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Summary of Significant Accounting Policies | 3 Months Ended
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Mar. 31, 2026
Accounting Policies [Abstract] |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Basis of Presentation and Principles of Consolidation The accompanying condensed consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries and have been prepared in accordance with generally accepted accounting principles in the U.S. ("U.S. GAAP") and the accounting disclosure rules and regulations of the SEC regarding interim financial reporting. Certain information and note disclosures normally included in the annual financial statements prepared in accordance with U.S. GAAP have been condensed or omitted pursuant to such rules and regulations. Therefore, these condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes included in the 2025 Annual Report on Form 10-K. All intercompany balances and transactions are eliminated upon consolidation. The condensed consolidated balance sheet as of December 31, 2025, included herein, was derived from the audited consolidated financial statements as of that date but does not include all disclosures, including certain notes, required by U.S. GAAP for annual reporting. In the opinion of management, the accompanying condensed consolidated financial statements reflect all normal and recurring adjustments necessary to present fairly the financial position, results of operations, and cash flows for the interim periods. The results for the three months ended March 31, 2026 are not necessarily indicative of the results to be expected for any subsequent quarter, the year ending December 31, 2026, or any other period. Use of Estimates The Company makes estimates and assumptions about future events that affect the amounts reported in its condensed consolidated financial statements and accompanying notes. Future events and their effects cannot be determined with certainty. On an ongoing basis, management evaluates these estimates and assumptions. The Company bases these estimates on historical and anticipated results and trends and on various other assumptions that the Company believes are reasonable under the circumstances, including assumptions about future events. Changes in estimates are recorded in the period in which they become known. Actual results could differ from those estimates, and any such differences may be material to the Company’s condensed consolidated financial statements. The Company revised its estimated liabilities for loss contingencies and recognized an insurance recovery asset during the three months ended March 31, 2026, resulting in the following effects on captions in the condensed consolidated statements of comprehensive income (in thousands, except per-share amounts):
| Three months ended March 31, 2026 |  |
Loss from operations | $ | 2,750 |  |  |
Net loss and comprehensive loss | $ | 2,750 |  |  |
Net loss per common share attributable to Class A and B common stockholders, basic and diluted | $ | 0.01 |  |  |
See Note 12 "Commitments and Contingencies" for additional information on the losses and loss recovery related to these estimated liabilities and insurance recovery asset, respectively. There have been no other material changes to the Company’s use of estimates as described in the consolidated financial statements for the year ended December 31, 2025. Concentration of Credit Risk Financial instruments that potentially subject the Company to concentration of credit risk consist principally of cash and cash equivalents and accounts receivable. As of March 31, 2026, substantially all of the Company’s cash and cash equivalents were invested in money market accounts with one financial institution. The Company also maintains balances in various operating accounts above federally insured limits. The Company has not experienced any significant losses on such accounts and does not believe it is exposed to any significant credit risk on its cash and cash equivalents. As of March 31, 2026 and December 31, 2025, one customer and no customers, respectively, accounted for more than 10% of the Company’s accounts receivable. For the three months ended March 31, 2026 and 2025, one customer and no customers, respectively, accounted for more than 10% of the Company’s total revenue. Segment Information The Company has determined that it operates in one reportable segment, which includes all activities related to the development, manufacture, and sale of the Company's products, software, and other services. The Company’s chief operating decision maker ("CODM"), its Chief Executive Officer, regularly reviews the Company's consolidated net loss, which is reported as net loss and comprehensive loss on the condensed consolidated statements of operations and comprehensive loss, for purposes of evaluating the Company's financial performance, including reviewing budget versus actual results, and determining changes in the Company's allocation of resources across the Company's strategic initiatives. The Company's measure of segment assets is total assets, as reported on the condensed consolidated balance sheets, and substantially all of the Company’s long-lived assets are located in the United States. In addition to the operating expenses presented on the condensed consolidated statements of operations and comprehensive loss, the CODM also reviews certain significant segment expenses. The following table summarizes the Company's segment revenue and significant segment expenses included in consolidated net loss (in thousands):
