Cover Page
Cover Page - shares | 3 Months Ended | |
Jun. 30, 2023 | Aug. 04, 2023 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2023 | |
Document Transition Report | false | |
Entity File Number | 001-31321 | |
Entity Registrant Name | NAUTILUS, INC. | |
Entity Incorporation, State or Country Code | WA | |
Entity Tax Identification Number | 94-3002667 | |
Entity Address, Address Line One | 17750 S.E. 6th Way | |
Entity Address, City or Town | Vancouver | |
Entity Address, State or Province | WA | |
Entity Address, Postal Zip Code | 98683 | |
City Area Code | 360 | |
Local Phone Number | 859-2900 | |
Title of 12(b) Security | Common Stock, no par value | |
Trading Symbol | NLS | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 36,089,978 | |
Entity Central Index Key | 0001078207 | |
Current Fiscal Year End Date | --03-31 | |
Amendment Flag | false | |
Document Fiscal Period Focus | Q1 | |
Document Fiscal Year Focus | 2024 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Jun. 30, 2023 | Mar. 31, 2023 |
Current assets: | ||
Cash and cash equivalents | $ 17,326 | $ 17,362 |
Restricted cash | 954 | 950 |
Trade receivables, net of allowances of $550 and $618 | 13,225 | 21,489 |
Inventories | 39,791 | 46,599 |
Prepaids and other current assets | 7,914 | 8,033 |
Other current assets - restricted, current | 0 | |
Income taxes receivable | 7,235 | 1,789 |
Total current assets | 86,445 | 96,222 |
Property, plant and equipment, net | 30,502 | 32,789 |
Operating lease right-of-use assets | 18,009 | 19,078 |
Other intangible assets, net | 3,075 | 6,787 |
Deferred income tax assets, non-current | 554 | 554 |
Income taxes receivable, non-current | 0 | 5,673 |
Other assets | 1,596 | 2,429 |
Total assets | 140,181 | 163,532 |
Liabilities and Shareholders' Equity | ||
Trade payables | 20,527 | 29,378 |
Accrued liabilities | 12,739 | 15,575 |
Operating lease liabilities, current portion | 4,505 | 4,427 |
Finance lease obligations, current portion | 123 | 122 |
Warranty obligations, current portion | 2,568 | 2,564 |
Income taxes payable, current portion | 1,064 | 328 |
Debt payable, current portion, net of unamortized debt issuance costs of $422 and $586 | 1,807 | 1,642 |
Total current liabilities | 43,333 | 54,036 |
Operating lease liabilities, non-current | 15,182 | 16,380 |
Finance lease obligations, non-current | 254 | 282 |
Warranty obligations, non-current | 731 | 703 |
Income taxes payable, non-current | 2,014 | 2,316 |
Deferred income tax liabilities, non-current | 42 | 253 |
Other non-current liabilities | 5,469 | 1,978 |
Debt payable, non-current, net of unamortized debt issuance costs of $986 and $1,513 | 14,085 | 26,284 |
Total liabilities | 81,110 | 102,232 |
Commitments and contingencies (Note 19) | ||
Shareholders' equity: | ||
Common stock - no par value, 75,000 shares authorized, 35,515 and 31,845 shares issued and outstanding | 12,384 | 10,084 |
Retained earnings | 47,770 | 52,694 |
Paid-in-capital | 217 | 0 |
Accumulated other comprehensive loss | (1,300) | (1,478) |
Total shareholders' equity | 59,071 | 61,300 |
Total liabilities and shareholders' equity | $ 140,181 | $ 163,532 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Unaudited) (Parentheticals) - USD ($) shares in Thousands, $ in Thousands | Jun. 30, 2023 | Mar. 31, 2023 |
Statement of Financial Position [Abstract] | ||
Allowance for doubtful trade receivables | $ 550 | $ 618 |
Debt Issuance Costs, Current, Net | 422 | 586 |
Debt Issuance Costs, Noncurrent, Net | $ 986 | $ 1,513 |
Common stock, par value (in dollars per share) | $ 0 | $ 0 |
Common stock, shares authorized | 75,000 | 75,000 |
Common stock, shares issued | 35,515 | 31,845 |
Common stock, shares outstanding | 35,515 | 31,845 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Income Statement [Abstract] | ||
Net sales | $ 41,750 | $ 54,817 |
Cost of sales | 33,101 | 47,860 |
Gross profit | 8,649 | 6,957 |
Operating expenses: | ||
Selling and marketing | 6,001 | 12,891 |
General and administrative | 8,894 | 12,463 |
Research and development | 3,847 | 5,823 |
Restructuring and exit charges | 440 | 0 |
Goodwill and intangible impairment charge | 0 | 26,965 |
Total operating expenses | 19,182 | 58,142 |
Operating loss | (10,533) | (51,185) |
Other income (expense): | ||
Interest income | 14 | 1 |
Interest expense | (2,467) | (376) |
Other, net | 8,567 | (514) |
Total other income (expense), net | 6,114 | (889) |
Loss from continuing operations before income taxes | (4,419) | (52,074) |
Income tax expense | 505 | 8,096 |
Loss from continuing operations | (4,924) | (60,170) |
Discontinued operations: | ||
Income tax expense of discontinued operations | 0 | 7 |
Loss from discontinued operations | 0 | (7) |
Net loss | $ (4,924) | $ (60,177) |
Earnings Per Share, Basic [Abstract] | ||
Basic income (loss) per share from continuing operations (in dollars per share) | $ (0.15) | $ (1.92) |
Basic loss per share from discontinued operation (in dollars per share) | 0 | 0 |
Basic net income (loss) per share (in dollars per share) | (0.15) | (1.92) |
Earnings Per Share, Diluted [Abstract] | ||
Diluted income (loss) per share from continuing operations (in dollars per share) | (0.15) | (1.92) |
Diluted loss per share from discontinued operation (in dollars per share) | 0 | 0 |
Diluted net income (loss) per share (in dollars per share) | $ (0.15) | $ (1.92) |
Shares used in per share calculations: | ||
Basic (in shares) | 32,355 | 31,405 |
Diluted (in shares) | 32,355 | 31,405 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive (Loss) Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Statement of Comprehensive Income [Abstract] | ||
Net loss | $ (4,924) | $ (60,177) |
Other comprehensive income (loss): | ||
Foreign currency translation, net of income tax (expense) benefit of $8 and $(29) | 178 | (859) |
Comprehensive loss | $ (4,746) | $ (61,036) |
Condensed Condensed Consolidate
Condensed Condensed Consolidated Statements of Comprehensive Income (Unaudited) (Parentheticals) - USD ($) $ in Thousands | 3 Months Ended | |||
Jun. 30, 2023 | Dec. 31, 2022 | Jun. 30, 2022 | Dec. 31, 2021 | |
Statement of Comprehensive Income [Abstract] | ||||
Foreign currency translation tax expense (benefit) | $ 8 | $ 8 | $ (29) | $ 29 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Stockholders' Equity (Unaudited) - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Additional Paid-in Capital |
Beginning balance at Mar. 31, 2022 | $ 164,049 | $ 6,483 | $ 158,093 | $ (527) | |
Balance, shares at Mar. 31, 2022 | 31,268 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net loss | (60,177) | (60,177) | |||
Foreign currency translation adjustment, including income tax expense (benefit) | (859) | (859) | |||
Stock-based compensation expense | 1,979 | $ 1,979 | |||
Common stock issued under equity compensation plan, net of shares withheld for tax payments (in shares) | 205 | ||||
Common stock issued under equity compensation plan, net of shares withheld for tax payments | (270) | $ (270) | |||
Common stock issued under employee stock purchase plan, shares | 0 | ||||
Common stock issued under employee stock purchase plan | 125 | $ 125 | |||
Balance, shares at Jun. 30, 2022 | 31,473 | ||||
Ending balance at Jun. 30, 2022 | 104,847 | $ 8,317 | 97,916 | (1,386) | |
Beginning balance at Mar. 31, 2023 | 61,300 | $ 10,084 | 52,694 | (1,478) | $ 0 |
Balance, shares at Mar. 31, 2023 | 31,845 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net loss | (4,924) | (4,924) | |||
Foreign currency translation adjustment, including income tax expense (benefit) | $ 178 | 178 | |||
Issuance of common stock and pre-funded warrants, net (in shares) | 3,525 | ||||
Issuance of common stock and pre-funded warrants, net | $ 1,552 | $ 1,335 | 217 | ||
Stock-based compensation expense (in shares) | 34 | ||||
Stock-based compensation expense | $ 1,050 | $ 1,050 | |||
Common stock issued under equity compensation plan, net of shares withheld for tax payments (in shares) | (69) | ||||
Common stock issued under equity compensation plan, net of shares withheld for tax payments | (85) | $ (85) | |||
Common stock issued under employee stock purchase plan, shares | 180 | ||||
Common stock issued under employee stock purchase plan | 0 | $ 0 | |||
Balance, shares at Jun. 30, 2023 | 35,515 | ||||
Ending balance at Jun. 30, 2023 | $ 59,071 | $ 12,384 | $ 47,770 | $ (1,300) | $ 217 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Stockholders' Equity - Parenthetical (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |||
Jun. 30, 2023 | Dec. 31, 2022 | Jun. 30, 2022 | Dec. 31, 2021 | |
Statement of Stockholders' Equity [Abstract] | ||||
Foreign currency translation tax expense (benefit) | $ (8) | $ (8) | $ 29 | $ (29) |
Condensed Consolidated Statem_5
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Mar. 31, 2022 | Mar. 31, 2023 | |
Cash flows from operating activities: | ||||
Loss from continuing operations | $ (4,924) | $ (60,170) | ||
Loss from discontinued operations | 0 | (7) | ||
Net loss | (4,924) | (60,177) | ||
Adjustments to reconcile net loss to cash used in operating activities: | ||||
Depreciation and amortization | 3,150 | 2,306 | ||
Provision for allowance for doubtful accounts | 60 | 430 | ||
Inventory lower-of-cost-or net realizable value adjustments | 0 | 644 | ||
Stock-based compensation expense | 1,015 | 1,979 | ||
Liability classified stock-based compensation expense | 8 | 0 | ||
Gain on asset dispositions | (9,021) | 0 | ||
Loss on debt extinguishment | 352 | 0 | ||
Deferred income taxes, net of valuation allowances | (182) | 8,354 | ||
Goodwill and intangible impairment charge | 0 | 26,965 | ||
Other | 832 | (666) | ||
Changes in operating assets and liabilities: | ||||
Trade receivables | 8,095 | 33,966 | ||
Inventories | 7,205 | 8,320 | ||
Prepaids and other assets | 2,109 | 4,012 | ||
Income taxes receivable | 223 | 282 | ||
Trade payables | (8,283) | (25,368) | ||
Accrued liabilities and other liabilities, including warranty obligations | (3,004) | (7,027) | ||
Net cash used in operating activities | (2,365) | (5,980) | ||
Cash flows from investing activities: | ||||
Proceeds from Sale of Equity Method Investments | 2,350 | 0 | ||
Proceeds from sale of indefinite-lived intellectual property | 10,500 | 0 | ||
Purchases of property, plant and equipment | (1,178) | (3,381) | ||
Net cash provided by (used in) investing activities | 11,672 | (3,381) | ||
Cash flows from financing activities: | ||||
Proceeds from long-term debt | 0 | 17,751 | ||
Payments on long-term debt | (12,876) | (10,446) | ||
Payment of debt issuance costs | (762) | 0 | ||
Early termination of debt | (353) | 0 | ||
Payments on finance lease liabilities | (30) | (30) | $ (119) | |
Proceeds from public offering net of transaction costs | 4,547 | 0 | ||
Proceeds from employee stock purchases | 35 | 125 | ||
Tax payments related to stock award issuances | (85) | (270) | ||
Net cash (used in) provided by financing activities | (9,524) | 7,130 | ||
Effect of exchange rate changes | 185 | (3,330) | ||
Net decrease in cash, cash equivalents and restricted cash | (32) | (5,561) | ||
Cash, cash equivalents and restricted cash: | ||||
Cash, cash equivalents and restricted cash at beginning of period | 18,312 | 18,098 | ||
Cash, cash equivalents and restricted cash at end of period | 18,280 | 12,537 | 18,098 | |
Supplemental disclosure of cash flow information: | ||||
Cash paid for interest | 734 | 176 | ||
Cash paid (received) for income taxes, net | 23 | (514) | ||
Supplemental disclosure of non-cash investing activities: | ||||
Capital expenditures incurred but not yet paid | 61 | 1,335 | ||
The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the Condensed Consolidated Balance Sheets to the total of the same amounts shown above: | ||||
Cash and cash equivalents | 17,326 | 7,311 | $ 17,362 | |
Restricted cash | 954 | 1,339 | 950 | |
Other current assets - restricted, current | 0 | 3,887 | ||
Total cash, cash equivalents and restricted cash | $ 18,280 | $ 12,537 | $ 18,098 | $ 18,312 |
General Information
General Information | 3 Months Ended |
Jun. 30, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
General Information | GENERAL INFORMATION Basis of Consolidation and Presentation The accompanying condensed consolidated financial statements present the financial position, results of operations and cash flows of Nautilus, Inc. and its subsidiaries, all of which are wholly owned. Intercompany transactions and balances have been eliminated in consolidation. The accompanying condensed consolidated financial statements have not been audited. We have condensed or omitted certain information and footnote disclosures normally included in financial statements presented in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). Management believes the disclosures contained herein are adequate to make the information presented not misleading. However, these condensed consolidated financial statements should be read in conjunction with our consolidated financial statements and notes thereto included in our Annual Report on Form 10-K for the fiscal year ended March 31, 2023 (the “2023 Form 10-K”). The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Uncertainties regarding such estimates and assumptions are inherent in the preparation of financial statements and actual results could differ from those estimates. Further information regarding significant estimates can be found in our 2023 Form 10-K. In the opinion of management, the accompanying condensed consolidated financial statements reflect all adjustments necessary to present fairly our financial position as of June 30, 2023 and March 31, 2023, and our results of operations, comprehensive loss and shareholders' equity for the three-month period ended June 30, 2023 and 2022 and our cash flows for the three-month period ended June 30, 2023 and 2022. Interim results are not necessarily indicative of results for a full year. Our revenues typically vary seasonally, and this seasonality can have a significant effect on operating results, inventory levels and working capital needs. Unless indicated otherwise, all information regarding our operating results pertain to our continuing operations. Significant Accounting Policies The Company accounts for warrants as either equity-classified or liability-classified instruments based on an assessment of the warrant’s specific terms and applicable authoritative guidance in Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 480, Distinguishing Liabilities from Equity (“ASC 480”) and ASC 815, Derivatives and Hedging (“ASC 815”). The assessment considers whether the warrants are freestanding financial instruments pursuant to ASC 480, meet the definition of a liability pursuant to ASC 480, and whether the warrants meet all of the requirements for equity classification under ASC 815, including whether the warrants are indexed to the Company’s own ordinary shares and whether the warrant holders could potentially require “net cash settlement” in a circumstance outside of the Company’s control, among other conditions for equity classification. This assessment, which requires the use of professional judgment, is conducted at the time of warrant issuance and as of each subsequent quarterly period end date while the warrants are outstanding. For issued or modified warrants that meet all of the criteria for equity classification, the warrants are required to be recorded as a component of equity at the time of issuance. For issued or modified warrants that do not meet all the criteria for equity classification, the warrants are required to be recorded as liabilities at their initial fair value on the date of issuance, and each balance sheet date thereafter. Changes in the estimated fair value of the warrants are recognized as a non-cash gain or loss on the statements of operations. Recent Accounting Pronouncements Recently Adopted Pronouncements ASU 2016-13 In June 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2016-13, “Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments.” ASU 2016-13 requires companies to measure credit losses utilizing a methodology that reflects expected credit losses and requires a consideration of a broader range of reasonable and supportable information to inform credit loss estimates. In May 2019, the FASB issued ASU 2019-05, which provides entities to have certain instruments with an option to irrevocably elect the fair value option. In November 2019, the FASB issued ASU 2019-11, which provides clarification and addresses specific issues about certain aspects of ASU 2016-13. In March 2020, the FASB issued ASC 2020-03, which provides an update to clarify or address specific issues. ASU 2016-13 is effective for fiscal years beginning after December 15, 2022, including interim periods within those years. The Company adopted ASU 2016-13 on April 1, 2023 and it had no material impact on our financial position, results of operations or cash flows. ASU 2020-06 In August 2020, the FASB issued ASU No. 2020-06, "Debt—Debt with Conversion and Other Options (Subtopic 470-20)" and "Derivatives and Hedging—Contracts in Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity," which address issues identified as a result of the complexity associated with applying generally accepted accounting principles for certain financial instruments with characteristics of liabilities and equity. ASU No. 2020-06 will become effective for us on January 1, 2024. Early adoption is permitted, but no earlier than fiscal years beginning after December 15, 2020, including interim periods within those fiscal years. FASB specified that an entity should adopt the guidance as of the beginning of its annual fiscal year. We early adopted ASU No. 2020-06 on April 1, 2023 and it had no material impact on our financial position, results of operations or cash flows. |
Discontinued Operations
Discontinued Operations | 3 Months Ended |
Jun. 30, 2023 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Discontinued Operations | DISCONTINUED OPERATIONSResults from discontinued operations relate to the disposal of our former Nautilus Commercial business, which was completed in April 2011. Although we reached substantial completion of asset liquidation at December 31, 2012, we continued to accrue interest associated with an uncertain tax position on discontinued international operations, and incurred an immaterial amount of product liability expenses associated with products previously sold into the Commercial channel through fiscal 2023. Expenses related to discontinued operations were immaterial for the first quarter of fiscal 2024. |
Restructuring and Exit Charges
Restructuring and Exit Charges | 3 Months Ended |
Jun. 30, 2023 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Exit Charges | RESTRUCTURING AND EXIT CHARGES In February 2023, we announced and began implementing a restructuring plan that included a reduction in workforce and other exit costs. The following table summarizes restructuring reserve activity (in thousands): Employee Severance and Benefits Third Party Costs Total Accrued liability as of March 31, 2023 $ 1,110 $ 123 $ 1,233 Charges / Accruals — 440 440 Payments (588) (440) (1,028) Accrued liability as of June 30, 2023 $ 522 $ 123 $ 645 |
Revenues
Revenues | 3 Months Ended |
Jun. 30, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Revenues | REVENUES Our revenues from contracts with customers disaggregated by revenue source, excluding sales-based taxes, were as follows (in thousands): Three-Months Ended June 30, 2023 2022 Product sales $ 36,771 $ 49,596 Extended warranties and services 750 1,042 Royalty income 427 879 Other (1) 3,802 3,300 Net sales $ 41,750 $ 54,817 (1) Other revenue is primarily subscription revenue and freight and delivery. Subscriptions Sales of our subscriptions are deemed to be one performance obligation and we recognize revenue from these arrangements ratably over the subscription term as the performance obligation is satisfied. Revenue generated from subscriptions is recorded in our Direct segment. We also offer free trials of subscriptions that are bundled with product offerings (e.g., subscription for premium content). For the types of transactions that involve multiple performance obligations, the transaction price requires allocations to the distinct performance obligation because the free trial provides a material right. The transaction price is then allocated to each performance obligation based on stand-alone selling price. We determine stand-alone selling price based on prices charged to customers. Breakage is factored into the determination of the stand-alone selling price of a subscription. Breakage or activation rate is defined as a percentage of those purchasers that never activate a free-trial offering. Our revenues disaggregated by geographic region, based on ship-to address, were as follows (in thousands): Three-Months Ended June 30, 2023 2022 United States $ 32,220 $ 46,081 Canada 4,448 5,807 Europe, the Middle East and Africa 4,356 1,839 All other 726 1,090 Net sales $ 41,750 $ 54,817 The following table provides information about our liabilities from contracts with customers, primarily customer deposits and deferred revenue for which advance consideration is received prior to the transfer of control or the performance obligation is not satisfied. Revenue is recognized when transfer of control occurs. All customer deposits and deferred revenue received are short-term in nature, recognized over the next twelve months. Significant changes in contract liabilities balances, including revenue recognized in the reporting period that was included in opening contract liabilities, are shown below (in thousands): Three-Months Ended June 30, 2023 2022 Balance, beginning of period $ 5,075 $ 6,285 Cash additions 387 1,549 Deferred Revenue 978 982 Revenue recognition (2,008) (2,234) Balance, end of period $ 4,432 $ 6,582 |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Jun. 30, 2023 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | FAIR VALUE MEASUREMENTS Factors used in determining the fair value of financial assets and liabilities are summarized into three broad categories: • Level 1 - observable inputs such as quoted prices (unadjusted) in active liquid markets for identical securities as of the reporting date; • Level 2 - other significant directly or indirectly observable inputs, including quoted prices for similar securities, interest rates, prepayment speeds and credit risk, or observable market prices in markets with insufficient volume and/or infrequent transactions; and • Level 3 - significant inputs that are generally unobservable inputs for which there is little or no market data available, including our own assumptions in determining fair value. We did not have any assets measured at fair value on a recurring basis as of June 30, 2023 or March 31, 2023. Liabilities measured at fair value on a recurring basis were as follows (in thousands): June 30, 2023 Level 1 Level 2 Level 3 Total Liabilities: Common Warrants $ — $ — $ 2,994 $ 2,994 Derivatives Foreign currency forward contracts — 141 — 141 Total liabilities measured at fair value $ — $ 141 $ 2,994 $ 3,135 March 31, 2023 Level 1 Level 2 Level 3 Total Liabilities: Derivatives Foreign currency forward contracts $ — $ 141 $ — $ 141 Total liabilities measured at fair value $ — $ 141 $ — $ 141 We did not have any changes to our valuation techniques during any periods presented. The fair value of our foreign currency forward contracts is calculated as the present value of estimated future cash flows using discount factors derived from relevant Level 2 market inputs, including forward curves and volatility levels. The carrying value of our debt approximates its fair value and falls under Level 2 of the fair value hierarchy, as the interest rate is variable and based on current market rates. The Company determined the fair value of the Common Warrant liability using the price of the Public Warrants as a Level 3 input. Inherent in a Black Scholes valuation model are assumptions related to expected stock price, exercise price, stock-price volatility derived using the Company’s historical volatility, expected term, risk-free interest rate and dividend yield. The risk-free interest rate is based on the U.S. Treasury zero-coupon yield curve on the grant date for a maturity similar to the expected term of the Common Warrants. The dividend yield percentage is zero based on the Company's current expectations related to the payment of dividends during the expected term of the Common Warrants. The key inputs into the Black Scholes pricing model were as follows: June 30, 2023 Stock Price $1.22 Exercise Price $1.35 Expected Life 5.47 Expected Volatility 63.05% Expected Dividend Yield —% Risk Free Rate 4.05% |
Derivatives
Derivatives | 3 Months Ended |
Jun. 30, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives | DERIVATIVES From time to time, we enter into interest rate swaps to fix a portion of our interest expense, and foreign exchange forward contracts to offset the earnings impacts of exchange rate fluctuations on certain monetary assets and liabilities. We do not enter into derivative instruments for any purpose other than to manage interest rate or foreign currency exposure. That is, we do not engage in interest rate or currency exchange rate speculation using derivative instruments. We may hedge our net recognized foreign currency assets and liabilities with forward foreign exchange contracts to reduce the risk that our earnings and cash flows will be adversely affected by changes in foreign currency exchange rates. These derivative instruments hedge assets and liabilities that are denominated in foreign currencies and are carried at fair value with changes in the fair value recorded as other income. These derivative instruments do not subject us to material balance sheet risk due to exchange rate movements because gains and losses on these derivatives are intended to offset gains and losses on the assets and liabilities being hedged. As of June 30, 2023, total outstanding contract notional amounts were $7.2 million and had maturities of 126 days or less. The fair value of our derivative instruments was included in our Condensed Consolidated Balance Sheets as follows (in thousands): Balance Sheet Classification As of June 30, 2023 March 31, 2023 Derivative instruments not designated as cash flow hedges: Foreign currency forward contracts Accrued liabilities $ 141 $ 141 The effect of derivative instruments on our Condensed Consolidated Statements of Operations was as follows (in thousands): Statement of Operations Classification Three-months ended June 30, 2023 2022 Derivative instruments not designated as cash flow hedges: Loss recognized in earnings Other, net $ — $ (96) Income tax expense Income tax expense — (24) |
Inventories
Inventories | 3 Months Ended |
Jun. 30, 2023 | |
Inventory Disclosure [Abstract] | |
Inventories | INVENTORIESInventories are stated at the lower of cost and net realizable value, with cost determined based on the first-in, first-out method. Our inventories consisted of the following (in thousands): As of June 30, 2023 March 31, 2023 Finished goods $ 35,921 $ 42,463 Parts and components 3,870 4,136 Total inventories $ 39,791 $ 46,599 |
Property, Plant and Equipment
Property, Plant and Equipment | 3 Months Ended |
Jun. 30, 2023 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | PROPERTY, PLANT AND EQUIPMENT Property, plant and equipment consisted of the following (in thousands): Estimated As of June 30, 2023 March 31, 2023 Automobiles 5 $ 23 $ 23 Leasehold improvements 4 to 20 3,446 3,426 Computer software and equipment 2 to 7 57,213 57,223 Machinery and equipment 3 to 5 14,953 14,953 Furniture and fixtures 5 to 20 2,034 2,034 Work in progress (1) N/A 4,944 4,061 Total cost 82,613 81,720 Accumulated depreciation (52,111) (48,931) Total property, plant and equipment, net $ 30,502 $ 32,789 (1) Work in progress includes information technology assets and production tooling. Depreciation expense was as follows (in thousands): Three-Months Ended June 30, 2023 2022 Depreciation expense $ 3,135 $ 2,291 |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 3 Months Ended |
Jun. 30, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | GOODWILL AND OTHER INTANGIBLE ASSETS Goodwill We did not have any impairment charges during the first quarter of fiscal 2024, nor did we have any goodwill on our Condensed Consolidated Balance Sheets at June 30, 2023 or March 31, 2023. Other Intangible Assets Other intangible assets consisted of the following (in thousands): Estimated As of June 30, 2023 March 31, 2023 Indefinite-lived trademarks (1) N/A $ 2,900 $ 6,597 Patents 7 to 24 1,044 1,043 3,944 7,640 Accumulated amortization - definite-lived intangible assets (869) (853) Other intangible assets, net $ 3,075 $ 6,787 (1) During the first quarter of fiscal 2023, we identified impairment indicators with our indefinite-lived trademarks resulting in a $2.5 million non-cash intangible impairment charge. During the quarter ended June 30, 2023, we completed the sale of indefinite-lived intellectual property for $10.5 million as part of our ongoing comprehensive strategic review. The sale of these assets, which included the Nautilus brand trademark assets and related licenses, will continue to streamline our brand focus and enhance our financial flexibility. The carrying value of the intangible assets sold was $3.7 million and the resulting gain, net of transaction costs, was recorded in Other Income. Amortization expense was as follows (in thousands): Three-Months Ended June 30, 2023 2022 Amortization expense $ 15 $ 15 Future amortization of definite-lived intangible assets is as follows (in thousands): Remainder of fiscal 2024 $ 46 2025 61 2026 47 2027 3 2028 3 Thereafter 15 $ 175 |
The Sale of Shares In Equity In
The Sale of Shares In Equity Investments | 3 Months Ended |
Jun. 30, 2023 | |
Equity Method Investments and Joint Ventures [Abstract] | |
The Sale of Shares In Equity Investments | THE SALE OF SHARES IN EQUITY INVESTMENTSOn May 1, 2023, the Company completed the sale of Vi Labs for $2.3 million as part of its ongoing comprehensive strategic review. The sale of this equity investment will continue to streamline the Company’s brand focus and enhance its financial flexibility. The carrying value of the assets sold was $0.0 million and transaction costs of the sale was $0.1 million. The resulting gain of $2.2 million, net of transaction costs, will be recorded in the Condensed Consolidated Statements of Operations as Other income and in the Condensed Consolidated Statements of Cash Flows as Proceeds from sale of equity investment for the quarter ended June 30, 2023. |
Leases
Leases | 3 Months Ended |
Jun. 30, 2023 | |
Leases [Abstract] | |
Leases | LEASES We have several non-cancellable operating leases, primarily for office space, that expire at various dates over the next seven years. These leases generally contain renewal options to extend for one lease term of five years. For leases that we are reasonably certain we will exercise the lease renewal options, the options were considered in determining the lease term, and associated potential option payments are included in the lease payments. The payments used in the renewal term were estimated using the percentage rate increase of historical rent payments for each location where the renewal will be exercised. Payments due under the lease contracts include annual fixed payments for office space. Variable payments including payments for our proportionate share of the building’s property taxes, insurance, and common area maintenance are treated as non-lease components and are recognized in the period for which the costs occur. Lease expense was as follows (in thousands): Three-Months Ended June 30, 2023 2022 Operating lease expense $ 1,334 $ 1,533 Amortization of finance lease assets 28 28 Total lease expense $ 1,362 $ 1,561 Leases with an initial term of 12 months or less (“short-term leases”) are not recorded on the balance sheet and are recognized on a straight-line basis over the lease term. Other information related to leases was as follows (dollars in thousands): As of June 30, 2023 March 31, 2023 Supplemental cash flow information related to leases was as follows: Operating leases: Operating lease right-of-use-assets $ 18,009 $ 19,078 Operating lease liabilities, non-current $ 15,182 $ 16,380 Operating lease liabilities, current portion 4,505 4,427 Total operating lease liabilities $ 19,687 $ 20,807 Finance leases: Property, plant and equipment, at cost $ 569 $ 569 Accumulated depreciation (199) (171) Property, plant and equipment, net $ 370 $ 398 Finance lease obligations, non-current $ 254 $ 282 Finance lease obligations, current portion 123 122 Total finance lease liabilities $ 377 $ 404 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flow from operating leases $ 1,594 $ 6,226 Finance cash flows from finance leases 30 119 Additional lease information: ROU assets obtained in exchange for operating lease obligations $ — $ 100 ROU assets obtained in exchange for finance lease obligations — — Reductions to ROU assets resulting from reductions to operating lease obligations 260 1,175 Weighted Average Remaining Lease Term: Operating leases 4.8 years 5.0 years Finance leases 3.3 years 3.5 years Weighted Average Discount Rate: Operating leases 5.05% 5.05% Finance leases 2.08% 2.08% We determined the discount rate for leases using a portfolio approach to determine an incremental borrowing rate to calculate the right-of-use assets and lease liabilities. Maturities of lease liabilities under non-cancellable leases were as follows (in thousands): As of June 30, 2023 Operating leases Finance leases Remainder of fiscal 2024 $ 3,992 $ 90 2025 5,650 120 2026 4,525 120 2027 2,365 60 Thereafter 5,796 — Total undiscounted lease payments 22,328 390 Less imputed interest (2,641) (13) Total lease liabilities $ 19,687 $ 377 |
Capital Stock
Capital Stock | 3 Months Ended |
Jun. 30, 2023 | |
Equity [Abstract] | |
Capital Stock | CAPITAL STOCK Issuance of Common Stock On June 15, 2023, the Company entered into a securities purchase agreement (“Securities Purchase Agreement”) with a certain institutional investor (“Purchaser”). Pursuant to the Securities Purchase Agreement, the Company agreed to sell in a registered direct offering (“Registered Direct Offering”) 3,525,000 shares (“Shares”) of the Company’s common stock, no par value (“Common Stock”), and purchase contracts issued as pre-funded warrants (“Pre-Funded Warrants”) to purchase up to 573,362 shares of Common Stock, which Pre-Funded Warrants are issued to the extent that the Purchaser determines, in its sole discretion, that such Purchaser would beneficially own in excess of 4.99% (or at the Purchaser’s election, 9.99%) of the number of shares of the Common Stock outstanding immediately after giving effect to the issuance of the Securities. The Pre-Funded Warrants have an exercise price of $0.0001 per share and are immediately exercisable and can be exercised at any time after their original issuance date until such Pre-Funded Warrants are exercised in full. Each Share was sold at an offering price of $1.22 and each Pre-Funded Warrant was sold at an offering price of $1.2199 (equal to the purchase price per Share minus the exercise price of the Pre-Funded Warrant). As of June 30, 2023, the Pre-Funded Warrants were not exercised. Pursuant to the Securities Purchase Agreement, in a concurrent private placement (together with the Registered Direct Offering, the "Offerings"), we also issued to the Purchaser unregistered warrants (“Common Warrants”) to purchase up to 4,098,362 shares of our common stock. Each Common Warrant has an exercise price of $1.35 per share, is exercisable at any time beginning six months following their original issuance date and will expire five and a half years from the original issuance date. As of June 30, 2023, the Common Warrants were not exercised. In the event of any Fundamental Transaction, including any merger or consolidation, sale of assets, tender or exchange offer for 50% or more of outstanding common stock, reclassification, reorganization or recapitalization of our shares of common stock, or purchase of more than 50% or more of our outstanding shares of common stock, then upon any subsequent exercise of a Common Warrant, the holder will have the right to receive as alternative consideration, for each share of common stock that would have been issuable upon such exercise immediately prior to the occurrence of such Fundamental Transaction, the number of shares of common stock of the successor or acquiring corporation of our company, if it is the surviving corporation, and any additional consideration receivable upon or as a result of such transaction by a holder of the number of shares of common stock for which the Common Warrant is exercisable immediately prior to such event. Notwithstanding the foregoing, in the event of a Fundamental Transaction, the holders of the Common Warrants have the right to require us or a successor entity to redeem the Common Warrants for cash in the amount of the Black Scholes Value (as defined in each Common Warrant) of the unexercised portion of the Common Warrants concurrently with or within 30 days following the consummation of a fundamental transaction. The Company accounts for its Common Warrants in accordance with the guidance contained in ASC 815-40, Derivatives and Hedging - Contracts on an Entity’s Own Equity, and determined that the Common Warrants do not meet the criteria for equity treatment thereunder. As such, each Common Warrant must be recorded as a liability and is subject to re-measurement at each balance sheet date. Refer to Note 5 - Fair Value Measurements for further details. Changes in fair value are recognized in change in fair value of warrant liability in the Company’s condensed consolidated statements of operations. Roth Capital Partners, LLC (the “Placement Agent”) acted as the exclusive placement agent for the Offerings, pursuant to a Placement Agency Agreement, dated June 15, 2023, by and between the Company and the Placement Agent (the “Placement Agreement”). Pursuant to the Placement Agreement, we have agreed to pay the Placement Agent a cash placement fee equal to 7.0% of the aggregate gross proceeds raised in the Offerings from sales arranged for by the Placement Agent. Subject to certain conditions, we also have agreed to reimburse all reasonable travel and other out-of-pocket expenses of the Placement Agent in connection with the Offerings, including but not limited to legal fees, up to a maximum of $75,000. The Placement Agreement contains customary representations, warranties and agreements by us and customary conditions to closing. We have agreed to indemnify the Placement Agent against certain liabilities, including liabilities under the Securities Act of 1933, as amended (the “Securities Act”), and liabilities arising from breaches of representations and warranties contained in the Placement Agreement, or to contribute to payments that the Placement Agent may be required to make in respect of those liabilities. We received net proceeds of $4.6 million from the Offerings, net of offering expenses paid to the Placement Agent totaling $0.4 million, which proceeds will be used for general corporate purposes. The closing of the Offerings took place on June 20, 2023. The Securities were offered and sold pursuant to our shelf registration statement on Form S-3 (File No. 333-249979) initially filed with the Securities and Exchange Commission (the “Commission”) on November 9, 2020 and declared effective on October 28, 2021. A prospectus supplement relating to the Registered Direct Offering was filed with the Commission on June 15, 2023. None of the Common Warrants or the shares of Common Stock issuable upon the exercise of the Common Warrants are registered under the Securities Act. The Common Warrants and shares of Common Stock issuable upon exercise thereof will be issued in reliance on the exemptions from registration provided by Section 4(a)(2) under the Securities Act and Regulation D promulgated thereunder for transactions not involving a public offering. |
Accrued Liabilities
Accrued Liabilities | 3 Months Ended |
Jun. 30, 2023 | |
Payables and Accruals [Abstract] | |
Accrued Liabilities | ACCRUED LIABILITIES Accrued liabilities consisted of the following (in thousands): As of June 30, 2023 March 31, 2023 Payroll and related liabilities $ 3,744 $ 5,220 Deferred revenue 4,432 5,075 Reserves (1) 960 1,200 Accrued Tariffs 1,224 1,167 Other 2,379 2,913 Total accrued liabilities $ 12,739 $ 15,575 (1) Reserves primarily consists of inventory, sales return, sales tax and product liability reserves. |
Product Warranties
Product Warranties | 3 Months Ended |
Jun. 30, 2023 | |
Product Warranties Disclosures [Abstract] | |
Product Warranties | PRODUCT WARRANTIESOur products carry defined warranties for defects in materials or workmanship which, according to their terms, generally obligate us to pay the costs of supplying and shipping replacement parts to customers and, in certain instances, pay for labor and other costs to service products. Outstanding product warranty periods range from thirty days to, in limited circumstances, the lifetime of certain product components. We record a liability at the time of sale for the estimated costs of fulfilling future warranty claims. If necessary, we adjust the liability for specific warranty-related matters when they become known and are reasonably estimable. Estimated warranty expense is included in cost of sales, based on historical warranty claim experience and available product quality data. Warranty expense is affected by the performance of new products, significant manufacturing or design defects not discovered until after the product is delivered to the customer, product failure rates, and higher or lower than expected repair costs. If warranty expense differs from previous estimates, or if circumstances change such that the assumptions inherent in previous estimates are no longer valid, the amount of product warranty obligations is adjusted accordingly. Changes in our product warranty obligations were as follows (in thousands): Three-Months Ended June 30, 2023 2022 Balance, beginning of period $ 3,267 $ 6,216 Accruals 1,404 844 Payments (1,372) (2,064) Balance, end of period $ 3,299 $ 4,996 |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 3 Months Ended |
Jun. 30, 2023 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Loss | ACCUMULATED OTHER COMPREHENSIVE LOSS The following tables set forth the changes in accumulated other comprehensive loss, net of tax (in thousands): Foreign Currency Translation Adjustments Accumulated Other Comprehensive Loss Balance, March 31, 2023 $ (1,478) $ (1,478) Current period other comprehensive income before reclassifications 178 178 Balance, June 30, 2023 $ (1,300) $ (1,300) Foreign Currency Translation Adjustments Accumulated Other Comprehensive Loss Balance, March 31, 2022 $ (527) $ (527) Current period other comprehensive income before reclassifications (859) (859) Balance, June 30, 2022 $ (1,386) $ (1,386) |
Loss Per Share
Loss Per Share | 3 Months Ended |
Jun. 30, 2023 | |
Earnings Per Share [Abstract] | |
LOSS PER SHARE | LOSS PER SHARE Basic per share amounts were computed using the weighted average number of common shares outstanding. Diluted per share amounts were calculated using the number of basic weighted average shares outstanding increased by dilutive potential common shares related to stock-based awards, as determined by the treasury stock method. Basic income per share amounts were computed using the weighted average number of common shares outstanding. Diluted income per share amounts were calculated using the number of basic weighted average shares outstanding increased by dilutive potential common shares related to stock-based awards, as determined by the treasury stock method. The weighted average numbers of shares outstanding used to compute (loss) income per share were as follows (in thousands): Three-Months Ended June 30, 2023 2022 Shares used to calculate basic income per share 32,355 31,405 Dilutive effect of outstanding stock options, performance stock units and restricted stock units — — Shares used to calculate diluted income per share 32,355 31,405 Potentially Dilutive Shares The weighted average number of potentially dilutive shares outstanding listed in the table below were excluded from the computation of diluted per share amounts since we had a loss from continuing operations in both periods, as such, the exercise or conversion of any potentially dilutive shares would increase the number of shares in the denominator and result in a lower loss per diluted share. The weighted average number of potentially dilutive shares outstanding were as follows (in thousands): Three-Months Ended June 30, 2023 2022 Stock options — 156 RSUs 48 296 PSUs — 24 Total potentially dilutive shares excluded due to net loss 48 476 Anti-Dilutive Shares The weighted average numbers of shares outstanding listed in the table below were anti-dilutive and excluded from the computation of diluted loss per share. In the case of restricted stock units, this is because unrecognized compensation expense exceeds the current value of the awards (i.e., grant date market value was higher than current average market price). In the case of stock options, this is because the average market price did not exceed the exercise price. These shares may be anti-dilutive potential common shares in the future (in thousands): |
Segment and Enterprise-wide Inf
Segment and Enterprise-wide Information | 3 Months Ended |
Jun. 30, 2023 | |
Segment Reporting [Abstract] | |
Segment and Enterprise-wide Information | SEGMENT AND ENTERPRISE-WIDE INFORMATION We have two operating segments, Direct and Retail. There were no changes in our operating segments during the three-months ended June 30, 2023. We evaluate performance of the operating segments using several factors, of which the primary financial measures are net sales and reportable segment contribution. Contribution is the measure of profit or loss, defined as net sales less product costs and directly attributable expenses. Directly attributable expenses include selling and marketing expenses, general and administrative expenses, and research and development expenses that are directly related to segment operations. Segment assets are those directly assigned to an operating segment's operations, primarily accounts receivable, inventories, goodwill and other intangible assets. Unallocated assets primarily include cash, cash equivalents and restricted cash, derivative securities, shared information technology infrastructure, distribution centers, corporate headquarters, prepaids and other current assets, deferred income tax assets and other assets. Capital expenditures directly attributable to the Direct and Retail segments were not significant in any period. Following is summary information by reportable segment (in thousands): Three-Months Ended June 30, 2023 2022 Net sales: Direct $ 21,846 $ 26,476 Retail 19,477 27,444 Royalty 427 897 Consolidated net sales $ 41,750 $ 54,817 Contribution: Direct $ (4,708) $ (9,893) Retail 382 (5,408) Royalty 427 897 Consolidated contribution $ (3,899) $ (14,404) Reconciliation of consolidated contribution to loss from continuing operations: Consolidated contribution $ (3,899) $ (14,404) Amounts not directly related to segments: Operating expenses (1) (6,634) (36,781) Other expense, net 6,114 (889) Income tax expense (505) (8,096) Loss from continuing operations $ (4,924) $ (60,170) (1) Included in unallocated Operating expenses for the three months ended June 30, 2022 is $25.4 million of Goodwill and intangible impairment charge related to the Direct segment and $1.6 million of intangible impairment charge related to the Retail segment that is not included in the contribution performance measured by the chief operating decision maker. As of June 30, 2023 March 31, 2023 Assets: Direct $ 43,164 $ 50,493 Retail 39,367 58,214 Unallocated corporate 57,650 54,825 Total assets $ 140,181 $ 163,532 The following customer accounted for 10% or more of total net sales as follows: Three-Months Ended June 30, 2023 2022 Amazon.com 11.2% 29.4% |
Borrowings
Borrowings | 3 Months Ended |
Jun. 30, 2023 | |
Debt Disclosure [Abstract] | |
Borrowings | BORROWINGS Entry into Amended Term Loan Facility On April 25, 2023, we entered into an amendment (the “ Term Loan Amendment ”) to our existing Term Loan with Crystal Financial LLC, d/b/a SLR Credit Solutions ("SLR") dated as of November 30, 2022 (as amended, the "SLR Term Loan"). The Term Loan Amendment permits us to enter into certain asset disposition transactions (the “ Specified Transactions ”) and a license amendment transaction (the “ License Amendment Transaction ”). In connection therewith, the minimum excess availability covenant will step-down from the greater of: $10.0 million and 12.5% of the Combined Line Cap, to the greater of: (a) $9.0 million and 12.5% of the Combined Line Cap after the consummation of the first Specified Transaction and (b) $7.0 million and 12.5% of the Combined Line Cap after the consummation of each subsequent Specified Transaction. We prepaid $11.8 million of principal outstanding on the Term Loan with the cash proceeds received from the consummation of the Specified Transactions and the License Amendment Transaction. Amendment to Existing ABL Credit Agreement On April 25, 2023, we entered into an amendment (the “ ABL Amendment ”) to our existing Credit Agreement with Wells Fargo Bank, National Association ("Wells Fargo") dated as of January 31, 2020 (as amended, the “ ABL Credit Facility Agreement ”) with Wells Fargo Bank, National Association (“ Wells Fargo ”). The ABL Amendment permits us to enter into the Specified Transactions and the License Amendment Transaction, subject to satisfaction of the terms and conditions set forth therein. In connection therewith, the minimum excess availability covenant will step-down from the greater of: $10.0 million and 12.5% of the Combined Line Cap, to the greater of: (a) $9.0 million and 12.5% of the Combined Line Cap after the consummation of the first Specified Transaction and (b) $7.0 million and 12.5% of the Combined Line Cap after the consummation of each subsequent Specified Transaction. In addition, the ABL Amendment reduced the maximum revolving loan commitment amount from $100 million to $60 million. In connection with the amendment of each of the SLR Term Loan and ABL Credit Facility, we recorded a loss of $0.9 million and $0.6 million, respectively, as a component of Other, net in our Condensed Consolidated Statements of Operations. As of June 30, 2023, outstanding principal and accrued and unpaid interest totaled $17.3 million, with $17.1 million and $0.2 million under our SLR Term Loan and ABL Credit Facility, respectively. As of June 30, 2023, we were in compliance with the financial covenants contained in the agreements governing both the SLR Term Loan and ABL Credit Facility, and $9.5 million was available for borrowing under ABL Credit Facility. As of June 30, 2023, our interest rate was 10.28% for the ABL Credit Facility and 13.79% for the SLR Term Loan. Interest on the ABL Credit Facility accrues at the Secured Overnight Financing Rate ("SOFR") plus a margin of 5.00% to 5.50% (based on average quarterly availability) and interest on the SLR Term Loan Facility accrues at SOFR plus a margin of 7.75% to 8.25% (based on fixed charge coverage ratio). The balance sheet classification of the borrowings under the loan facilities has been determined in accordance with ASC 470, Debt . |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Jun. 30, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | COMMITMENTS AND CONTINGENCIES Operating leases We lease property and equipment under non-cancellable operating leases which, in the aggregate, extend through 2029. Many of these leases contain renewal options and provide for rent escalations and payment of real estate taxes, maintenance, insurance and certain other operating expenses of the properties. For additional information related to leases, see Note 11 Leases . Guarantees, Commitments and Off-Balance Sheet Arrangements As of June 30, 2023, we had standby letters of credit of $1.6 million. We have long lead times for inventory purchases and, therefore, must secure factory capacity from our vendors in advance. As of June 30, 2023, we had approximately $33.0 million, compared to $12.1 million as of March 31, 2023, in non-cancellable market-based purchase obligations, primarily to secure additional factory capacity for inventory purchases in the next twelve months. Purchase obligations can vary from quarter-to-quarter and versus the same period in prior years due to a number of factors, including the amount of products that are shipped directly to Retail customer warehouses versus through Nautilus warehouses. In the ordinary course of business, we enter into agreements that require us to indemnify counterparties against third-party claims. These may include: agreements with vendors and suppliers, under which we may indemnify them against claims arising from use of their products or services; agreements with customers, under which we may indemnify them against claims arising from their use or sale of our products; real estate and equipment leases, under which we may indemnify lessors against third-party claims relating to the use of their property; agreements with licensees or licensors, under which we may indemnify the licensee or licensor against claims arising from their use of our intellectual property or our use of their intellectual property; and agreements with parties to debt arrangements, under which we may indemnify them against claims relating to their participation in the transactions. The nature and terms of these indemnification obligations vary from contract to contract, and generally a maximum obligation is not stated within the agreements. We hold insurance policies that mitigate potential losses arising from certain types of indemnification obligations. Management does not deem these obligations to be significant to our financial position, results of operations or cash flows, and therefore, no related liabilities were recorded as of June 30, 2023. Legal Matters From time to time, in the ordinary course of business, we may be involved in various claims, lawsuits and other proceedings. These legal and tax proceedings involve uncertainty as to the eventual outcomes and losses which may be realized when one or more future events occur or fail to occur. |
Subsequent Events
Subsequent Events | 3 Months Ended |
Jun. 30, 2023 | |
Subsequent Events [Abstract] | |
Subsequent Events | SUBSEQUENT EVENTS Amendment to Existing Term Loan Credit Agreement On July 28, 2023, we entered into an amendment (the “Second Term Loan Amendment”) to our existing SLR Term Loan with SLR as amended on April 25, 2023. Capitalized terms used but not defined in this section of this report have the meanings ascribed to such terms in the SLR Term Loan. The Second Term Loan Amendment will provide us with a greater borrowing advance rate for certain eligible accounts owing by Amazon.com, Inc. and its affiliates and allow for certain reports to be delivered monthly (rather than weekly) so long as specified conditions are satisfied. Other than as specifically provided in the Term Loan Amendment, the Second Term Loan Amendment had no effect on any schedules, exhibits or attachments to the Term Loan Credit Agreement. Other than as specifically provided in the Second Term Loan Amendment, the Guaranty and Security Agreements related to the Term Loan Credit Agreement remain in effect. This description of the Second Term Loan Amendment is a summary only and qualified in its entirety by reference to the text of the Term Loan Amendment, which is filed as Exhibit 10.3. Amendment to Existing ABL Credit Agreement On July 28, 2023, we entered into an amendment (the “Second ABL Amendment”) to our existing ABL Credit Facility Agreement with Wells Fargo as amended on April 25, 2023. Capitalized terms used but not defined in this section of this report have the meanings ascribed to such terms in the ABL Credit Facility Agreement. The Second ABL Amendment will provide us with a greater borrowing advance rate for certain eligible accounts owing by Amazon.com, Inc. and its affiliates and allow for certain reports to be delivered monthly (rather than weekly) so long as specified conditions are satisfied. Other than as specifically provided in the ABL Amendment, the Second ABL Amendment had no effect on any schedules, exhibits or attachments to the ABL Credit Facility Agreement. In addition, the Second ABL Amendment will reduce the maximum revolving loan commitment amount from $60.0 million to $40.0 million. Other than as specifically provided in the ABL Amendment, the Second ABL Amendment had no effect on any schedules, exhibits or attachments to the ABL Credit Facility Agreement. Other than as specifically provided in the Second ABL Amendment, the Guaranty and Security Agreement related to the ABL Credit Facility Agreement remains in effect. This description of the Second ABL Amendment is a summary only and qualified in its entirety by reference to the text of the ABL Amendment, which is filed as Exhibit 10.4. Issuance of Common Stock As described in Note 12, Capital Stock, on June 15, 2023, the Company entered into a Securities Purchase Agreement to sell in a Registered Direct Offering 3,525,000 shares of the Company’s common stock and purchase contracts issued as “Pre-Funded Warrants” to purchase up to 573,362 shares of Common Stock. The closing of the Offering took place on June 20, 2023. On July 28, 2023, 573,362 shares of Common Stock were exercised. |
General Information (Policies)
General Information (Policies) | 3 Months Ended |
Jun. 30, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Warrants | The Company accounts for warrants as either equity-classified or liability-classified instruments based on an assessment of the warrant’s specific terms and applicable authoritative guidance in Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 480, Distinguishing Liabilities from Equity (“ASC 480”) and ASC 815, Derivatives and Hedging (“ASC 815”). The assessment considers whether the warrants are freestanding financial instruments pursuant to ASC 480, meet the definition of a liability pursuant to ASC 480, and whether the warrants meet all of the requirements for equity classification under ASC 815, including whether the warrants are indexed to the Company’s own ordinary shares and whether the warrant holders could potentially require “net cash settlement” in a circumstance outside of the Company’s control, among other conditions for equity classification. This assessment, which requires the use of professional judgment, is conducted at the time of warrant issuance and as of each subsequent quarterly period end date while the warrants are outstanding. For issued or modified warrants that meet all of the criteria for equity classification, the warrants are required to be recorded as a component of equity at the time of issuance. For issued or modified warrants that do not meet all the criteria for equity classification, the warrants are required to be recorded as liabilities at their initial fair value on the date of issuance, and each balance sheet date thereafter. Changes in the estimated fair value of the warrants are recognized as a non-cash gain or loss on the statements of operations. |
New Accounting Pronouncements | Recent Accounting Pronouncements Recently Adopted Pronouncements ASU 2016-13 In June 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2016-13, “Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments.” ASU 2016-13 requires companies to measure credit losses utilizing a methodology that reflects expected credit losses and requires a consideration of a broader range of reasonable and supportable information to inform credit loss estimates. In May 2019, the FASB issued ASU 2019-05, which provides entities to have certain instruments with an option to irrevocably elect the fair value option. In November 2019, the FASB issued ASU 2019-11, which provides clarification and addresses specific issues about certain aspects of ASU 2016-13. In March 2020, the FASB issued ASC 2020-03, which provides an update to clarify or address specific issues. ASU 2016-13 is effective for fiscal years beginning after December 15, 2022, including interim periods within those years. The Company adopted ASU 2016-13 on April 1, 2023 and it had no material impact on our financial position, results of operations or cash flows. ASU 2020-06 In August 2020, the FASB issued ASU No. 2020-06, "Debt—Debt with Conversion and Other Options (Subtopic 470-20)" and "Derivatives and Hedging—Contracts in Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity," which address issues identified as a result of the complexity associated with applying generally accepted accounting principles for certain financial instruments with characteristics of liabilities and equity. ASU No. 2020-06 will become effective for us on January 1, 2024. Early adoption is permitted, but no earlier than fiscal years beginning after December 15, 2020, including interim periods within those fiscal years. FASB specified that an entity should adopt the guidance as of the beginning of its annual fiscal year. We early adopted ASU No. 2020-06 on April 1, 2023 and it had no material impact on our financial position, results of operations or cash flows. |
Restructuring and Exit Charges
Restructuring and Exit Charges (Tables) | 3 Months Ended |
Jun. 30, 2023 | |
Restructuring and Related Activities [Abstract] | |
Schedule of Restructuring Reserve by Type of Cost | The following table summarizes restructuring reserve activity (in thousands): Employee Severance and Benefits Third Party Costs Total Accrued liability as of March 31, 2023 $ 1,110 $ 123 $ 1,233 Charges / Accruals — 440 440 Payments (588) (440) (1,028) Accrued liability as of June 30, 2023 $ 522 $ 123 $ 645 |
Revenues (Tables)
Revenues (Tables) | 3 Months Ended |
Jun. 30, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | Our revenues from contracts with customers disaggregated by revenue source, excluding sales-based taxes, were as follows (in thousands): Three-Months Ended June 30, 2023 2022 Product sales $ 36,771 $ 49,596 Extended warranties and services 750 1,042 Royalty income 427 879 Other (1) 3,802 3,300 Net sales $ 41,750 $ 54,817 (1) Other revenue is primarily subscription revenue and freight and delivery. Subscriptions Sales of our subscriptions are deemed to be one performance obligation and we recognize revenue from these arrangements ratably over the subscription term as the performance obligation is satisfied. Revenue generated from subscriptions is recorded in our Direct segment. We also offer free trials of subscriptions that are bundled with product offerings (e.g., subscription for premium content). For the types of transactions that involve multiple performance obligations, the transaction price requires allocations to the distinct performance obligation because the free trial provides a material right. The transaction price is then allocated to each performance obligation based on stand-alone selling price. We determine stand-alone selling price based on prices charged to customers. Breakage is factored into the determination of the stand-alone selling price of a subscription. Breakage or activation rate is defined as a percentage of those purchasers that never activate a free-trial offering. Our revenues disaggregated by geographic region, based on ship-to address, were as follows (in thousands): Three-Months Ended June 30, 2023 2022 United States $ 32,220 $ 46,081 Canada 4,448 5,807 Europe, the Middle East and Africa 4,356 1,839 All other 726 1,090 Net sales $ 41,750 $ 54,817 |
Contract with Customer, Asset and Liability | Significant changes in contract liabilities balances, including revenue recognized in the reporting period that was included in opening contract liabilities, are shown below (in thousands): Three-Months Ended June 30, 2023 2022 Balance, beginning of period $ 5,075 $ 6,285 Cash additions 387 1,549 Deferred Revenue 978 982 Revenue recognition (2,008) (2,234) Balance, end of period $ 4,432 $ 6,582 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Jun. 30, 2023 | |
Fair Value Disclosures [Abstract] | |
Assets Measured at Fair Value on a Recurring Basis | Liabilities measured at fair value on a recurring basis were as follows (in thousands): June 30, 2023 Level 1 Level 2 Level 3 Total Liabilities: Common Warrants $ — $ — $ 2,994 $ 2,994 Derivatives Foreign currency forward contracts — 141 — 141 Total liabilities measured at fair value $ — $ 141 $ 2,994 $ 3,135 March 31, 2023 Level 1 Level 2 Level 3 Total Liabilities: Derivatives Foreign currency forward contracts $ — $ 141 $ — $ 141 Total liabilities measured at fair value $ — $ 141 $ — $ 141 |
Fair Value Measurement Inputs and Valuation Techniques | The key inputs into the Black Scholes pricing model were as follows: June 30, 2023 Stock Price $1.22 Exercise Price $1.35 Expected Life 5.47 Expected Volatility 63.05% Expected Dividend Yield —% Risk Free Rate 4.05% |
Derivatives (Tables)
Derivatives (Tables) | 3 Months Ended |
Jun. 30, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value | The fair value of our derivative instruments was included in our Condensed Consolidated Balance Sheets as follows (in thousands): Balance Sheet Classification As of June 30, 2023 March 31, 2023 Derivative instruments not designated as cash flow hedges: Foreign currency forward contracts Accrued liabilities $ 141 $ 141 |
Derivative Instruments, Gain (Loss) | The effect of derivative instruments on our Condensed Consolidated Statements of Operations was as follows (in thousands): Statement of Operations Classification Three-months ended June 30, 2023 2022 Derivative instruments not designated as cash flow hedges: Loss recognized in earnings Other, net $ — $ (96) Income tax expense Income tax expense — (24) |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
Jun. 30, 2023 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventories, Net of Valuation Allowances | Our inventories consisted of the following (in thousands): As of June 30, 2023 March 31, 2023 Finished goods $ 35,921 $ 42,463 Parts and components 3,870 4,136 Total inventories $ 39,791 $ 46,599 |
Property, Plant, and Equipment
Property, Plant, and Equipment (Tables) | 3 Months Ended |
Jun. 30, 2023 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property, Plant and Equipment | Property, plant and equipment consisted of the following (in thousands): Estimated As of June 30, 2023 March 31, 2023 Automobiles 5 $ 23 $ 23 Leasehold improvements 4 to 20 3,446 3,426 Computer software and equipment 2 to 7 57,213 57,223 Machinery and equipment 3 to 5 14,953 14,953 Furniture and fixtures 5 to 20 2,034 2,034 Work in progress (1) N/A 4,944 4,061 Total cost 82,613 81,720 Accumulated depreciation (52,111) (48,931) Total property, plant and equipment, net $ 30,502 $ 32,789 (1) Work in progress includes information technology assets and production tooling. |
Schedule Of Depreciation Expense | Depreciation expense was as follows (in thousands): Three-Months Ended June 30, 2023 2022 Depreciation expense $ 3,135 $ 2,291 |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 3 Months Ended |
Jun. 30, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Finite-Lived Intangible Assets | Other intangible assets consisted of the following (in thousands): Estimated As of June 30, 2023 March 31, 2023 Indefinite-lived trademarks (1) N/A $ 2,900 $ 6,597 Patents 7 to 24 1,044 1,043 3,944 7,640 Accumulated amortization - definite-lived intangible assets (869) (853) Other intangible assets, net $ 3,075 $ 6,787 (1) During the first quarter of fiscal 2023, we identified impairment indicators with our indefinite-lived trademarks resulting in a $2.5 million non-cash intangible impairment charge. |
Schedule of Indefinite-Lived Intangible Assets | Other intangible assets consisted of the following (in thousands): Estimated As of June 30, 2023 March 31, 2023 Indefinite-lived trademarks (1) N/A $ 2,900 $ 6,597 Patents 7 to 24 1,044 1,043 3,944 7,640 Accumulated amortization - definite-lived intangible assets (869) (853) Other intangible assets, net $ 3,075 $ 6,787 (1) During the first quarter of fiscal 2023, we identified impairment indicators with our indefinite-lived trademarks resulting in a $2.5 million non-cash intangible impairment charge. |
Amortization Expense | Amortization expense was as follows (in thousands): Three-Months Ended June 30, 2023 2022 Amortization expense $ 15 $ 15 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense | Future amortization of definite-lived intangible assets is as follows (in thousands): Remainder of fiscal 2024 $ 46 2025 61 2026 47 2027 3 2028 3 Thereafter 15 $ 175 |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Jun. 30, 2023 | |
Leases [Abstract] | |
Lease, Cost | Lease expense was as follows (in thousands): Three-Months Ended June 30, 2023 2022 Operating lease expense $ 1,334 $ 1,533 Amortization of finance lease assets 28 28 Total lease expense $ 1,362 $ 1,561 |
Lessee, Supplemental Cash Flows Information | Other information related to leases was as follows (dollars in thousands): As of June 30, 2023 March 31, 2023 Supplemental cash flow information related to leases was as follows: Operating leases: Operating lease right-of-use-assets $ 18,009 $ 19,078 Operating lease liabilities, non-current $ 15,182 $ 16,380 Operating lease liabilities, current portion 4,505 4,427 Total operating lease liabilities $ 19,687 $ 20,807 Finance leases: Property, plant and equipment, at cost $ 569 $ 569 Accumulated depreciation (199) (171) Property, plant and equipment, net $ 370 $ 398 Finance lease obligations, non-current $ 254 $ 282 Finance lease obligations, current portion 123 122 Total finance lease liabilities $ 377 $ 404 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flow from operating leases $ 1,594 $ 6,226 Finance cash flows from finance leases 30 119 Additional lease information: ROU assets obtained in exchange for operating lease obligations $ — $ 100 ROU assets obtained in exchange for finance lease obligations — — Reductions to ROU assets resulting from reductions to operating lease obligations 260 1,175 Weighted Average Remaining Lease Term: Operating leases 4.8 years 5.0 years Finance leases 3.3 years 3.5 years Weighted Average Discount Rate: Operating leases 5.05% 5.05% Finance leases 2.08% 2.08% |
Lessee, Operating Lease, Liability, Maturity | Maturities of lease liabilities under non-cancellable leases were as follows (in thousands): As of June 30, 2023 Operating leases Finance leases Remainder of fiscal 2024 $ 3,992 $ 90 2025 5,650 120 2026 4,525 120 2027 2,365 60 Thereafter 5,796 — Total undiscounted lease payments 22,328 390 Less imputed interest (2,641) (13) Total lease liabilities $ 19,687 $ 377 |
Capital Stock (Tables)
Capital Stock (Tables) | 3 Months Ended |
Jun. 30, 2023 | |
Equity [Abstract] | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation | The following table presents the change in the fair value of Common Warrants that is recognized in change in fair value of warrant liability in the condensed consolidated statements of operations for the periods indicated below (in thousands): Three-Months Ended June 30, 2023 2022 Beginning liability balance $ — $ — Issuance of common stock warrant liability 2,994 — Ending liability balance $ 2,994 $ — |
Accrued Liabilities (Tables)
Accrued Liabilities (Tables) | 3 Months Ended |
Jun. 30, 2023 | |
Payables and Accruals [Abstract] | |
Schedule of Accrued Liabilities | Accrued liabilities consisted of the following (in thousands): As of June 30, 2023 March 31, 2023 Payroll and related liabilities $ 3,744 $ 5,220 Deferred revenue 4,432 5,075 Reserves (1) 960 1,200 Accrued Tariffs 1,224 1,167 Other 2,379 2,913 Total accrued liabilities $ 12,739 $ 15,575 (1) Reserves primarily consists of inventory, sales return, sales tax and product liability reserves. |
Product Warranties (Tables)
Product Warranties (Tables) | 3 Months Ended |
Jun. 30, 2023 | |
Product Warranties Disclosures [Abstract] | |
Schedule of Product Warranty Liability | Changes in our product warranty obligations were as follows (in thousands): Three-Months Ended June 30, 2023 2022 Balance, beginning of period $ 3,267 $ 6,216 Accruals 1,404 844 Payments (1,372) (2,064) Balance, end of period $ 3,299 $ 4,996 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tables) | 3 Months Ended |
Jun. 30, 2023 | |
Equity [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) | The following tables set forth the changes in accumulated other comprehensive loss, net of tax (in thousands): Foreign Currency Translation Adjustments Accumulated Other Comprehensive Loss Balance, March 31, 2023 $ (1,478) $ (1,478) Current period other comprehensive income before reclassifications 178 178 Balance, June 30, 2023 $ (1,300) $ (1,300) Foreign Currency Translation Adjustments Accumulated Other Comprehensive Loss Balance, March 31, 2022 $ (527) $ (527) Current period other comprehensive income before reclassifications (859) (859) Balance, June 30, 2022 $ (1,386) $ (1,386) |
Loss Per Share (Tables)
Loss Per Share (Tables) | 3 Months Ended |
Jun. 30, 2023 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | The weighted average numbers of shares outstanding used to compute (loss) income per share were as follows (in thousands): Three-Months Ended June 30, 2023 2022 Shares used to calculate basic income per share 32,355 31,405 Dilutive effect of outstanding stock options, performance stock units and restricted stock units — — Shares used to calculate diluted income per share 32,355 31,405 |
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share | The weighted average number of potentially dilutive shares outstanding were as follows (in thousands): Three-Months Ended June 30, 2023 2022 Stock options — 156 RSUs 48 296 PSUs — 24 Total potentially dilutive shares excluded due to net loss 48 476 Three-Months Ended June 30, 2023 2022 Restricted stock units 944 1,576 Stock options 1,805 2 Total anti-dilutive shares excluded 2,749 1,578 |
Segment and Enterprise-wide I_2
Segment and Enterprise-wide Information (Tables) | 3 Months Ended |
Jun. 30, 2023 | |
Segment Reporting [Abstract] | |
Summary Information by Reportable Segments | Following is summary information by reportable segment (in thousands): Three-Months Ended June 30, 2023 2022 Net sales: Direct $ 21,846 $ 26,476 Retail 19,477 27,444 Royalty 427 897 Consolidated net sales $ 41,750 $ 54,817 Contribution: Direct $ (4,708) $ (9,893) Retail 382 (5,408) Royalty 427 897 Consolidated contribution $ (3,899) $ (14,404) Reconciliation of consolidated contribution to loss from continuing operations: Consolidated contribution $ (3,899) $ (14,404) Amounts not directly related to segments: Operating expenses (1) (6,634) (36,781) Other expense, net 6,114 (889) Income tax expense (505) (8,096) Loss from continuing operations $ (4,924) $ (60,170) (1) Included in unallocated Operating expenses for the three months ended June 30, 2022 is $25.4 million of Goodwill and intangible impairment charge related to the Direct segment and $1.6 million of intangible impairment charge related to the Retail segment that is not included in the contribution performance measured by the chief operating decision maker. As of June 30, 2023 March 31, 2023 Assets: Direct $ 43,164 $ 50,493 Retail 39,367 58,214 Unallocated corporate 57,650 54,825 Total assets $ 140,181 $ 163,532 |
Schedules of Concentration of Risk, by Risk Factor | The following customer accounted for 10% or more of total net sales as follows: Three-Months Ended June 30, 2023 2022 Amazon.com 11.2% 29.4% |
General Information (Details)
General Information (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Mar. 31, 2023 | Jun. 30, 2022 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||
Restricted cash | $ 954 | $ 950 | $ 1,339 |
Restructuring and Exit Charge_2
Restructuring and Exit Charges (Details) $ in Thousands | 3 Months Ended |
Jun. 30, 2023 USD ($) | |
Restructuring Reserve [Roll Forward] | |
Accrued liability as of March 31, 2023 | $ 1,233 |
Charges / Accruals | 440 |
Payments | (1,028) |
Accrued liability as of June 30, 2023 | 645 |
Employee Severance and Benefits | |
Restructuring Reserve [Roll Forward] | |
Accrued liability as of March 31, 2023 | 1,110 |
Charges / Accruals | 0 |
Payments | (588) |
Accrued liability as of June 30, 2023 | 522 |
Third Party Costs | |
Restructuring Reserve [Roll Forward] | |
Accrued liability as of March 31, 2023 | 123 |
Charges / Accruals | 440 |
Payments | (440) |
Accrued liability as of June 30, 2023 | $ 123 |
Revenues (Details)
Revenues (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Change In Contract With Customer Liability [Roll Forward] | ||
Balance, beginning of period | $ 5,075 | $ 6,285 |
Cash additions | 387 | 1,549 |
Contract With Customer, Liability, Increase From Deferred Revenue | 978 | 982 |
Revenue recognition | (2,008) | (2,234) |
Balance, end of period | 4,432 | 6,582 |
Net sales | 41,750 | 54,817 |
United States | ||
Change In Contract With Customer Liability [Roll Forward] | ||
Net sales | 32,220 | 46,081 |
Canada | ||
Change In Contract With Customer Liability [Roll Forward] | ||
Net sales | 4,448 | 5,807 |
Europe, the Middle East and Africa | ||
Change In Contract With Customer Liability [Roll Forward] | ||
Net sales | 4,356 | 1,839 |
All other | ||
Change In Contract With Customer Liability [Roll Forward] | ||
Net sales | 726 | 1,090 |
Product sales | ||
Change In Contract With Customer Liability [Roll Forward] | ||
Net sales | 36,771 | 49,596 |
Extended warranties and services | ||
Change In Contract With Customer Liability [Roll Forward] | ||
Net sales | 750 | 1,042 |
Other | ||
Change In Contract With Customer Liability [Roll Forward] | ||
Net sales | 3,802 | 3,300 |
Royalty Income | ||
Change In Contract With Customer Liability [Roll Forward] | ||
Net sales | $ 427 | $ 879 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - Fair Value, Measurements, Recurring - USD ($) $ in Thousands | Jun. 30, 2023 | Mar. 31, 2023 |
Derivatives | ||
Total liabilities measured at fair value | $ 3,135 | $ 141 |
Level 1 | ||
Derivatives | ||
Total liabilities measured at fair value | 0 | 0 |
Level 2 | ||
Derivatives | ||
Total liabilities measured at fair value | 141 | 141 |
Level 3 | ||
Derivatives | ||
Total liabilities measured at fair value | 2,994 | 0 |
Foreign currency forward contracts | ||
Liabilities: | ||
Common Warrants | 2,994 | |
Derivatives | ||
Foreign currency forward contracts | 141 | 141 |
Foreign currency forward contracts | Level 1 | ||
Liabilities: | ||
Common Warrants | 0 | |
Derivatives | ||
Foreign currency forward contracts | 0 | 0 |
Foreign currency forward contracts | Level 2 | ||
Liabilities: | ||
Common Warrants | 0 | |
Derivatives | ||
Foreign currency forward contracts | 141 | 141 |
Foreign currency forward contracts | Level 3 | ||
Liabilities: | ||
Common Warrants | 2,994 | |
Derivatives | ||
Foreign currency forward contracts | $ 0 | $ 0 |
Fair Value Measurements - Sched
Fair Value Measurements - Schedule of Unobservable Inputs (Details) | Jun. 30, 2023 |
Stock Price | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Outstanding warrant, measurement input | 1.22 |
Exercise Price | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Outstanding warrant, measurement input | 1.35 |
Expected Life | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Outstanding warrant, measurement input | 5.47 |
Expected Volatility | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Outstanding warrant, measurement input | 0.6305 |
Expected Dividend Yield | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Outstanding warrant, measurement input | 0 |
Risk Free Rate | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Outstanding warrant, measurement input | 0.0405 |
Derivatives - Narrative (Detail
Derivatives - Narrative (Details) - Foreign currency forward contracts $ in Millions | 3 Months Ended |
Jun. 30, 2023 USD ($) | |
Derivative [Line Items] | |
Derivative, notional amount | $ 7.2 |
Derivative, term of contract | 126 days |
Derivatives - Fair value of der
Derivatives - Fair value of derivative instruments (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Mar. 31, 2023 |
Foreign currency forward contracts | Derivative instruments not designated as cash flow hedges: | Accrued liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of liability derivatives | $ 141 | $ 141 |
Derivatives - Effect On Condens
Derivatives - Effect On Condensed Consolidated Statements of Operations (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Other, net | Other, net |
Not Designated as Hedging Instruments | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Loss recognized in earnings | $ 0 | $ (96) |
Not Designated as Hedging Instruments | Income tax expense | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Income tax benefit | $ 0 | $ (24) |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Mar. 31, 2023 |
Inventory Disclosure [Abstract] | ||
Finished goods | $ 35,921 | $ 42,463 |
Parts and components | 3,870 | 4,136 |
Total inventories | $ 39,791 | $ 46,599 |
Property, Plant and Equipment (
Property, Plant and Equipment (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Mar. 31, 2023 |
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 82,613 | $ 81,720 |
Accumulated depreciation | (52,111) | (48,931) |
Total property, plant and equipment, net | 30,502 | 32,789 |
Automobiles | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 23 | 23 |
Automobiles | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Estimated Useful Life (in years) | 5 years | |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 3,446 | 3,426 |
Leasehold improvements | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Estimated Useful Life (in years) | 4 years | |
Leasehold improvements | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Estimated Useful Life (in years) | 20 years | |
Computer software and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 57,213 | 57,223 |
Computer software and equipment | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Estimated Useful Life (in years) | 2 years | |
Computer software and equipment | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Estimated Useful Life (in years) | 7 years | |
Machinery and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 14,953 | 14,953 |
Machinery and equipment | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Estimated Useful Life (in years) | 3 years | |
Machinery and equipment | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Estimated Useful Life (in years) | 5 years | |
Furniture and fixtures | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 2,034 | 2,034 |
Furniture and fixtures | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Estimated Useful Life (in years) | 5 years | |
Furniture and fixtures | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Estimated Useful Life (in years) | 20 years | |
Work in Progress | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 4,944 | $ 4,061 |
Property, Plant and Equipment -
Property, Plant and Equipment - Depreciation Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Property, Plant and Equipment [Abstract] | ||
Depreciation | $ 3,135 | $ 2,291 |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Mar. 31, 2023 | |
Goodwill [Line Items] | |||
Indefinite-lived trademarks | $ 2,900 | $ 6,597 | |
Total other intangible assets, gross | 3,944 | 7,640 | |
Accumulated amortization - definite-lived intangible assets | (869) | (853) | |
Other intangible assets, net | 3,075 | 6,787 | |
Proceeds from sale of indefinite-lived intellectual property | 10,500 | $ 0 | |
Carrying value of intangible assets sold | 3,700 | ||
Impairment of intangible assets, indefinite-lived (excluding goodwill) | 2,500 | ||
Patents | |||
Goodwill [Line Items] | |||
Finite-lived intangible assets, gross | $ 1,044 | $ 1,043 | |
Patents | Minimum | |||
Goodwill [Line Items] | |||
Estimated Useful Life (in years) | 7 years | ||
Patents | Maximum | |||
Goodwill [Line Items] | |||
Estimated Useful Life (in years) | 24 years |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets - Patent amortization (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Amortization expense | $ 15 | $ 15 |
Goodwill and Other Intangible_5
Goodwill and Other Intangible Assets - Future intangible amortization (Details) $ in Thousands | Jun. 30, 2023 USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Remainder of fiscal 2024 | $ 46 |
2025 | 61 |
2026 | 47 |
2027 | 3 |
2028 | 3 |
Thereafter | 15 |
Finite-Lived Intangible Assets, Net | $ 175 |
The Sale of Shares In Equity _2
The Sale of Shares In Equity Investments (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
May 01, 2023 | Jun. 30, 2023 | Jun. 30, 2022 | |
Equity Method Investments and Joint Ventures [Abstract] | |||
Proceeds from Sale of Equity Method Investments | $ 2,300 | $ 2,350 | $ 0 |
Equity Method Investments | 0 | ||
Equity Method Investment, Aggregate Cost | $ 100 | ||
Equity Method Investment, Realized Gain (Loss) on Disposal | $ 2,200 |
Leases - Additional information
Leases - Additional information (Details) | Jun. 30, 2023 term |
Leases [Abstract] | |
Operating lease, term of contract | 7 years |
Operating lease, number of renewal terms | 1 |
Operating lease, renewal term | 5 years |
Leases - Lease Cost (Details)
Leases - Lease Cost (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Leases [Abstract] | ||
Operating lease expense | $ 1,334 | $ 1,533 |
Amortization of finance lease assets | 28 | 28 |
Total lease expense | $ 1,362 | $ 1,561 |
Leases - Supplemental Cash Flow
Leases - Supplemental Cash Flow (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Mar. 31, 2022 | Mar. 31, 2023 | |
Leases [Abstract] | ||||
Operating lease right-of-use-assets | $ 18,009 | $ 19,078 | ||
Operating lease liabilities, non-current | 15,182 | 16,380 | ||
Operating lease liabilities, current portion | 4,505 | 4,427 | ||
Total lease liabilities | 19,687 | 20,807 | ||
Property, plant and equipment, at cost | 569 | 569 | ||
Accumulated depreciation | (199) | (171) | ||
Property, plant and equipment, net | 370 | 398 | ||
Finance lease obligations, non-current | 254 | 282 | ||
Finance lease obligations, current portion | 123 | 122 | ||
Total finance lease liabilities | 377 | $ 404 | ||
Operating cash flow from operating leases | 1,594 | $ 6,226 | ||
Finance cash flows from finance leases | 30 | $ 30 | 119 | |
ROU assets obtained in exchange for operating lease obligations | 0 | 100 | ||
ROU assets obtained in exchange for finance lease obligations | 0 | 0 | ||
Reductions to ROU assets resulting from reductions to operating lease obligations | $ 260 | $ 1,175 | ||
Operating leases, Weighted Average Remaining Lease Term | 4 years 9 months 18 days | 5 years | ||
Finance leases, Weighted Average Remaining Lease Term | 3 years 3 months 18 days | 3 years 6 months | ||
Operating leases, Weighted Average Discount Rate, Percent | 5.05% | 5.05% | ||
Finance leases, Weighted Average Discount Rate, Percent | 2.08% | 2.08% |
Leases - Maturity (Details)
Leases - Maturity (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Mar. 31, 2023 |
Operating leases | ||
2024 | $ 3,992 | |
2025 | 5,650 | |
2026 | 4,525 | |
2027 | 2,365 | |
Thereafter | 5,796 | |
Total undiscounted lease payments | 22,328 | |
Less imputed interest | (2,641) | |
Total lease liabilities | 19,687 | $ 20,807 |
Finance leases | ||
2024 | 90 | |
2025 | 120 | |
2026 | 120 | |
2027 | 60 | |
Thereafter | 0 | |
Total undiscounted lease payments | 390 | |
Less imputed interest | (13) | |
Total finance lease liabilities | $ 377 | $ 404 |
Capital Stock (Details)
Capital Stock (Details) $ / shares in Units, $ in Thousands | Jun. 15, 2023 USD ($) $ / shares shares |
Class of Stock [Line Items] | |
Maximum cost reimbursement | $ | $ 75 |
Private Placement One | |
Class of Stock [Line Items] | |
Number of shares issued in transaction (in shares) | shares | 3,525,000 |
Exercise price of warrants (in dollars per share) | $ 0.0001 |
Offer price per warrant for exchange | 1.22 |
Offering price for pre-funded warrant (in dollars per share) | $ 1.2199 |
Number of shares of common stock called by warrants | shares | 573,362 |
Private Placement One | Minimum | |
Class of Stock [Line Items] | |
Excess of ownership percentage | 4.99% |
Private Placement One | Maximum | |
Class of Stock [Line Items] | |
Excess of ownership percentage | 9.99% |
Private Placement Two | |
Class of Stock [Line Items] | |
Exercise price of warrants (in dollars per share) | $ 1.35 |
Number of shares of common stock called by warrants | shares | 4,098,362 |
Stock issuance fee percentage | 7% |
Consideration received on issuance | $ | $ 4,600 |
Amount of stock issuance costs | $ | $ 400 |
Capital Stock - Warrant Liabili
Capital Stock - Warrant Liability Rollforward (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning liability balance | $ 0 | $ 0 |
Issuance of common stock warrant liability | 2,994 | 0 |
Ending liability balance | $ 2,994 | $ 0 |
Accrued Liabilities (Details)
Accrued Liabilities (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Mar. 31, 2023 |
Payables and Accruals [Abstract] | ||
Payroll and related liabilities | $ 3,744 | $ 5,220 |
Deferred revenue | 4,432 | 5,075 |
Reserves | 960 | 1,200 |
Accrued Tariffs, Current | 1,224 | 1,167 |
Other | 2,379 | 2,913 |
Total accrued liabilities | $ 12,739 | $ 15,575 |
Product Warranties (Details)
Product Warranties (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Movement in Product Warranty Liability [Roll Forward] | ||
Balance, beginning of period | $ 3,267 | $ 6,216 |
Accruals | 1,404 | 844 |
Payments | (1,372) | (2,064) |
Balance, end of period | $ 3,299 | $ 4,996 |
Minimum | ||
Product Liability Contingency [Line Items] | ||
Product warranty period | 30 days |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning balance | $ 61,300 | $ 164,049 |
Current period other comprehensive income (loss) before reclassifications | 178 | (859) |
Ending balance | 59,071 | 104,847 |
Foreign Currency Translation Adjustments | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning balance | (1,478) | (527) |
Current period other comprehensive income (loss) before reclassifications | 178 | (859) |
Ending balance | (1,300) | (1,386) |
Accumulated Other Comprehensive Loss | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning balance | (1,478) | (527) |
Ending balance | $ (1,300) | $ (1,386) |
Loss Per Share - Weighted Avera
Loss Per Share - Weighted Average Number of Shares (Details) - shares shares in Thousands | 3 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Earnings Per Share [Abstract] | ||
Basic (in shares) | 32,355 | 31,405 |
Dilutive effect of outstanding stock options, performance stock units and restricted stock units (in shares) | 0 | 0 |
Shares used to calculate diluted income per share (in shares) | 32,355 | 31,405 |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Anti-dilutive securities excluded from computation of diluted income per share (in shares) | 48 | 476 |
Stock options | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Anti-dilutive securities excluded from computation of diluted income per share (in shares) | 0 | 156 |
Restricted stock units | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Anti-dilutive securities excluded from computation of diluted income per share (in shares) | 48 | 296 |
PSUs | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Anti-dilutive securities excluded from computation of diluted income per share (in shares) | 0 | 24 |
Loss Per Share - Anti-dilutive
Loss Per Share - Anti-dilutive Common Shares (Details) - shares shares in Thousands | 3 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Anti-dilutive securities excluded from computation of diluted income per share (in shares) | 2,749 | 1,578 |
Stock options | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Anti-dilutive securities excluded from computation of diluted income per share (in shares) | 944 | 1,576 |
Restricted stock units | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Anti-dilutive securities excluded from computation of diluted income per share (in shares) | 1,805 | 2 |
Segment and Enterprise-wide I_3
Segment and Enterprise-wide Information (Details) $ in Thousands | 3 Months Ended | ||
Jun. 30, 2023 USD ($) segment | Jun. 30, 2022 USD ($) | Mar. 31, 2023 USD ($) | |
Segment Reporting Information [Line Items] | |||
Number of operating segments | segment | 2 | ||
Net sales | $ 41,750 | $ 54,817 | |
Contribution | (3,899) | (14,404) | |
Reconciliation of consolidated contribution to income (loss) from continuing operations: | |||
Operating expenses | (19,182) | (58,142) | |
Income tax expense | (505) | (8,096) | |
Loss from continuing operations | (4,924) | (60,170) | |
Assets | 140,181 | $ 163,532 | |
Direct | |||
Reconciliation of consolidated contribution to income (loss) from continuing operations: | |||
Asset impairment charge | 25,400 | ||
Retail | |||
Reconciliation of consolidated contribution to income (loss) from continuing operations: | |||
Asset impairment charge | 1,600 | ||
Unallocated corporate | |||
Reconciliation of consolidated contribution to income (loss) from continuing operations: | |||
Assets | 57,650 | 54,825 | |
Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Net sales | 41,750 | 54,817 | |
Contribution | (3,899) | (14,404) | |
Operating Segments | Royalty | |||
Segment Reporting Information [Line Items] | |||
Net sales | 427 | 897 | |
Unallocated royalty income, net | 427 | 897 | |
Operating Segments | Direct | |||
Segment Reporting Information [Line Items] | |||
Net sales | 21,846 | 26,476 | |
Contribution | (4,708) | (9,893) | |
Reconciliation of consolidated contribution to income (loss) from continuing operations: | |||
Assets | 43,164 | 50,493 | |
Operating Segments | Retail | |||
Segment Reporting Information [Line Items] | |||
Net sales | 19,477 | 27,444 | |
Contribution | 382 | (5,408) | |
Reconciliation of consolidated contribution to income (loss) from continuing operations: | |||
Assets | 39,367 | $ 58,214 | |
Corporate, Non-Segment | |||
Reconciliation of consolidated contribution to income (loss) from continuing operations: | |||
Operating expenses | (6,634) | (36,781) | |
Other expense, net | 6,114 | (889) | |
Income tax expense | $ (505) | $ (8,096) |
Segment and Enterprise-wide I_4
Segment and Enterprise-wide Information - Concentration (Details) | 3 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Amazon.com | Sales Revenue, Net | Customer Concentration Risk | ||
Concentration Risk [Line Items] | ||
Concentration risk, percentage | 11.20% | 29.40% |
Borrowings (Loan Agreement) (De
Borrowings (Loan Agreement) (Details) - USD ($) | 3 Months Ended | |||||
Apr. 25, 2023 | Nov. 30, 2022 | Nov. 29, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Apr. 24, 2023 | |
Line of Credit Facility [Line Items] | ||||||
Loss on debt extinguishment | $ 352,000 | $ 0 | ||||
SLR Credit Agreement | ||||||
Line of Credit Facility [Line Items] | ||||||
Loss on debt extinguishment | 900,000 | |||||
WF Credit Facility | ||||||
Line of Credit Facility [Line Items] | ||||||
Loss on debt extinguishment | 600,000 | |||||
Line of Credit | SLR Credit Agreement | ||||||
Line of Credit Facility [Line Items] | ||||||
Minimum excess availability | $ 10,000,000 | |||||
Percentage of line cap | 12.50% | |||||
Repayments of Debt | $ 11,800,000 | |||||
Maximum revolving secured credit line | 60,000,000 | $ 100,000,000 | ||||
Line of Credit | SLR Credit Agreement | Triggering Event One | ||||||
Line of Credit Facility [Line Items] | ||||||
Minimum excess availability | 9,000,000 | |||||
Line of Credit | SLR Credit Agreement | Triggering Event Two | ||||||
Line of Credit Facility [Line Items] | ||||||
Minimum excess availability | $ 7,000,000 | |||||
Line of Credit | Wells Fargo Bank | ||||||
Line of Credit Facility [Line Items] | ||||||
Amount outstanding | 17,300,000 | |||||
Line of Credit | Wells Fargo Bank | ABL Revolving Credit Facility | ||||||
Line of Credit Facility [Line Items] | ||||||
Available for borrowing under line of credit | $ 9,500,000 | |||||
Borrowing rate under agreement, at period end | 10.28% | |||||
Line of Credit | Wells Fargo Bank | Term Loan | ||||||
Line of Credit Facility [Line Items] | ||||||
Borrowing rate under agreement, at period end | 13.79% | |||||
Line of Credit | Wells Fargo Bank | Term Loan | SLR Credit Agreement | ||||||
Line of Credit Facility [Line Items] | ||||||
Amount outstanding | $ 17,100,000 | |||||
Line of Credit | Wells Fargo Bank | Term Loan | WF Credit Facility | ||||||
Line of Credit Facility [Line Items] | ||||||
Amount outstanding | $ 200,000 | |||||
Minimum | Line of Credit | WF Credit Facility | Variable Rate Component One | ||||||
Line of Credit Facility [Line Items] | ||||||
Basis spread on variable rate | 5% | |||||
Minimum | Line of Credit | Secured Debt | Secured Overnight Financing Rate (SOFR) | SLR Credit Agreement | Variable Rate Component One | ||||||
Line of Credit Facility [Line Items] | ||||||
Basis spread on variable rate | 7.75% | |||||
Maximum | Line of Credit | WF Credit Facility | Variable Rate Component One | ||||||
Line of Credit Facility [Line Items] | ||||||
Basis spread on variable rate | 5.50% | |||||
Maximum | Line of Credit | Secured Debt | Secured Overnight Financing Rate (SOFR) | SLR Credit Agreement | Variable Rate Component One | ||||||
Line of Credit Facility [Line Items] | ||||||
Basis spread on variable rate | 8.25% |
Commitments and Contingencies (
Commitments and Contingencies (Details) - USD ($) $ in Millions | Jun. 30, 2023 | Mar. 31, 2023 |
Purchase Commitment, Excluding Long-term Commitment [Line Items] | ||
Standby letters of credit outstanding | $ 1.6 | |
Inventories | ||
Purchase Commitment, Excluding Long-term Commitment [Line Items] | ||
Non-cancelable market-based purchase obligation | $ 33 | $ 12.1 |
Subsequent Events (Details)
Subsequent Events (Details) - USD ($) | Jun. 15, 2023 | Jul. 28, 2023 | Jul. 27, 2023 | Apr. 25, 2023 | Apr. 24, 2023 |
SLR Credit Agreement | Line of Credit | |||||
Subsequent Event [Line Items] | |||||
Maximum revolving secured credit line | $ 60,000,000 | $ 100,000,000 | |||
Private Placement One | |||||
Subsequent Event [Line Items] | |||||
Number of shares issued in transaction (in shares) | 3,525,000 | ||||
Number of shares of common stock called by warrants | 573,362 | ||||
Subsequent Event | SLR Credit Agreement | Line of Credit | |||||
Subsequent Event [Line Items] | |||||
Maximum revolving secured credit line | $ 40,000,000 | $ 60,000,000 |