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Significant Balance Sheet Components
 12 Months Ended
Dec. 31, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Significant Balance Sheet Components

NOTE 4—Significant Balance Sheet Components

 

Inventory consisted of the following:

 

   2023   2022 
   December 31, 
   2023   2022 
Devices—for resale  $5,324   $3,473 
Raw materials   751    14 
Accessories   442    423 
Inventory, Net  $6,517   $3,910 

 

The Company purchases raw materials in bulk to obtain a lower price. The raw materials are resold to third-party manufacturers at the Company’s cost.

 

Distributor returns allowance

 

The Company records reductions to revenue related to future distributor product returns based on the Company’s expectation. The Company had inventory related to distributor product returns totaling approximately $4 and $4, respectively, as of December 31, 2023 and 2022.

 

Prepaid expenses and other current assets consisted of the following:

 

   2023   2022 
   December 31, 
   2023   2022 
Deposits for manufacturing inventory  $197   $— 
Prepaid taxes   361    433 
Refundable value added taxes   —    45 
Prepaid licenses and royalties   125    366 
Director and officer insurance   272    250 
Prepaid parts (direct buy)   77    193 
Prepaid consulting services   110    — 
Other   466    520 
Prepaid expenses and other current assets  $1,608   $1,807 

 

 

Property and equipment consisted of the following:

 

   2023   2022 
   December 31, 
   2023   2022 
Computer equipment  $156   $412 
Software   27    — 
Software [Member]   27    — 
Furniture, fixtures, and office equipment   353    175 
Property and equipment, gross   536    587 
Less: accumulated depreciation and amortization   (465)   (419)
Property and equipment, net  $71   $168 

 

Depreciation and amortization expense of property and equipment for the years ended December 31, 2023 and 2022, was $47 and $244, respectively. During 2022, the Company retired or disposed of computer equipment, software, and leasehold improvements with a cost of $4,751 and accumulated depreciation of $4,621 as the Company stopped manufacturing in 2022 and two U.S. leases were terminated. The Company recorded a loss on the disposal of assets of $130 on these disposals that is included in Other Expense, Net, in the Consolidated Statements of Operations.

 

Contract fulfillment assets are capitalized costs to test and obtain certification for cell phones and data devices with specific carriers. These costs are amortized over the estimated life of the device, which is four years. Contract fulfillment assets for the years ended December 31, 2023 and 2022 are $9,232 and $6,848 respectively. Amortization of contract fulfillment assets for the years ended December 31, 2023 and 2022 was $2,159 and $1,733, respectively.

 

Other assets consisted of the following:

 

   2023   2022 
   December 31, 
   2023   2022 
Advances to third-party manufacturer  $2,000   $2,000 
Director and officer insurance   408    525 
Deposits   325    311 
Other   165    136 
Total Other Assets  $2,898   $2,972 

 

Accrued liabilities consisted of the following:

 

   2023   2022 
   December 31, 
   2023   2022 
Customer allowances  $8,148   $4,130 
Employee-related liabilities   1,755    1,365 
Warranties   518    636 
Accrual for goods received not invoiced   325    301 
Contractual obligations   59    1,107 
Royalties   327    256 
Contract fulfillment costs   568    1,469 
Credits due to customers   122    961 
Returns allowance   6    6 
Legal   168    296 
Other   237    165 
Accrued liabilities  $12,233   $10,692 

 

 

The table below sets forth the activity in the warranty liability, which is included in Accrued Liabilities on the Consolidated Balance Sheets:

 

   2023   2022 
Beginning Balance, January 1  $636   $836 
Additions   1,057    1,493 
Cost of warranty claims   (1,175)   (1,693)
Ending Balance, December 31  $518   $636