XML 19 R9.htm IDEA: XBRL DOCUMENT

SUPPLEMENTAL BALANCE SHEET DISCLOSURES

6 Months Ended

Jun. 30, 2023

Supplemental Balance Sheet Disclosures

3. SUPPLEMENTAL BALANCE SHEET DISCLOSURES

Components of selected captions in the unaudited condensed consolidated balance sheets consisted of the following:

Accounts receivable, net

Accounts receivable from product sales are net of allowance for credit losses of less than $1 thousand as of both June 30, 2023 and December 31, 2022.

Inventory, net (in thousands)


	June 30,		December 31,
	2023		2022
Raw materials	$	331	$	344
Work-in-process		199		284
Finished goods		105		39
Inventory, gross		635		667
Inventory reserve		(72)		(78)
Inventory, net	$	563	$	589

During the six months ended June 30, 2023, $14 thousand of inventory was written off to the inventory reserve.

Prepaid expenses and other current assets (in thousands)


	June 30,		December 31,
	2023		2022
Prepaid expenses	$	588	$	817
Inventory related		330		399
Total prepaid expenses and other current assets	$	918	$	1,216

Accrued and other current liabilities (in thousands)


	June 30,		December 31,
	2023		2022
Insurance payable	$	151	$	592
Employees benefits		439		509
Professional services		130		119
Other		136		60
Total accrued and other current liabilities	$	856	$	1,280

Deferred revenue

Exclusive Distribution Agreement

Pursuant to an Exclusive Distribution Agreement with Health Tech Connex Inc. (“HTC”) (“Exclusivity Agreement”) entered into on March 3, 2023, subject to certain terms and conditions, the Company granted to HTC the exclusive right to provide PoNS Therapy in the Fraser Valley and Vancouver metro regions of British Columbia. HTC will purchase the PoNS devices for use in these regions exclusively from the Company and on terms no less favorable than the then-current standard terms and conditions. This Exclusivity Agreement replaced the previous Clinical Research and Co-Promotion Agreement (“Co-Promotion Agreement”) between the parties entered into in October 2019 that included a similar exclusive right provision. The exclusive right under the Exclusivity Agreement was granted for a value of CAD$273 thousand, which is represented by the unamortized up-front payment under the former Co-Promotion Agreement. The initial term of the Exclusivity Agreement expires on December 31, 2027, and is renewable by HTC for one additional five-year term upon sixty days’ written notice to the Company.

Deferred revenue as of both June 30, 2023 and December 31, 2022 is comprised of the remaining unamortized amount under these agreements. Revenue recognized is included in other revenue in the Unaudited Condensed Consolidated Statements of Operations and Comprehensive Loss.