Accrued Expenses

9 Months Ended

Sep. 30, 2024

7. Accrued Expenses

Accrued expenses consist of the followings (in thousands):


	September 30, 2024		December 31, 2023
Employee compensation and benefits (1)	$	14,004	$	4,334
Partner costs		8,867		13,971
Sales and other taxes		3,459		3,963
Inventory, shipping and fulfillment		2,857		6,869
Information technology		2,161		3,176
Outside professional services		1,988		2,927
Advertising		847		872
Other accrued expenses		3,745		6,035
Total accrued expenses	$	37,928	$	42,147

(1) Accrued employee compensation and benefits include accruals for termination and retention benefits of $5.3 million and approximately zero at September 30, 2024 and December 31, 2023, respectively. See Note 12, Restructuring., for additional information on the restructuring expenses and accruals.

Advertising costs, which are primarily comprised of social media, television media, and internet advertising expenses and also include print, radio, and infomercial production costs, were $5.1 million and $22.4 million for the three and nine months ended September 30, 2024, respectively, and $8.9 million and $26.0 million for the three and nine months ended September 30, 2023, respectively.

On September 29, 2023, the Company entered into a financing agreement with IPFS Corporation of California ("IPFS") to finance certain of its annual insurance premiums. The Company financed $2.5 million, which will be paid over a ten month period with the first payment due on November 1, 2023. The financing has an interest rate of 8.83% and IPFS has a security interest in the underlying policies that have been financed. The zero and $1.8 million outstanding as of September 30, 2024 and December 31, 2023, respectively, is recorded in other current liabilities in the condensed consolidated balance sheet and the interest expense is recorded in interest expense in the condensed consolidated statement of operations.

On October 6, 2023, the Company entered into a financing agreement with First Insurance Funding ("FIF") to finance certain of its annual insurance premiums. The Company financed $2.0 million, which will be paid over a nine month period with the first payment due on November 1, 2023. The financing has an interest rate of 8.75% and FIF has a security interest in the underlying policies that have been financed. The zero and $1.4 million outstanding as of September 30, 2024 and December 31, 2023, respectively, is recorded in other current liabilities in the condensed consolidated balance sheet and the interest expense is recorded in interest expense in the condensed consolidated statement of operations.