XML 27 R16.htm IDEA: XBRL DOCUMENT
v3.25.3

Other Assets | 9 Months Ended
--- | ---
Sep. 30, 2025
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] |
Other Assets | Other Assets Loan to Safe Streets On January 30, 2025, we entered into a senior secured loan agreement with Safe Streets, under which a term loan was provided to them in the original principal amount of $21.5 million, which loan is collateralized by the assets of Safe Streets. Quarterly principal payments begin in the second quarter of 2027. Interest on the outstanding principal accrues at a rate per annum equal to the overnight financing rate published by the Federal Reserve Bank of New York for a period of three months, plus 3.0%. For the first two years of the loan, monthly interest payments can be payable in kind at the election of the borrower. The maturity date of the loan is January 30, 2030. As of September 30, 2025, $21.5 million of principal was outstanding from Safe Streets under the loan agreement. Loan to a Distribution Partner In December 2022, we amended a subordinated credit agreement with the affiliated entity of one of our distribution partners, or the Affiliate. The amended subordinated credit agreement with the Affiliate matures on June 18, 2027, and interest on the outstanding principal balance accrues at a rate of 12.0% per annum and is payable in kind. In March 2024, the Affiliate was in default on a loan arrangement with one of its third party secured lenders. Based on this information from the Affiliate, during the three months ended March 31, 2024, we recorded a credit loss expense of $4.0 million in general and administrative expense and recorded a reduction to our interest income of $0.5 million related to the reversal of payable in kind interest associated with the subordinated credit agreement. We placed this loan in nonaccrual status and recorded a full allowance for credit losses for this note receivable as of March 31, 2024. During the three months ended June 30, 2024, we wrote off the entire $4.0 million outstanding note receivable balance that originated in 2017 and reversed the previously recorded allowance for credit losses. For the three and nine months ended September 30, 2025, we recognized $0.4 million and $1.3 million of revenue from the distribution partner associated with this loan, respectively, as compared to $0.7 million and $2.0 million for the same periods in the prior year. Loan to a Service Provider Partner In July 2020, we entered into a loan agreement with a service provider partner, under which we agreed to loan the service provider partner up to $2.5 million, collateralized by the assets of the service provider partner. Interest on the outstanding principal accrues at a rate per annum equal to 9.0% and monthly interest and principal payments began in April 2021. The maturity date of the loan was July 24, 2025. In July 2025, we learned that this service provider partner may have a lien placed on its property that may have a priority over our security interest. Based on the information provided by the service provider partner, during the three months ended June 30, 2025, we recorded a credit loss expense of $0.7 million in general and administrative expense and we placed this loan in nonaccrual status as of June 30, 2025. As of September 30, 2025 and December 31, 2024, $0.9 million and $1.0 million of principal was outstanding from the service provider partner under the loan agreement, respectively. For the three and nine months ended September 30, 2025 and 2024, we recognized less than $0.1 million and $0.1 million of revenue from the service provider partner associated with this loan, respectively. Allowance for Credit Losses - Notes Receivable We identified one portfolio segment, loan receivables, for our notes receivable. There were no changes to our policies or practices involving the issuance of notes receivable, customer acquisitions or any other factors that influenced our estimate of expected credit losses for notes receivable during the three and nine months ended September 30, 2025. We do not accrue interest on notes receivable that are considered impaired or are 90 days or greater past due based on their contractual payment terms. Notes receivable that are 90 days or greater past due are placed on nonaccrual status. Notes receivable may be placed on nonaccrual status earlier if, in management’s opinion, a timely collection of the full principal and interest becomes uncertain. After a note receivable has been placed on nonaccrual status, interest will be recognized when cash is received. A note receivable may be returned to accrual status after all of the customer’s delinquent balances of principal and interest have been settled, and collection of all remaining contractual amounts due is reasonably assured. We have elected not to measure an allowance for credit losses for accrued interest receivables. We