| Supplemental Financial Statement Information |
Note 17: Supplemental Financial Statement Information
Components of Other Income (Expense), net, are
summarized as follows (in thousands):
| Schedule of other income expense, net |
|
|
|
|
|
|
|
|
| |
|
Three Months Ended March 31, |
|
| |
|
2026 |
|
|
2025 |
|
| Interest Expense (a) |
|
$ |
(233 |
) |
|
$ |
(128 |
) |
| |
|
|
|
|
|
|
|
|
| Gain on Revaluation of Warrants (b) |
|
|
– |
|
|
|
446 |
|
| Loss on Revaluation of Equity Investment in YFE (c) |
|
|
(2,957 |
) |
|
|
(3,640 |
) |
| Realized Gain on Marketable Securities Investments (d) |
|
|
– |
|
|
|
4 |
|
| (Loss) Gain on Foreign Exchange (e) |
|
|
(372 |
) |
|
|
667 |
|
| Loss on Debt Settlement (f) |
|
|
(124 |
) |
|
|
(944 |
) |
| Interest Income (g) |
|
|
35 |
|
|
|
54 |
|
| Finance Lease Interest Expense (h) |
|
|
(4 |
) |
|
|
(4 |
) |
| Other (i) |
|
|
53 |
|
|
|
33 |
|
| Other Expense, net |
|
$ |
(3,369 |
) |
|
$ |
(3,384 |
) |
Three Months Ended March 31, 2026 and March 31, 2025
| |
(a) |
Interest Expense during the three months ended March 31, 2026, primarily consisted of $0.2 million interest incurred on production facilities and on the factoring liability. Interest expense during the three months ended March 31, 2025, primarily consisted of $0.1 million of interest incurred on production facilities. |
| |
(b) |
During the three months ended March 31, 2025, the Company recorded a $0.4 million fair value gain due to a revaluation of the outstanding 7,894,736 Series A warrants and 7,894,736 Series B warrants issued in December 2024. These warrants were classified as a liability in the quarter ended March 31, 2025. |
| |
(c) |
As the investment in YFE is accounted for under the fair value option, the Company recognized a loss on revaluation of its equity investment in YFE of approximately $3.0 million and $3.6 million for the three months ended March 31, 2026 and March 31, 2025, respectively. The loss reflected decreases in YFE’s stock price during the current reporting periods compared to the respective prior reporting periods. The impact of foreign currency translation is excluded and presented separately. |
| |
(d) |
The realized gain on marketable securities investments recorded during the three months ended March 31, 2025, reflects the gain on the sale of marketable securities prior to maturity date. |
| |
(e) |
The loss on Foreign Exchange during the three months ended March 31, 2026, primarily related to the revaluation of the YFE investment, resulting in a loss of $0.1 million due to the Euro depreciating against the U.S. dollar as compared to prior period and a loss of $0.2 million due to the remeasurement of foreign currency transactions of the Company’s non-U.S. subsidiary. The gain on foreign exchange during the three months ended March 31, 2025 primarily related to the remeasurement of the YFE investment, resulting in a gain of $0.7 million, due to the depreciation of the U.S. dollar against the Euro relative to prior periods. |
| |
(f) |
The loss on debt settlement recorded during the three months ended March 31, 2026, includes a loss of $0.1 million arising from the Section 3(a)(10) transaction completed during the quarter. The loss on debt settlement recorded during the three months ended March 31, 2025, includes a loss of $0.9 million related to the loan settlement agreement with YFE. |
| |
(g) |
Interest Income during the three months ended March 31, 2026, primarily consisted of income from investments in marketable securities, net of premium amortization expense. Interest Income during the three months ended March 31, 2025, primarily consisted of income from investments in marketable securities, net of premium amortization expense, and interest income related to an Employee Retention Tax Credit (“ERTC”) receivable. Each of these sources was individually immaterial. |
| |
(h) |
The finance lease interest expense represents the interest portion of the finance lease obligations for equipment purchased under an equipment lease line. |
| |
(i) |
During the three months ended March 31, 2026, other income of $28,000 was recognized from the recovery of previously written-off accounts receivable, and $24,810 from credit card and other rebates. During the three months ended March 31, 2025, other income of $32,522 was recognized primarily related to credit card rewards. |
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