is largely technology driven. As a result, intellectual property rights, particularly patents and trade secrets, play a significant role in product development and differentiation. The Company makes provisions for liabilities when it is both probable that a liability has been incurred and the amount of the loss can be reasonably estimated.

From time to time, we may become involved in various legal proceedings relating to matters incidental to the terminated Merger Agreement and in the ordinary course of our business, including intellectual property, commercial, product liability, employment, class action, whistleblower and other litigation and claims, and governmental and other regulatory investigations and proceedings. There were no provisions for legal liabilities at June 30, 2026 and 2025.