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SUPPLEMENTAL BALANCE SHEET DISCLOSURES
 6 Months Ended
Jun. 30, 2024
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
SUPPLEMENTAL BALANCE SHEET DISCLOSURES SUPPLEMENTAL BALANCE SHEET DISCLOSURES
Accounts Receivable, Net
As of June 30, 2024, accounts receivable, net consisted of accounts receivable of $29.5 million, less allowance for doubtful accounts of $0.3 million. As of December 31, 2023, accounts receivable, net consisted of accounts receivable of $22.9 million, less allowance for doubtful accounts of $1.6 million.
The change in the allowance for doubtful accounts were as follows:
(In thousands of U.S. dollars)Six months ended June 30, 2024
Year ended December 31, 2023
Balance at beginning of period$1,552 $994 
Allowance for doubtful accounts
(826)558 
Write-off of uncollectible accounts, net
(446)— 
Balance at end of period$280 $1,552 
Inventories
The components of inventories were as follows:
(In thousands of U.S. dollars)
As of June 30, 2024
As of December 31, 2023
Work in process$8,242 $10,336 
Finished goods42,454 45,348 
Total inventories
$50,696 $55,684 
Property and Equipment, Net
Property and equipment, net consisted of the following:
(In thousands of U.S. dollars)
As of June 30, 2024
As of December 31, 2023
Computer hardware, software and equipment$727 $689 
Furniture and fixture539 533 
Machinery and equipment811 812 
Internally developed software896 854 
Gondolas8,220 7,078 
Construction in process32 — 
Leasehold improvements2,098 2,070 
Total property and equipment$13,323 $12,036 
Less accumulated depreciation(7,755)(6,105)
Property and equipment, net$5,568 $5,931 
Depreciation expense for property and equipment for the six months ended June 30, 2024 and six months ended June 30, 2023 was $1.7 million and $2.3 million, respectively.
Depreciation expense pertains to property and equipment utilized as part of the Company’s SG&A activities and therefore has not been allocated to cost of goods sold.
Other Current Liabilities
The major components of other current liabilities consisted of the following (in thousands):
(In thousands of U.S. dollars)
As of June 30, 2024
As of December 31, 2023
Accrued salaries and related expenses$9,191 $8,702 
Accrued sales returns and damages1,751 2,527 
Accrued interest1,453 1,357 
Accrued distribution fees690 590 
Related party liability4,901 5,856 
Accrued professional services4,035 2,901 
Other1,808 1,765 
Total$23,829 $23,698 
The accrued distribution fees related to service charges such as e-commerce shipping and handling costs. The related party liability of $4.9 million and $5.9 million as of June 30, 2024 and December 31, 2023, respectively, reflects the remaining unamortized fair value of the related party inventory contract executed on the acquisition date between
Obagi and the Obagi China Business. This related party liability will be amortized into related party revenue upon the sale of products to the Obagi China Business in subsequent periods.