0001564590-20-052585 | 10-Q | XBRL Viewer | Mohawk Group Holdings INC

Document and Entity Information - shares	9 Months Ended
Document and Entity Information - shares	Sep. 30, 2020	Nov. 02, 2020
Cover [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Sep. 30, 2020
Document Fiscal Year Focus	2020
Document Fiscal Period Focus	Q3
Entity Registrant Name	Mohawk Group Holdings, Inc.
Entity Central Index Key	0001757715
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Current Fiscal Year End Date	--12-31
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Shell Company	false
Entity Emerging Growth Company	true
Entity Ex Transition Period	false
Entity Common Stock, Shares Outstanding		21,844,944
Entity File Number	001-38937
Entity Tax Identification Number	83-1739858
Entity Address, Address Line One	37 East 18th Street
Entity Address, Address Line Two	7th Floor
Entity Address, City or Town	New York
Entity Address, State or Province	NY
Entity Address, Postal Zip Code	10003
City Area Code	347
Local Phone Number	676-1681
Entity Incorporation, State or Country Code	DE
Document Quarterly Report	true
Document Transition Report	false
Title of each class	Common Stock, $0.0001 par value per share
Trading Symbol(s)	MWK
Name of each exchange on which registered	NASDAQ

Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
CURRENT ASSETS:
Cash	$ 37,385	$ 30,353
Accounts receivable—net	8,516	1,059
Inventory	18,791	36,212
Prepaid and other current assets	7,343	5,395
Total current assets	72,035	73,019
PROPERTY AND EQUIPMENT—net	132	175
GOODWILL AND OTHER INTANGIBLES—net	16,700	1,055
OTHER NON-CURRENT ASSETS	174	175
TOTAL ASSETS	89,041	74,424
CURRENT LIABILITIES:
Credit facility	13,418	21,657
Accounts payable	14,538	21,064
Term loan	6,500	3,000
Accrued and other current liabilities	12,334	7,505
Total current liabilities	46,790	53,226
OTHER LIABILITIES	2,480	4
TERM LOANS	6,350	10,467
Total liabilities	55,620	63,697
COMMITMENTS AND CONTINGENCIES (Note 9)
STOCKHOLDERS’ EQUITY:
Common stock, par value $0.0001 per share—500,000,000 shares authorized and 17,736,649 shares outstanding at December 31, 2019; 500,000,000 shares authorized and 21,844,944 shares outstanding at September 30, 2020	2	2
Additional paid-in capital	181,971	140,477
Accumulated deficit	(148,581)	(129,809)
Accumulated other comprehensive income	29	57
Total stockholders’ equity	33,421	10,727
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$ 89,041	$ 74,424

Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares	Sep. 30, 2020	Dec. 31, 2019
Statement Of Financial Position [Abstract]
Common stock, par value	$ 0.0001	$ 0.0001
Common stock, shares authorized	500,000,000	500,000,000
Common stock, shares outstanding	21,844,944	17,736,649

Condensed Consolidated Statements of Operations (Unaudited) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Income Statement [Abstract]
NET REVENUE	$ 58,783	$ 40,603	$ 144,212	$ 88,817
COST OF GOODS SOLD	30,688	23,076	78,218	52,859
GROSS PROFIT	28,095	17,527	65,994	35,958
OPERATING EXPENSES:
Sales and distribution	18,944	18,111	51,472	41,094
Research and development	1,846	3,226	6,578	7,731
General and administrative	7,199	10,261	23,554	23,932
TOTAL OPERATING EXPENSES:	27,989	31,598	81,604	72,757
OPERATING INCOME (LOSS)	106	(14,071)	(15,610)	(36,799)
INTEREST EXPENSE—net	934	875	3,120	3,368
OTHER EXPENSE (INCOME)—net	(23)	21	(4)	53
LOSS BEFORE INCOME TAXES	(805)	(14,967)	(18,726)	(40,220)
PROVISION FOR INCOME TAXES		8	46	23
NET LOSS	$ (805)	$ (14,975)	$ (18,772)	$ (40,243)
Net loss per share, basic and diluted	$ (0.05)	$ (0.99)	$ (1.18)	$ (3.10)
Weighted-average number of shares outstanding, basic and diluted	17,090,050	15,134,422	15,903,517	12,971,641

Condensed Consolidated Statements of Comprehensive Loss (Unaudited) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Statement Of Income And Comprehensive Income [Abstract]
NET LOSS	$ (805)	$ (14,975)	$ (18,772)	$ (40,243)
OTHER COMPREHENSIVE INCOME (LOSS):
Foreign currency translation adjustments	(19)	13	(28)	26
Other comprehensive income (loss)	(19)	13	(28)	26
COMPREHENSIVE LOSS	$ (824)	$ (14,962)	$ (18,800)	$ (40,217)

