Note 4. Balance Sheet Components

Inventories

During the nine months ended September 30, 2026, the Company received tariff refunds totaling $8.2 million from the U.S. Customs and Border Protection related to previously paid import duties, all of which were recorded as an increase to cash. Of the total amount received, $4.3 million related to tariffs recognized in cost of revenue. Because the Company's right to the refund was established and the refund was received during the second quarter, the amount was recognized as a reduction of cost of revenue during the nine months ended September 30, 2026. The Company had previously capitalized $3.6 million of tariffs as a component of inventory. Upon receipt of the refund, the Company recognized a corresponding $3.6 million reduction in the carrying value of inventory. The remaining amount, representing statutory interest on the refunded duties of $0.3 million, was recognized in Other expense (income), net in the accompanying condensed consolidated statements of operations during the nine months ended September 30, 2026.

Property and Equipment, net

Depreciation and amortization expense on property and equipment was $0.7 million and $1.1 million for the three months ended September 30, 2026 and 2025, respectively. Depreciation and amortization expense on property and equipment was $2.3 million and $3.3 million for the nine months ended September 30, 2026 and 2025, respectively.

Other Current Liabilities