Supplemental Balance Sheet Information

6 Months Ended

Jun. 30, 2024

Supplemental Balance Sheet Information

Supplemental Balance Sheet Information

(3)  Supplemental Balance Sheet Information

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

Inventory:

	June 30,		December 31,
	2024		2023
Raw materials	$	872	$	1,020
Sub-assemblies		1,219		1,379
Finished goods		1,155		1,342
Total inventory	$	3,246	$	3,741

Prepaid expenses and other current assets:

	June 30,		December 31,
	2024		2023
Prepaid insurance	$	149	$	110
Professional services		45		—
Patents		7		13
Prepaid advertising and marketing		35		41
Taxes		15		47
Other current assets		55		126
Total prepaid expenses and other current assets	$	306	$	337

Accrued and other liabilities:

	June 30,		December 31,
	2024		2023
Payroll and benefits	$	636	$	701
Accrued legal settlements		—		200
Customer deposits		723		639
Taxes		58		61
Accrued professional		431		155
Other liabilities		47		58
Total accrued and other liabilities	$	1,895	$	1,814

Accounts payable:

During the second quarter of 2024, management requested our outside legal counsel to provide guidance with respect to vendor collectability of various accounts payables carried on the books from 2020 and prior. Based on the review of the statute of limitations for the various states, these vendors were located, and legal counsel provided a conclusion if the laws per the respective states if the statute of limitations has expired. The statute of limitations is an affirmative defense in which the defendant introduces evidence, which, if found to be credible, will negate criminal or civil liability, even if it is proven the defendant committed the alleged acts. The party raising the affirmative defense has the burden of proof on establishing that it applies. In a civil action in which a creditor demands payment on a written instrument evidencing a debt, the successful assertion of the statute of limitations defense will bar collection of the debt. In order to assert the statute of limitations as a defense, a defendant must specifically assert the defense is the answer. If a defendant fails to specifically plead the defense, it will be deemed to be waived. Since no action to enforce such liabilities was brought before June 30, 2024, it is our opinion that the liability is time-barred from collection under the respective state laws and should be removed from the Company’s balance sheet.

Therefore, the Company made the decision to write-off the payables totaling $429 thousand. As of June 30, 2024, the write-off of the $429 thousand resulted in a gain on extinguishment of debt which was reported on the Statement of Operations for the three and six months ended June 30, 2024.