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

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+ Details

Condensed Consolidated Statements of Stockholders' Equity (Unaudited) - USD ($) $ in Thousands	Total	Follow-on Public Offering	July 13, 2020	August 10, 2020	Common Stock	Common Stock Follow-on Public Offering	Common Stock August 2019	Common Stock July 13, 2020	Common Stock July 20, 2020	Common Stock September 30, 2020	Common Stock August 10, 2020	Common Stock March 20, 2019	Common Stock May 17, 2019	Common Stock June 12, 2019	Common Stock March 12, 2020	Common Stock June 30, 2020	Additional Paid-in Capital	Additional Paid-in Capital Follow-on Public Offering	Additional Paid-in Capital July 13, 2020	Additional Paid-in Capital August 10, 2020	Accumulated Deficit	Accumulated Other Comprehensive Income/(Loss)
Beginning balance at Dec. 31, 2018	$ 5,369				$ 1												$ 76,348				$ (71,020)	$ 40
Beginning balance, shares at Dec. 31, 2018					11,534,190
Net loss	(40,243)																				(40,243)
Issuance of restricted common stock, shares							84,975					2,406,618	19,407	64,982
Issuance of common stock, including underwriter's over-allotment, net of offering costs and underwriter's discount	29,607				$ 1												29,606
Issuance of common stock, including underwriter's over-allotment, net of offering costs and underwriter's discount, shares					3,600,000
Stock-based compensation	24,747																24,747
Exercise of stock options	$ 2																2
Exercise of stock options, shares	487				487
Other comprehensive income (loss)	$ 26																					26
Ending balance at Sep. 30, 2019	19,508				$ 2												130,703				(111,263)	66
Ending balance, shares at Sep. 30, 2019					17,710,659
Beginning balance at Jun. 30, 2019	23,115				$ 2												119,348				(96,288)	53
Beginning balance, shares at Jun. 30, 2019					17,625,241
Net loss	(14,975)																				(14,975)
Issuance costs from Initial Public Offering	(21)																(21)
Issuance of restricted common stock, shares							84,975
Stock-based compensation	11,374																11,374
Exercise of stock options	2																2
Exercise of stock options, shares					443
Other comprehensive income (loss)	13																					13
Ending balance at Sep. 30, 2019	19,508				$ 2												130,703				(111,263)	66
Ending balance, shares at Sep. 30, 2019					17,710,659
Beginning balance at Dec. 31, 2019	10,727				$ 2												140,477				(129,809)	57
Beginning balance, shares at Dec. 31, 2019					17,736,649
Net loss	(18,772)																				(18,772)
Issuance of restricted common stock			$ 49	$ 760															$ 49	$ 760
Issuance of restricted common stock, shares					22,700			10,000	95,500	22,700	90,000				439,145	134,364
Forfeiture of restricted common stock, shares															(371,329)	(134,366)
Issuance of common stock, including underwriter's over-allotment, net of offering costs and underwriter's discount		$ 23,416																$ 23,416
Issuance of common stock, including underwriter's over-allotment, net of offering costs and underwriter's discount, shares						3,860,710
Shares of restricted common stock retired in connection with vesting	(139)																(139)
Shares of restricted common stock retired in connection with vesting, shares					(41,299)
Issuance of 25,000 warrants on August 18, 2020	204																204
Stock-based compensation	17,192																17,192
Exercise of stock options	$ 12																12
Exercise of stock options, shares	2,870				2,870
Other comprehensive income (loss)	$ (28)																					(28)
Ending balance at Sep. 30, 2020	33,421				$ 2												181,971				(148,581)	29
Ending balance, shares at Sep. 30, 2020					21,844,944
Beginning balance at Jun. 30, 2020	5,222				$ 2												152,948				(147,776)	48
Beginning balance, shares at Jun. 30, 2020					17,763,164
Net loss	(805)																				(805)
Issuance of restricted common stock			$ 49	$ 760															$ 49	$ 760
Issuance of restricted common stock, shares					22,700			10,000	95,500	22,700	90,000
Issuance of common stock, including underwriter's over-allotment, net of offering costs and underwriter's discount		$ 23,416																$ 23,416
Issuance of common stock, including underwriter's over-allotment, net of offering costs and underwriter's discount, shares						3,860,710
Issuance of 25,000 warrants on August 18, 2020	204																204
Stock-based compensation	4,582																4,582
Exercise of stock options	12																12
Exercise of stock options, shares					2,870
Other comprehensive income (loss)	(19)																					(19)
Ending balance at Sep. 30, 2020	$ 33,421				$ 2												$ 181,971				$ (148,581)	$ 29
Ending balance, shares at Sep. 30, 2020					21,844,944

Condensed Consolidated Statements of Stockholders' Equity (Unaudited) (Parenthetical) - shares										1 Months Ended	3 Months Ended		9 Months Ended
	Aug. 26, 2020	Aug. 10, 2020	Jul. 20, 2020	Jul. 13, 2020	Mar. 12, 2020	Jun. 14, 2019	Jun. 12, 2019	May 17, 2019	Mar. 20, 2019	Aug. 31, 2019	Sep. 30, 2020	Jun. 30, 2020	Sep. 30, 2020	Sep. 30, 2019
Follow-on Public Offering
Issuance of common stock, including underwriter's over-allotment, net of offering costs and underwriter's discount, shares	3,860,710
Common Stock
Issuance of restricted common stock, shares		90,000	95,500	10,000	439,145		64,982	88,548	2,406,618	84,975	22,700	134,364	22,700
Restricted common stock, forfeitures					371,329			69,141				134,366
Issuance of common stock, including underwriter's over-allotment, net of offering costs and underwriter's discount, shares						3,600,000								3,600,000
Common Stock \| Follow-on Public Offering
Issuance of common stock, including underwriter's over-allotment, net of offering costs and underwriter's discount, shares											3,860,710		3,860,710

Condensed Consolidated Statements of Stockholders' Equity (Unaudited) (Parenthetical 1)	Aug. 18, 2020 shares
Warrant
Issuance of warrants	25,000

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019
OPERATING ACTIVITIES:
Net loss	$ (18,772)	$ (40,243)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	179	136
Provision for sales returns	77	236
Amortization of deferred financing costs and debt discounts	914	914
Stock-based compensation	17,472	24,747
Other	5	101
Changes in assets and liabilities:
Accounts receivable	(7,492)	(1,784)
Inventory	17,235	4,944
Prepaid and other current assets	(320)	(2,307)
Accounts payable, accrued and other liabilities	(1,698)	110
Cash (used in) provided by operating activities	7,600	(13,146)
INVESTING ACTIVITIES:
Purchase of fixed assets	(33)	(48)
Proceeds on sale of fixed assets		6
Cash used in investing activities	(14,065)	(1,147)
FINANCING ACTIVITIES:
Proceeds from exercise of stock options	12	2
Proceeds from initial public offering, net of issuance costs		30,554
Proceeds from issuance of common stock from follow-on public offering, net of issuance costs	23,416
Taxes paid related to net settlement upon vesting of restricted common stock	(112)
Borrowings from Mid Cap credit facility	99,508	69,740
Deferred offering costs	(139)
Insurance obligation payments	(2,357)	(1,818)
Insurance financing proceeds	2,660	3,833
Capital lease obligation payments	(4)	(42)
Cash provided by financing activities	13,499	29,706
EFFECT OF EXCHANGE RATE ON CASH	3	1
NET CHANGE IN CASH AND RESTRICTED CASH FOR PERIOD	7,037	15,414
CASH AND RESTRICTED CASH AT BEGINNING OF PERIOD	30,789	20,708
CASH AND RESTRICTED CASH AT END OF PERIOD	37,826	36,122
RECONCILIATION OF CASH AND RESTRICTED CASH
CASH	37,385	35,686
RESTRICTED CASH—Prepaid and other assets	312	307
RESTRICTED CASH—Other non-current assets	129	129
CASH AND RESTRICTED CASH AT END OF PERIOD	37,826	36,122
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION
Cash paid for interest	2,321	2,467
Cash paid for taxes	45	15
Non-cash consideration paid to contractors	1,013
Non-cash barter exchange of inventory for advertising credits	889
Horizon Term Loan
FINANCING ACTIVITIES:
Repayments of debt	(1,000)
Debt issuance costs		(900)
Mid Cap Credit Facility
FINANCING ACTIVITIES:
Repayments of debt	(108,278)	(71,082)
Debt issuance costs		(581)
Truweo Assets
INVESTING ACTIVITIES:
Purchase of fixed assets	(14,032)
NON-CASH INVESTING AND FINANCING ACTIVITIES:
Note payable on acquisition	2,455
Aussie Health
INVESTING ACTIVITIES:
Purchase of fixed assets		(1,105)
FINANCING ACTIVITIES:
Repayment of note payable related to Aussie Health acquisition	$ (207)
NON-CASH INVESTING AND FINANCING ACTIVITIES:
Note payable on acquisition		$ 195

Organization and Description of Business

9 Months Ended

Sep. 30, 2020

Organization Consolidation And Presentation Of Financial Statements [Abstract]

Organization and Description of Business

1.	ORGANIZATION AND DESCRIPTION OF BUSINESS

Mohawk Group Holdings, Inc. and subsidiaries (“Mohawk” or the “Company”) is a rapidly growing technology-enabled consumer products company that uses machine learning and data analytics to design, develop, market and sell products. Mohawk predominately operates through online retail channels such as Amazon.com, Inc. (“Amazon”) and Walmart, Inc.

Headquartered in New York, Mohawk’s offices can be found in China, Philippines, Israel and Poland.

Follow-on Equity Offering

On August 26, 2020 the Company completed an underwritten public offering (the “Follow-On Offering”) of 3,860,710 shares of common stock, which includes the exercise by the underwriters of their option to purchase additional shares of common stock solely to cover over-allotments, at a public offering price of $7.00 per share, less underwriting discounts and commissions. The Company received net proceeds of approximately $23.4 million after deducting underwriting discounts and commissions of approximately $2.2 million and other offering expenses payable by the Company of approximately $1.4 million.

Truweo Acquisition

On August 26, 2020 the Company completed the acquisition of the assets of a leading ecommerce brand in the health and personal wellness category (the “Truweo Assets”) for total consideration of $16.4 million which was comprised of cash of $14.0 million and an unsecured promissory note for $2.4 million. The unsecured promissory note accrues interest at a rate of 8% per annum, with $0.6 million principal and accrued interest payments due on November 30, 2021, February 28, 2022 and May 31, 2022, and matures on August 22, 2022 (See Note 10 - Acquisition).

Liquidity and Going Concern—The Company is an early-stage growth company. Accordingly, the Company endeavors to continuously invest in the launch of new products, the development of its software, and the expansion of its sales and distribution infrastructure in order to accelerate revenue growth and scale operations to support such growth. To fund these investments, the Company has historically obtained financing and raised capital since its inception with the expectation that the Company will generate profits in the future. The Company intends to continue to its strategy of investing in growth by launching new products, developing its software and expanding its sales and distribution operations for the foreseeable future.

As a result of its historical investments, the Company has incurred operating losses since its inception, which includes operating losses of $54.3 million and $15.6 million for the year ended December 31, 2019 and the nine months ended September 30, 2020, respectively, and had an accumulated deficit of $129.8 million and $148.6 million at December 31, 2019 and September 30, 2020, respectively, cash on hand of $30.4 million and $37.4 million at December 31, 2019 and September 30, 2020, respectively, total outstanding borrowings from lenders of $35.1 million and $28.7 million at December 31, 2019 and September 30, 2020, respectively, and no available capacity on borrowings as of December 31, 2019 and September 30, 2020. The Company has raised $125.4 million in equity financing to fund its operations since inception, including the net proceeds from the Company’s initial public offering of common stock (“IPO”), and the Follow-On Offering, through September 30, 2020.

During the Company’s review of the September 30, 2020 condensed consolidated financial statements, the Company’s financial forecast for the next 12 months following the filing date of this Quarterly Report on Form 10-Q included projected revenue growth, margin expansion, a reduction of certain fixed costs, an improvement in inventory management and a reduction in operating cash deficit. In addition, management anticipated that the Company would not breach its financial covenants associated with its existing credit facility or term loan for the next twelve months. Currently, the Company has met or exceeded its forecasts over the past three quarters and in August 2020 raised $23.4 million in equity financing earmarked to acquire, invest in or license complementary products, technologies or businesses. On August 26, 2020, the Company completed the acquisition of the Truweo Assets for $16.4 million, of which $2.4 million was in an unsecured promissory note (See Note 10 - Acquisition). However, due the Company’s short operating history, its short history of meeting and exceeding its forecast and its strategy of investing in growth, there are no assurances that the Company will continue to meet or exceed forecast or that it will be able to maintain sufficient liquidity to fund operations and/or compliance with its covenants without future equity investments or issuance of debt from outside sources. In the event of a breach of the Company’s financial covenants under the credit facility and/or its term loan, outstanding borrowings would become due on demand absent a waiver from the lenders.

In addition, while the Company anticipates it will remain in compliance with the covenants prescribed by its existing financing arrangements (See Note 6 – Credit Facility and Term Loans), there can be no assurance that the Company’s operating forecast and cash flows for the twelve months following the issuance of the accompanying condensed consolidated financial statements, will be attained such that the Company will be able to maintain compliance with these covenants or generate sufficient liquidity to fund its ongoing operations. The Company’s short operating history of meeting and exceeding its forecasts, the COVID-19 pandemic (see below), its current strategy of investing in growth and these negative financial conditions raise substantial doubt about the Company’s ability to continue as a going concern as of September 30, 2020.

These condensed consolidated financial statements have been prepared on the basis that the Company will continue to operate as a going concern and as such, include no adjustments that might be necessary in the event that the Company was unable to operate on this basis.

Management plans to continue to closely monitor its operating forecast and cash flows, and may pursue additional sources of financing and/or capital to fund its operations, if necessary. If the Company is unable to improve its operating results, increase its operating cash inflows, and/or obtain additional sources of financing and capital on acceptable terms (if at all), the Company may have to make significant changes to its operating plan, such as delay expenditures, reduce investments in new products, delay the development of its software, reduce its sale and distribution infrastructure, or otherwise significantly reduce the scope of its business. The accompanying condensed consolidated financial statements do not include any adjustments that might result from the outcome of this uncertainty.

COVID-19 Pandemic

On January 30, 2020, the World Health Organization (the “WHO”) announced a global health emergency because of a new strain of coronavirus (“COVID-19”) originating in Wuhan, China and the risks to the international community as the virus spreads globally beyond its point of origin. In March 2020, the WHO classified COVID-19 as a pandemic, based on the rapid increase in exposure globally. The full impact of the COVID-19 pandemic, including the impact associated with preventative and precautionary measures that the Company, other businesses and governments are taking, continues to evolve as of the date of this report. As such, the future impact on the Company’s personnel, business and global operations, and on the Company’s suppliers, logistics providers, marketplaces and other business partners is uncertain and cannot be reasonably estimated at this time. Given the nature of the COVID-19 pandemic, it is possible that any and every aspect of the Company’s value chain could be disrupted, and such impact could have a material adverse impact on the Company’s business, financial condition, operating results and prospects. For example, the Company may be unable to launch new products, replenish inventory for existing products, ship into or receive inventory in its third-party warehouses, or ship or sell products to customers, in each case on a timely basis or at all. The Company may also be unable to forecast demand for its products during the pendency of this pandemic and the Company may experience a substantial decrease in the demand for its products, most of which are considered not essential. In addition, the majority of the Company’s personnel are currently working remotely, which creates challenges in the way the Company operates its business, including, but not limited to, the manner in which the Company tests products and its ability to meet its reporting obligations. The Company’s ability to execute its operations could be further impacted if any of the Company’s key personnel contracts COVID-19. While the potential economic impact brought by, and the duration of, COVID-19 may be difficult to assess or predict, the continued widespread pandemic could result in significant disruption of global financial markets, reducing the Company’s ability to access capital, which could in the future negatively affect its liquidity. Due to the uncertainty as to the severity and duration of the pandemic, the impact on the Company’s future revenues, profitability, liquidity, financial condition, business and results of operations is uncertain at this time.

While the Company has been preserving its liquidity and capital resources through various actions, which have included delaying and negotiating the delay of payments to certain vendors, the effect of such actions could have an adverse impact on the Company’s business, including its relationships with these vendors. The Company’s operations rely on third-parties to manufacture its products, to provide logistics and warehousing services and to facilitate sales of its products, and, accordingly, the Company relies on the business continuity plans of these third parties to operate during the pandemic and have limited ability to influence their plans. In light of the uncertainty as to the severity and duration of the COVID-19 pandemic, the Company may be unable to remain in compliance with the terms of its existing loan agreements and may be unable to secure a waiver, which could have an adverse impact on the Company’s business, prospects and financial condition and the Company may seek additional financing options. The Company expects that any financing, if successful, will be expensive and/or dilutive.

The COVID-19 pandemic began to have an unfavorable impact on the Company, including its key manufacturing partners, in January 2020. Substantially all of the Company’s products are sourced and manufactured in China, including new products that it expects to launch during 2020. In addition, the Company relies upon its team in Shenzhen for a number of functions relating to product sourcing and development, among other things. The Company has a key manufacturing partner in China that re-opened its facilities as of February 10, 2020 and reached over 90% capacity early in March 2020. This key manufacturer is expected to manufacture over 30% of the Company’s inventory in 2020.

To date the Company has had few overall negative impacts to its business and operations from the COVID-19 pandemic. As reported, the Company has seen 45% growth in its net revenue for the three months ended September 30, 2020 versus the same quarter in the prior year. The shift of consumer spending from traditional retail to online spending has increased dramatically due to the COVID-19 pandemic. This has benefited the Company as historically over 90% of its net revenue comes from the sale of products online in the U.S. and it believes this shift to increased online consumer spending will continue even after the COVID-19 pandemic ends. The Company’s investments in its infrastructure and software and the expansion of its third party warehousing network have also allowed the Company to continue to deliver its products, even when Amazon itself limited its delivery services. The Company has had no material impacts to its vendor or other business relationships to date and in certain circumstances it has been able to negotiate improved credit and other terms. Further, to date, none of the Company’s key operations vendors has had any negative impacts related to COVID-19 or changes which have negatively affected the Company’s business, borrowing capabilities or financial covenants. Though the COVID-19 pandemic is fluid, the Company believes at this time that its business may continue to minimize the impact, if any, from this current pandemic given the Company’s ability to work remotely, continued consumer demand for products on e-commerce channels and the business continuity plans of its key manufacturing partners and other vendors. The Company believes this combination of factors may help to mitigate risk from the COVID-19 pandemic.

Summary of Significant Accounting Policies

9 Months Ended

Sep. 30, 2020

Accounting Policies [Abstract]

Summary of Significant Accounting Policies

2.	SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis of Presentation—The accompanying unaudited condensed consolidated financial statements have been prepared by the Company in accordance with generally accepted accounting principles in the United States (“GAAP”) for interim financial reporting and as required by Rule 10-01 of Regulation S-X. In the opinion of the Company’s management, the accompanying unaudited condensed consolidated financial statements contain all adjustments (consisting of items of a normal and recurring nature) necessary to present fairly the financial position as of September 30, 2020, the results of operations for the three and nine months ended September 30, 2019 and 2020, the statements of stockholders’ equity for the three and nine months ended September 30, 2019 and 2020, and cash flows for the nine months ended September 30, 2019 and 2020. The results of operations for the three and nine months ended September 30, 2020 are not necessarily indicative of the results to be expected for the full year.

The condensed consolidated balance sheet as of December 31, 2019 included herein was derived from the Company’s audited consolidated financial statements as of that date, but does not include all of the information and notes required by GAAP for complete financial statements. Certain information and note disclosures normally included in the financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations. As such, the information included in this Quarterly Report on Form 10-Q should be read in conjunction with the audited consolidated financial statements and the related notes thereto as of and for the year ended December 31, 2019, included in the Company’s Annual Report on Form 10-K filed with the Securities and Exchange Commission, on March 30, 2020 (the “Annual Report”).

Use of Estimates—Preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period covered by the financial statements and accompanying notes. Management evaluates its estimates and assumptions on an ongoing basis using historical experience and other factors, including the current economic environment, and makes adjustments when facts and circumstances dictate. As future events and their effects cannot be determined with precision, actual results could differ from those estimates.

Principles of Consolidation—The condensed consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All inter-company balances and transactions have been eliminated in consolidation.

Revenue Recognition—The Company accounts for revenue in accordance with Financial Accounting Standards Board (“FASB”) Accounting Standard Codification (“ASC”) Topic 606, Revenue from Contracts with Customers. The Company derives its revenue from the sale of consumer products. The Company sells its products directly to consumers through online retail channels and through wholesale channels.

Net Revenue by Category. The following table sets forth the Company’s net revenue disaggregated by sales channel and geographic region based on the billing addresses of its customers:

	Three Months Ended September 30, 2019
	(in thousands)
	Direct		Wholesale		Managed SaaS		Total
North America	$	40,007	$	259	$	318	$	40,584
Other		19		—		—		19
Total net revenue	$	40,026	$	259	$	318	$	40,603

	Three Months Ended September 30, 2020
	(in thousands)
	Direct		Wholesale		Managed SaaS		Total
North America	$	48,415	$	10,022	$	340	$	58,777
Other		6		—		—		6
Total net revenue	$	48,421	$	10,022	$	340	$	58,783

	Nine Months Ended September 30, 2019
	(in thousands)
	Direct		Wholesale		Managed SaaS		Total
North America	$	86,312	$	1,171	$	1,248	$	88,731
Other		86		—		—		86
Total net revenue	$	86,398	$	1,171	$	1,248	$	88,817

	Nine Months Ended September 30, 2020
	(in thousands)
	Direct		Wholesale		Managed SaaS		Total
North America	$	127,316	$	15,808	$	1,046	$	144,170
Other		42		—		—		42
Total net revenue	$	127,358	$	15,808	$	1,046	$	144,212

Net Revenue by Product Categories. The following table sets forth the Company’s net revenue disaggregated by product categories:

	Three Months Ended September 30,
	2019		2020
	(in thousands)
Environmental appliances (i.e., dehumidifiers and air conditioners)	$	27,083	$	35,241
Small home appliances		8,100		6,471
Personal protective equipment		—		8,830
Cosmetics, skincare, and heath supplements		2,569		2,626
Cookware, kitchen tools and gadgets		1,320		1,433
Hair appliances and accessories		732		719
All others		481		3,123
Total net product revenue		40,285		58,443
Managed SaaS		318		340
Total net revenue	$	40,603	$	58,783

	Nine Months Ended September 30,
	2019		2020
	(in thousands)
Environmental appliances (i.e., dehumidifiers and air conditioners)	$	52,757	$	83,103
Small home appliances		17,426		20,584
Personal protective equipment		—		14,557
Cosmetics, skincare, and heath supplements		8,346		8,989
Cookware, kitchen tools and gadgets		5,279		4,491
Hair appliances and accessories		2,590		3,636
All others		1,171		7,806
Total net product revenue		87,569		143,166
Managed SaaS		1,248		1,046
Total net revenue	$	88,817	$	144,212

Fair Value of Financial Instruments—The Company’s financial instruments, including net accounts receivable, accounts payable, and accrued and other current liabilities are carried at historical cost. At September 30, 2020, the carrying amounts of these instruments approximated their fair values because of their short-term nature. The Company’s credit facility is carried at amortized cost at December 31, 2019 and September 30, 2020 and the carrying amount approximates fair value as the stated interest rate approximates market rates currently available to the Company. The Company considers the inputs utilized to determine the fair value of the borrowings to be Level 2 inputs. The Company’s financial instruments of cash and restricted cash consist of Level 1 assets at December 31, 2019 and September 30, 2020. The Company’s cash and restricted cash was approximately $30.8 million and $37.8 million, respectively, and included savings deposits and overnight investments at December 31, 2019 and September 30, 2020.

Assets and liabilities recorded at fair value on a recurring basis in the condensed consolidated balance sheets are categorized based upon the level of judgment associated with the inputs used to measure their fair values. Fair value is defined as the exchange price that would be received for an asset or an exit price that would be paid to transfer a liability in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs. The authoritative guidance on fair value measurements establishes a three-tier fair value hierarchy for disclosure of fair value measurements as follows:

Level 1—Inputs are unadjusted, quoted prices in active markets for identical assets or liabilities at the measurement date;

Level 2—Inputs are observable, unadjusted quoted prices in active markets for similar assets or liabilities, unadjusted quoted prices for identical or similar assets or liabilities in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the related assets or liabilities; and

Level 3—Unobservable inputs that are supported by little or no market data for the related assets or liabilities.

The categorization of a financial instrument within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement.

Recent Accounting Pronouncements

The Jumpstart Our Business Startups Act of 2012 (the “JOBS Act”) permits an emerging growth company to take advantage of an extended transition period to comply with new or revised accounting standards applicable to public companies. The Company has elected to use this extended transition period until it is no longer an emerging growth company or until it affirmatively and irrevocably opts out of the extended transition period. As a result, the Company’s financial statements may not be comparable to companies that comply with new or revised accounting pronouncements as of public company effective dates.

Adopted Accounting Standards

In June 2018, the FASB issued Accounting Standards Update (“ASU”) No. 2018-07, Compensation—Stock Compensation (Topic 718): Improvements to Nonemployee Share-based Payment Accounting, which expands the scope of ASC Topic 718, Compensation—Stock Compensation, which currently only includes share-based payments issued to employees, to also include share-based payments issued to nonemployees for goods and services. This ASU is effective for all annual reporting periods beginning after December 15, 2019, including interim periods therein. The new guidance was adopted on January 1, 2020 with no material impact on the condensed consolidated financial statements.

In February 2018, the FASB issued ASU No. 2018-02, Income Statement—Reporting Comprehensive Income (Topic 220) (“ASU 2018-02”). ASU 2018-02 addresses the effect of the change in the U.S. federal corporate tax rate due to the enactment of the Tax Cuts and Jobs Act of 2017 on items within accumulated other comprehensive income (loss). The new guidance was adopted on January 1, 2020 with no material impact on the Company’s condensed consolidated financial statements.

In August 2018, the FASB issued ASU No. 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement, which changes the fair value measurement disclosure requirements of ASC Topic 820. The amendments in this ASU are the result of a broader disclosure project called FASB Concepts Statement, Conceptual Framework for Financial Reporting—Chapter 8: Notes to Financial Statements. This ASU is effective for all annual reporting periods beginning after December 15, 2019, including interim periods therein. The new guidance was adopted on January 1, 2020 with no material impact on the Company’s condensed consolidated financial statements.

Recently Issued Accounting Pronouncements

The Company is an “emerging growth company,” as defined in Section 2(a) of the Securities Act of 1933, as amended (the “Securities Act”), as modified by the JOBS Act, and it may take advantage of certain exemptions from various reporting requirements that are applicable to other public companies that are not emerging growth companies including, but not limited to, not being required to comply with the auditor attestation requirements of Section 404 of the Sarbanes-Oxley Act, reduced disclosure obligations regarding executive compensation in its periodic reports and proxy statements, and exemptions from the requirements of holding a nonbinding advisory vote on executive compensation and stockholder approval of any golden parachute payments not previously approved.

Further, Section 102(b)(1) of the JOBS Act exempts emerging growth companies from being required to comply with new or revised financial accounting standards until private companies (that is, those that have not had a Securities Act registration statement declared effective or do not have a class of securities registered under the Securities Exchange Act of 1934, as amended) are required to comply with the new or revised financial accounting standards. The JOBS Act provides that a company can elect to opt out of the extended transition period and comply with the requirements that apply to non-emerging growth companies but any such election to opt out is irrevocable. The Company has elected not to opt out of such extended transition period, which means that when a standard is issued or revised and it has different application dates for public or private companies, the Company, as an emerging growth company, can adopt the new or revised standard at the time private companies adopt the new or revised standard. This may make comparison of the Company’s financial statements with another public company which is neither an emerging growth company nor an emerging growth company which has opted out of using the extended transition period difficult or impossible because of the potential differences in accounting standards used.

In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) (“ASU 2016-02”), which requires lessees to record most leases on their balance sheets but recognize the expenses on their income statements in a manner similar to current practice. ASU 2016-02 states that a lessee would recognize a lease liability for the obligation to make lease payments and a right-to-use asset for the right to use the underlying asset for the lease term. In July 2019, the FASB delayed the effective date for this ASU for private companies (including emerging growth companies) and it will be effective for annual reporting periods beginning after December 15, 2021, with early adoption permitted. While the Company has not completed its evaluation of the impact of adoption of this standard, the Company does not expect it to have a material impact on its consolidated financial statements.

