5. Balance sheet components

Restricted cash

The Company's restricted cash is a legally restricted deposit held as a compensating balance against its corporate credit card balances.

Accounts receivable allowances for credit losses and returns

Concentration of customers and vendors

The Company primarily sells its products to traditional home medical equipment providers, distributors, and resellers in the United States and in foreign countries on a credit basis. The Company also sells its products direct-to-consumers primarily on a prepayment basis. One customer represented more than 10% of the Company's total revenue for the three and nine months ended September 30, 2026 and 2025. No customer represented more than 10% of the Company’s net accounts receivable balance as of September 30, 2026 and December 31, 2025.

The Company currently purchases raw materials from a limited number of vendors, which resulted in a concentration of three major vendors. For the nine months ended September 30, 2026, the Company’s three major vendors accounted for 13.9%, 13.9%, and 10.1% of total raw material purchases, respectively. For the nine months ended September 30, 2025, the Company’s three major vendors accounted for 18.2%, 11.2%, and 10.2% of total raw material purchases, respectively.

Inventories

Inventories are stated at the lower of cost and net realizable value, using the first-in, first-out, or FIFO, method. The Company records adjustments to inventory for potentially excess, obsolete, slow-moving or impaired items, and losses on firm purchase commitments as a component of cost of sales in the consolidated statements of comprehensive loss. The Company recorded noncurrent inventory related to inventories that are expected to be realized or consumed after one year of $4,183 and $966 as of September 30, 2026 and December 31, 2025, respectively. Noncurrent inventories are primarily related to raw materials purchased in bulk to support long-term expected repairs to reduce costs and are classified in other assets. Inventories that are considered current consist of the following:

Property and equipment

Expenditures for additions, improvements and replacements are capitalized and depreciated to a salvage value of $0. Depreciation and amortization expense for property and equipment was $876 and $970 for the three months ended September 30, 2026 and 2025, respectively, and $2,826 and $2,976 for the nine months ended September 30, 2026 and 2025, respectively. Accumulated depreciation and amortization for property and equipment was $17,953 and $15,863 as of September 30, 2026 and December 31, 2025, respectively.

Long-lived assets

The Company accounts for the impairment and disposition of long-lived assets in accordance with Accounting Standards Codification, or ASC, 360 — Property, Plant, and Equipment. Long-lived assets are reviewed for indicators of impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. No impairments were recorded for the nine months ended September 30, 2026 and 2025.

Goodwill and other identifiable intangible assets

Goodwill

In August 2026, the Company experienced a decline in its public stock price that resulted in its market capitalization falling below its carrying amount (stockholders' equity). This decline was deemed by management to be other than temporary as the quarter progressed, requiring a quantitative analysis to be performed during the quarter ended September 30, 2026. The Company used a discounted cash flow analysis based on Level 3 inputs and determined that the goodwill carrying amount exceeded its fair value and, as a result, an impairment charge of $10,559 was recorded for the three months ended September 30, 2026.

Intangible assets

Current liabilities