11. Change in Accounting Principle — Historically, the Company included warehousing, handling and outbound freight costs in operating expenses on its Consolidated Statements of Operations. Effective January 1, 2023, the Company elected to include these costs in cost of sales instead of operating expenses on its condensed consolidated statements of operations. The effects of the change in accounting have been retrospectively applied to all periods presented. The Company believes that the change in accounting is preferable as it aligns the Company’s classification of this warehousing, handling and outbound freight costs in such a way as to present operational management with a clearer vision of the operational performance by business unit. This accounting change also increases the comparability of the Company’s financial performance with its peer companies as most peer companies include these warehousing, handling and outbound freight costs in cost of sales rather than operating expenses. As a result, this change is intended to help interested parties better understand the Company’s performance and facilitate comparisons with most of the Company’s peer companies. This change in accounting principle does not impact operating income, net income (loss), and net income (loss) per share. The following table compares the Company’s historical classification with the classification after the adoption of the change in accounting for the three and nine months ended September 30, 2023 and 2022:


	Classification after adoption of accounting change						Classification prior to adoption of accounting change
	For the three months ended September 30,						For the three months ended September 30,
	2023			2022			2023			2022
Net sales	$	149,516		$	152,267		$	149,516			152,267
Cost of sales		(106,432	)		(102,629	)		(91,938	)		(90,733	)
Gross profit		43,084			49,638			57,578			61,534
Operating expenses		(38,893	)		(38,394	)		(53,387	)		(50,290	)
Operating income	$	4,191		$	11,244		$	4,191		$	11,244


	Classification after adoption of accounting change						Classification prior to adoption of accounting change
	For the nine months ended September 30,						For the nine months ended September 30,
	2023			2022			2023			2022
Net sales	$	407,191		$	450,063		$	407,191			450,063
Cost of sales		(282,662	)		(299,698	)		(249,294	)		(267,280	)
Gross profit		124,529			150,365			157,897			182,783
Operating expenses		(113,317	)		(113,559	)		(146,685	)		(145,977	)
Operating income	$	11,212		$	36,806		$	11,212		$	36,806