write-off any accrued interest on notes receivable that are considered impaired or are 90 days or greater past due based on their contractual payment terms by reversing interest income. The accrued interest receivable as of September 30, 2025 and December 31, 2024 was $0.8 million and $0.2 million, respectively, and is reflected in other current assets and other assets within our condensed consolidated balance sheets and excluded from the amortized cost basis of the notes receivable. During the nine months ended September 30, 2024, we recorded a reduction to our interest income of $0.5 million related to the reversal of payable in kind interest associated with a subordinated credit agreement with the Affiliate. We did not write off any accrued interest receivable during the three and nine months ended September 30, 2025 or the three months ended September 30, 2024. There were no purchases or sales of financial assets during the three and nine months ended September 30, 2025 and 2024. During the three and nine months ended September 30, 2024, we wrote off $4.0 million related to a note receivable that originated in 2017 with the Affiliate and reversed the previously recorded allowance for credit losses. The changes in our allowance for credit losses for notes receivable are as follows (in thousands):
| Three Months Ended September 30, 2025 |  |  |  | Three Months Ended September 30, 2024 |  |  |  | Nine Months Ended September 30, 2025 |  |  |  | Nine Months Ended September 30, 2024 |  |
Beginning of period balance | $ | (750) |  |  |  |  | $ | (1) |  |  |  |  | $ | (1) |  |  |  |  | $ | (5) |  |  |
(Provision for) / recovery of expected credit losses | 1 |  |  |  |  | — |  |  |  |  | (748) |  |  |  |  | (3,996) |  |  |
Write-offs | — |  |  |  |  | — |  |  |  |  | — |  |  |  |  | 4,000 |  |  |
End of period balance | $ | (749) |  |  |  |  | $ | (1) |  |  |  |  | $ | (749) |  |  |  |  | $ | (1) |  |  |
We manage our notes receivables using delinquency as a key credit quality indicator. The following tables reflect the current and delinquent notes receivable by class of financing receivables and by year of origination (in thousands):
| September 30, 2025
Loan Receivables: | 2025 |  | 2024 |  | 2023 |  | 2022 |  | 2021 |  | Prior |  | Total
Current | $ | 24,305 |  |  | $ | 500 |  |  | $ | 109 |  |  | $ | 1,500 |  |  | $ | — |  |  | $ | — |  |  | $ | 26,414 |
30-59 days past due | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
60-89 days past due | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 944 |  |  | 944 |
90-119 days past due | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
120+ days past due | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Total | $ | 24,305 |  |  | $ | 500 |  |  | $ | 109 |  |  | $ | 1,500 |  |  | $ | — |  |  | $ | 944 |  |  | $ | 27,358 |
| December 31, 2024
Loan Receivables: | 2024 |  | 2023 |  | 2022 |  | 2021 |  | 2020 |  | Prior |  | Total
Current | $ | 500 |  |  | $ | 146 |  |  | $ | 1,500 |  |  | $ | — |  |  | $ | 993 |  |  | $ | — |  |  | $ | 3,139 |
30-59 days past due | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
60-89 days past due | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
90-119 days past due | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
120+ days past due | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Total | $ | 500 |  |  | $ | 146 |  |  | $ | 1,500 |  |  | $ | — |  |  | $ | 993 |  |  | $ | — |  |  | $ | 3,139 |
There was one note receivable placed on nonaccrual status as of September 30, 2025 and no notes receivable placed on nonaccrual status as of December 31, 2024. During the three and nine months ended September 30, 2025 and 2024, there was no interest income recognized related to notes receivable that were in nonaccrual status. As of September 30, 2025, there was $0.2 million of notes receivable placed in nonaccrual status for which there was not a related allowance for credit losses. As of December 31, 2024, there were no notes receivable placed in nonaccrual status for which there was not a related allowance for credit losses. As of September 30, 2025 and December 31, 2024, there were no notes receivable that were 90 days or greater past due for which we continued to accrue interest income. Prepaid Expenses As of September 30, 2025 and December 31, 2024, $24.5 million and $16.1 million of prepaid expenses were included in other current assets, respectively, primarily related to software licenses, long lead-time parts related to our inventory and insurance.

X
- References No definition available. + Details
Name: | us-gaap_DeferredCostsCapitalizedPrepaidAndOtherAssetsDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for other assets. This disclosure includes other current assets and other noncurrent assets. + References No definition available. + Details
Name: | us-gaap_OtherAssetsDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration