Other Assets |
9 Months Ended |
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Sep. 30, 2024 | |
| Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
| Other Assets |
Other Assets During the third quarter of 2023, we entered into a contract whereby we agreed to exchange finished goods inventory for prepaid advertising which must be used within four years from the contract date, for a stated contract price of $41,565. During the first quarter of 2024, we entered into amendments to the contract under the same terms for an incremental stated contract price of $6,735. We measured the noncash consideration using the standalone selling price of finished goods sold to distributors, which was 84% of the stated contract price.
During the third quarter of 2024, we agreed to exchange additional finished goods inventory for prepaid advertising for a stated contract price of $4,420. Using the standalone selling price of finished goods sold to wholesale customers, the contract value was reduced by approximately $539. Revenue and corresponding prepaid advertising is recognized based on the standalone selling price as the products are delivered. As of September 30, 2024 and December 31, 2023, we recognized $42,352 and $28,901 of other assets on our consolidated balance sheet, respectively. Based upon the period over which we expect to use these advertising credits, we concluded that $6,129 were current as of both September 30, 2024 and December 31, 2023, and have been recorded as prepaid and other current assets on our consolidated balance sheets, and $36,223 and $22,772 were non-current and have been recorded as other assets on our consolidated balance sheets as of September 30, 2024 and December 31, 2023 respectively. We recognized $3,316 and $15,220 of revenue for the three and nine months ended September 30, 2024, respectively, and we recognized $7,480 of revenue for both the three and nine months ended September 30, 2023, on our consolidated income statement related to shipments of inventory in exchange for prepaid advertising under these contracts.
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