In June 2016, the FASB issued ASU 2016-13: Financial Instruments – Credit Losses (Topic 326). This ASU requires the use of an expected loss model for certain types of financial instruments and requires consideration of a broader range of reasonable and supportable information to calculate credit loss estimates. For trade receivables, loans and held-to-maturity debt securities, an estimate of lifetime expected credit losses is required. For available-for-sale debt securities, an allowance for credit losses will be required rather than a reduction to the carrying value of the asset. In July 2019, the FASB delayed the effective date for this ASU for private companies (including emerging growth companies) and will be effective for annual reporting periods beginning after December 15, 2022, with early adoption permitted. While the Company has not completed its evaluation of the impact of adoption of this standard, the Company does not expect it to have a material impact on its consolidated financial statements.

Inventory

9 Months Ended

Sep. 30, 2020

Inventory Disclosure [Abstract]

Inventory

INVENTORY

Inventory consisted of the following as of December 31, 2019 and September 30, 2020:

	December 31, 2019		September 30, 2020
	(in thousands)
Inventory on-hand	$	29,370	$	13,240
Inventory in-transit		6,842		5,551
Inventory	$	36,212	$	18,791

All of the Company’s inventory on-hand is held either with Amazon or the Company’s other third-party warehouses. The Company does not have any contractual right of returns with its contract manufacturers. The Company’s inventory on-hand held by Amazon was approximately $4.7 million and $3.1 million as of December 31, 2019 and September 30, 2020, respectively.

Prepaid Expenses and Other Current Assets

9 Months Ended

Sep. 30, 2020

Prepaid Expense And Other Assets Current [Abstract]

Prepaid Expenses and Other Current Assets

4.	PREPAID EXPENSES AND OTHER CURRENT ASSETS

Prepaids and other current assets consisted of the following as of December 31, 2019 and September 30, 2020:

	December 31, 2019		September 30, 2020
	(in thousands)
Prepaid inventory	$	2,195	$	2,566
Restricted cash		307		312
Prepaid insurance		1,967		2,081
Barter credits		—		889
Other		926		1,495
Prepaid and other current assets	$	5,395	$	7,343

Accrued and Other Current Liabilities

9 Months Ended

Sep. 30, 2020

Accrued Liabilities And Other Liabilities [Abstract]

Accrued and Other Current Liabilities

5.	ACCRUED AND OTHER CURRENT LIABILITIES

Accrued expenses and other current liabilities consisted of the following as of December 31, 2019 and September 30, 2020:

	December 31, 2019		September 30, 2020
	(in thousands)
Accrued compensation costs	$	300	$	2,096
Accrual for insurance financing		1,031		1,512
Accrued professional fees and consultants		400		562
Accrued logistics costs		2,326		2,004
Product related accruals		1,518		2,428
Sales tax payable		507		485
Sales return reserve		456		534
Accrued commission		—		1,675
Seller note from acquisition		195		—
All other accruals		772		1,038
Accrued and other current liabilities	$	7,505	$	12,334

The Company sponsors, through its professional employer organization provider, a 401(k) defined contribution plan covering all eligible US employees. Contributions to the 401(k) plan are discretionary. Currently, the Company does not match or make any contributions to the 401(k) plan.

Credit Facility and Term Loans

9 Months Ended

Sep. 30, 2020

Debt Disclosure [Abstract]

Credit Facility and Term Loans

6.CREDIT FACILITY AND TERM LOANS

Credit facility and term loans consisted of the following as of December 31, 2019 and September 30, 2020:

	December 31, 2019			September 30, 2020
	(in thousands)
MidCap credit facility	$	22,953		$	14,184
Less: deferred debt issuance costs		(1,268	)		(749	)
Less discount associated with issuance of warrants		(28	)		(17	)
Total MidCap credit facility	$	21,657		$	13,418

Horizon term loan	$	15,000		$	14,000
Less: deferred debt issuance costs		(836	)		(628	)
Less discount associated with issuance of warrants		(697	)		(522	)
Total Horizon term loan		13,467			12,850
Less-current portion		(3,000	)		(6,500	)
Term loan-non current portion	$	10,467		$	6,350

MidCap Credit Facility and Term Loan

On November 23, 2018, the Company entered into a three-year $25.0 million revolving credit facility (the “Credit Facility”) with MidCap Financial Trust (“MidCap”). The Credit Facility can be increased, subject to certain conditions, to $50.0 million. Loans under the Credit Facility are determined based on percentages of the Company’s eligible accounts receivable and eligible inventory. The Credit Facility bears interest at the London Interbank Offered Rate (“LIBOR”) plus 5.75% for outstanding borrowings. The Company is required to pay a facility availability fee of 0.5% on the average unused portion of the facility. The Credit Facility contains a minimum liquidity financial covenant that requires the Company to maintain a minimum of $5.0 million in cash on hand or availability in the Credit Facility. In 2018, the Company incurred approximately $1.3 million in debt issuance costs which has been offset against the debt and will be expensed over the three years. Unamortized debt issuance costs of $0.7 million, relating to a prior three-year revolving credit facility with MidCap, will be amortized in accordance with the terms of the Credit Facility. As of December 31, 2019, there was $23.0 million outstanding on the Credit Facility and an available balance of approximately $0.0 million. As of September 30, 2020, there was $14.2 million outstanding on the Credit Facility and an available balance of $0.4 million. As of September 30, 2020, the Company was in compliance with the financial covenants contained within the Credit Facility.

The Company recorded interest expense from the Credit Facility of approximately $0.4 million, $0.4 million, $1.9 million and $1.6 million for the three and nine months ended September 30, 2019 and 2020 respectively, which included less than, $0.2 million for each three month period and approximately $0.5 million for each nine month period, respectively, relating to debt issuance costs.

Horizon Term Loan

On December 31, 2018, the Company entered into a term loan agreement (the “Horizon Loan Agreement”) with Horizon Technology Finance Corporation (“Horizon”). As part of the agreement, the Company obtained a five-year $15.0 million term loan (the “Term Loan”). The Term Loan bears interest at 9.90% plus the amount by which one-month LIBOR (or, if LIBOR is no longer widely used or available, a successor benchmark rate, which successor rate shall be applied in a manner consistent with market practice, or if there is no consistent market practice, such successor rate shall be applied in a manner reasonably determined by Horizon) exceeds 2.50% for outstanding borrowings and payments on principal are made on a monthly basis. The maturity date of the Term Loan is January 2023. The Term Loan contains minimum required EBITDA financial covenants that require the Company to achieve EBITDA of certain amounts based on the amount that the Company is permitted to borrow above $25.0 million under the Credit Facility (the “Revolving Line Indebtedness Cap”). The Horizon Loan Agreement also contains a cash collateral covenant that requires the Company to maintain a cash collateral account with an amount based on the Revolving Line Indebtedness Cap.

In connection with the Horizon Loan Agreement, the Company issued to Horizon warrants to purchase 76,923 shares of its common stock at an exercise price of $15.60 per share. The warrants are exercisable and expire ten years from the date of issuance. The Company utilized the Binomial option-pricing model to determine the fair value of the warrants. The fair value of the warrants on issuance was $0.9 million, which has been recorded as a debt discount against the Term Loan.

The Company incurred approximately $1.0 million in debt issuance costs which has been offset against the debt and will be expensed over the five year term of the Term Loan.

The Credit Facility and the Term Loan contain a minimum liquidity covenant that requires the Company to maintain at minimum $5.0 million in unrestricted cash at all times, subject to increases based on amounts drawn. Further, there are additional covenants that, among other things, restrict the ability of the Company and certain of its subsidiaries to (i) incur, assume or guarantee additional indebtedness; (ii) pay dividends or redeem or repurchase capital stock; (iii) make other restricted payments; (iv) incur liens; (v) redeem debt that is junior in right of payment to the notes; (vi) sell or otherwise dispose of assets, including capital stock of subsidiaries; (vii) enter into mergers or consolidations; and (viii) enter into transactions with affiliates. These covenants are subject to a number of exceptions and qualifications.

As of December 31, 2019, and September 30, 2020 there was $15.0 million and $14.0 million, respectively, outstanding on the Term Loan and the Company was in compliance with the financial covenants. The Company recorded interest expense from the Term Loan of $0.5 million, $0.5 million, $1.5 million and $1.5 million for the three and nine months ended September 30, 2019 and 2020, respectively, which included approximately $0.1 million for each of the three months ended September 30, 2019 and 2020 and $0.4 million for each of the nine months ending September 30, 2019 and 2020, relating to debt issuance costs for each period, respectively.

Interest Expense, Net

Interest expense, net consisted of the following for the three and nine months ended September 30, 2019 and 2020:

	Three Months Ended
	September 30, 2019			September 30, 2020
	(in thousands)
Interest expense	$	955		$	960
Interest income		(80	)		(26	)
Total Interest expense, net	$	875		$	934

	Nine Months Ended
	September 30, 2019			September 30, 2020
	(in thousands)
Interest expense	$	3,456		$	3,177
Interest income		(88	)		(57	)
Total Interest expense, net	$	3,368		$	3,120

Stock-Based Compensation

9 Months Ended

Sep. 30, 2020

Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]

Stock-Based Compensation

7.	STOCK-BASED COMPENSATION

The Company has three equity plans:

2014 Amended and Restated Equity Incentive Plan

The board of directors of Mohawk Group Holdings Inc., a subsidiary of the Company (“MGI”), adopted, and MGI’s stockholders approved, the Mohawk Group, Inc. 2014 Equity Incentive Plan on June 11, 2014. On March 1, 2017, MGI’s board of directors adopted, and MGI’s stockholders approved, an amendment and restatement of the 2014 Equity Incentive Plan (as amended, the “Mohawk 2014 Plan”). As of September 30, 2020, 56,327 shares were reserved for awards available for future issuance under the Mohawk 2014 Plan.

2018 Equity Incentive Plan

The Company’s board of directors adopted the Mohawk Group Holdings, Inc. 2018 Equity Incentive Plan (the “Mohawk 2018 Plan”) on October 11, 2018. The Mohawk 2018 Plan was approved by its stockholders on May 24, 2019. As of September 30, 2020, 1,002,522 shares were reserved for awards available for future issuance under the Mohawk 2018 Plan.

Options granted to date under the Mohawk 2014 Plan and the Mohawk 2018 Plan generally vest either: (i) over a four-year period with 25% of the shares underlying the options vesting on the first anniversary of the vesting commencement date with the remaining 75% of the shares vesting on a pro-rata basis over the succeeding thirty-six months, subject to continued service with the Company through each vesting date, or (ii) over a three-year period with 33 1/3% of the shares underlying the options vesting on the first anniversary of the vesting commencement date with the remaining 66 2/3% of the shares vesting on a pro-rata basis over the succeeding twenty-four months, subject to continued service with the Company through each vesting date. Options granted are generally exercisable for up to 10 years subject to continued service with the Company.

2019 Equity Plan

The Company’s board of directors adopted the Mohawk Group Holdings, Inc. 2019 Equity Plan (the “2019 Equity Plan”) on March 20, 2019. The 2019 Equity Plan was approved by its stockholders on May 24, 2019. As of September 30, 2020, no shares were reserved for future issuance. Shares of restricted common stock granted under the 2019 Equity Plan initially vested in substantially equal installments on the 6th, 12th, 18th and 24th monthly anniversary of the closing of the IPO. The Company and the 2019 Equity Plan participants subsequently agreed to extend (i) the vesting date for the first installment of shares of restricted common stock under the 2019 Equity Plan to March 13, 2020, (ii) the vesting date for the second installment of shares of restricted common stock to December 15, 2020, (iii) the vesting date for the third installment of shares of restricted common stock to January 2, 2021, and (iv) the fourth installment of shares of restricted common stock to July 1, 2021. Awards granted under the 2019 Equity Plan and not previously forfeited upon termination of service carry dividend and voting rights applicable to the Company’s common stock, irrespective of any vesting requirement. Under ASC Topic 718, the Company treats each award in substance as multiple awards as a result of the graded vesting and that there is more than one requisite service period. Upon prerequisite service period becoming probable, the day of the IPO, the Company recorded a cumulative catch up expense and the remaining expense will be recorded under graded vesting. In the event the service of a participant in the 2019 Equity Plan (each, a “Participant”) is terminated due to an “involuntary termination”, then all of such Participant’s unvested shares of restricted common stock shall vest on the date of such involuntary termination unless, within three business days of such termination (1) the Company’s board of directors unanimously determines that such vesting shall not occur and (2) the remaining Participants holding restricted share awards covering at least 70% of the shares of restricted common stock issued and outstanding under the 2019 Equity Plan determine that such vesting shall not occur. In the event of a forfeiture, voluntary or involuntary, of shares of restricted common stock granted under the 2019 Equity Plan, such shares are automatically reallocated to the remaining Participants in proportion to the number of shares of restricted common stock covered by outstanding awards that each such Participant holds.