| Three months ended March 31, |  |
| 2026 |  | 2025 |  |  |  |
Revenue | $ | 26,530 |  |  | $ | 21,225 |  |  |  |  |
Less: |  |  |  |  |  |  |
Cost of revenue (excluding write-downs of inventories and vendor advances) | 8,245 |  |  | 7,793 |  |  |  |  |
Write-downs of inventories and vendor advances | — |  |  | 52 |  |  |  |  |
Payroll operating expenses | 15,302 |  |  | 14,509 |  |  |  |  |
Stock-based compensation operating expenses | 5,412 |  |  | 6,284 |  |  |  |  |
Non-payroll operating expenses | 11,059 |  |  | 10,351 |  |  |  |  |
Other | 385 |  |  | 704 |  |  |  |  |
Other segment items | (1,196) |  |  | (4,501) |  |  |  |  |
Net loss | $ | (12,677) |  |  | $ | (13,967) |  |  |  |  |
Other segment items include interest income, interest expense, the change in fair value of warrant liabilities, other income (expense), net, and the provision for income taxes. Because the Company operates in one reportable segment, other required segment disclosures are included on the Company's condensed consolidated financial statements. Interest income, interest expense, and the provision for income taxes are included on the condensed consolidated statements of operations and comprehensive loss. Depreciation, amortization, and impairments; write-down of inventories; and purchases of property, equipment, and intangible assets, including capitalized software, are included on the condensed consolidated statements of cash flows. Allowance for Credit Losses The following table summarizes activity in the Company's allowance for credit losses (in thousands):
| Three months ended March 31, |  |
| 2026 |  | 2025 |  |  |  |
Balance, beginning of period | $ | 1,389 |  |  | $ | 2,583 |  |  |  |  |
Provision for expected credit losses | 124 |  |  | 247 |  |  |  |  |
Write-offs | (333) |  |  | (114) |  |  |  |  |
Balance, end of period | $ | 1,180 |  |  | $ | 2,716 |  |  |  |  |
Operating Expenses – Other The Company classifies certain operating expenses that are not representative of its ongoing operations as other on the condensed consolidated statements of operations and comprehensive loss. These include costs related to the Company’s reductions in force, litigation costs, loss contingencies related to ongoing litigation, and legal settlements. The following table summarizes the types of expenses classified as other in the Company’s condensed consolidated statements of operations and comprehensive loss (in thousands):
| Three months ended March 31, |  |
| 2026 |  | 2025 |  |  |  |
Employment-related expenses | $ | 287 |  |  | $ | 32 |  |  |  |  |
Legal-related expenses | 98 |  |  | 672 |  |  |  |  |
Total other | $ | 385 |  |  | $ | 704 |  |  |  |  |
Recent Accounting Pronouncements Issued but Not Yet Adopted In November 2024, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2024-03, Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses, which introduced new guidance on disclosures of specified information about certain costs and expenses included within expenses presented on the face or the income statements, such as purchases of inventory and employee compensation. This guidance is effective for the Company for annual reporting periods beginning January 1, 2027 and interim reporting periods beginning January 1, 2028. The Company is currently evaluating the impact that the adoption of this pronouncement will have on the Company's consolidated financial statements and disclosures. In September 2025, the FASB issued ASU 2025-06, Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software, which introduced new guidance to modernize the accounting for internal-use software development costs by removing references to prescriptive and sequential software development stages and providing additional considerations when evaluating the probable-to-complete recognition threshold. This guidance is effective for the Company for both annual and interim periods beginning January 1, 2028. The new guidance may be adopted using either a prospective, modified, or retrospective transition approach. The Company is currently evaluating the impact that the adoption of this pronouncement will have on the Company's consolidated financial statements and disclosures, including which transition approach the Company expects to use.

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