The following is a summary of stock option activity during the nine months ended September 30, 2020:

	Options Outstanding
	Number of Options			Weighted- Average Exercise Price		Weighted- Average Remaining Contractual Life (years)		Aggregate Intrinsic Value
Balance—January 1, 2020		1,862,569		$	9.09		8.64	$	99
Options granted		—		$	—		—	$	—
Options exercised		(2,870	)	$	4.14		—	$	—
Options cancelled		(276,420	)	$	9.28		—	$	—
Balance—September 30, 2020		1,583,279		$	9.07		7.95	$	588
Exercisable as of September 30, 2020		1,062,960		$	8.90		7.84	$	508
Vested and expected to vest as of September 30, 2020		1,583,279		$	9.07		7.95	$	588

As of September 30, 2020, the total unrecognized compensation expense related to unvested options was $6.2 million, which the Company expects to recognize over an estimated weighted average period of 1.03 years.

During the nine months ended September 30, 2020, no options were granted, options to purchase 276,420 shares of the Company’s common stock were cancelled, and options to purchase 2,870 shares of the Company’s common stock were exercised.

During the nine months ended September 30, 2019, the Company granted options to purchase 195,975 shares of the Company’s common stock, cancelled options to purchase 165,622 shares of the Company’s common stock and options to purchase 487 shares of the Company’s common stock were exercised.

A summary of restricted stock award activity within the Company’s equity plans and changes for the nine months ended September 30, 2020 is as follows:

Restricted Stock Awards	Shares			Weighted Average Grant- Date Fair Value
Nonvested at January 1, 2020		2,601,972		$	18.21
Granted		691,709		$	3.82
Vested		(416,953	)	$	14.38
Forfeited		(519,695	)	$	17.56
Nonvested at September 30, 2020		2,357,033		$	14.95

On March 12, 2020, 371,329 shares of restricted common stock were forfeited and treated as a cancellation with remaining unrecognized expense for the unvested awards recognized on the date of cancellation. The Company did not reverse previously recognized compensation expense as a result of these forfeitures.

On May 8, 2020, 134,366 shares of restricted common stock were forfeited and the Company reversed previously recognized compensation expense for unvested grants.

During the three months ended September 30, 2020, 14,000 shares of restricted common stock were forfeited and the Company reversed previously recognized expense for unvested grants.

Stock-based compensation expense for shares of restricted common stock granted was $3.3 million and $12.9 million for the three and nine months ended September 30, 2020, respectively. Stock-based compensation expense for shares restricted common stock granted was $9.8 million and $20.3 million for the three and nine months ended September 30, 2019, respectively. No shares of restricted common stock vested during the nine months ended September 30, 2019.

The weighted-average grant date fair value of shares of restricted common stock granted during the three months ended September 30, 2020 was $6.34. As of September 30, 2020, the total unrecognized compensation expense related to unvested shares of restricted common stock was $6.5 million which the Company expects to recognize over an estimated weighted-average period of 0.62 years.

The table above includes 0.4 million shares of restricted common stock that have been granted under the Mohawk 2018 Plan, included in the shares outstanding under that plan and carry dividend or voting rights applicable to the Company’s common stock.

Stock-based compensation expense is allocated based on the cost center to which the award holder belongs. The following table summarizes the total stock-based compensation expense by function, including expense related to consultants, for the three and nine months ended September 30, 2020 and 2019:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2019		2020		2019		2020
	(in thousands)				(in thousands)
Sales and distribution expenses	$	2,421	$	748	$	5,218	$	1,761
Research and development expenses		1,920		778		3,952		3,231
General and administrative expenses		7,033		3,335		15,577		12,480
Total stock-based compensation expense	$	11,374	$	4,861	$	24,747	$	17,472

Net Loss per Share

9 Months Ended

Sep. 30, 2020

Earnings Per Share [Abstract]

Net Loss per Share

8.	NET LOSS PER SHARE

Basic net loss per share is determined by dividing net loss by the weighted-average shares of common stock outstanding during the period. Diluted net loss per share is determined by dividing net loss by diluted weighted-average shares outstanding. Diluted weighted-average shares reflects the dilutive effect, if any, of potentially dilutive shares of common stock, such as options to purchase common stock calculated using the treasury stock method and convertible notes using the “if-converted” method. In periods with reported net operating losses, all options to purchase common stock are deemed anti-dilutive such that basic net loss per share and diluted net loss per share are equal.

The Company’s shares of restricted common stock are entitled to receive dividends and hold voting rights applicable to the Company’s common stock, irrespective of any vesting requirement. Accordingly, although the vesting commences upon the elimination of the contingency, the shares of restricted common stock are considered a participating security and the Company is required to apply the two-class method to consider the impact of the shares of restricted common stock on the calculation of basic and diluted earnings per share. The Company is currently in a net loss position and is therefore not required to present the two-class method; however, in the event the Company is in a net income position, the two-class method must be applied by allocating all earnings during the period to shares of common stock and shares of restricted common stock.

The following table sets forth the computation of basic and diluted net loss per share (in thousands, except per share data):

	Three Months Ended September 30,
	2019			2020
	(in thousands)
Net loss	$	(14,975	)	$	(805	)
Weighted-average number of shares outstanding used in computing net loss per share, basic and diluted		15,134,422			17,090,050
Net loss per share, basic and diluted	$	(0.99	)	$	(0.05	)

	Nine Months Ended September 30,
	2019			2020
	(in thousands)
Net loss	$	(40,243	)	$	(18,772	)
Weighted-average number of shares outstanding used in computing net loss per share, basic and diluted		12,971,641			15,903,517
Net loss per share, basic and diluted	$	(3.10	)	$	(1.18	)

Commitments and Contingencies

9 Months Ended

Sep. 30, 2020

Commitments And Contingencies Disclosure [Abstract]

Commitments and Contingencies

9.	COMMITMENTS AND CONTINGENCIES

Legal Proceedings—The Company is party to various actions and claims arising in the normal course of business. The Company does not believe that the final outcome of these matters will have a material adverse effect on the Company’s condensed consolidated financial position or results of operations. In addition, the Company maintains what it believes is adequate insurance coverage to further mitigate risk. However, no assurance can be given that the final outcome of such proceedings will not materially impact the Company’s condensed consolidated financial condition or results of operations. Further, no assurance can be given that the amount or scope of existing insurance coverage will be sufficient to cover losses arising from such matters.

Sales or Other Similar Taxes— Based on the location of the Company’s current operations, the majority of sales tax is collected and remitted either by the Company or on its behalf by e-commerce market places in most states within the United States. To date, the Company has had no actual or threatened sales and use tax claims from any state where it does not already claim nexus or any state where it sold products prior to claiming nexus. However, the Company believes that the likelihood of incurring a liability as a result of sales tax nexus being asserted by certain states where it sold products prior to claiming nexus is probable. As of December 31, 2019 and September 30, 2020, the Company estimates that the potential liability, including current sales tax payable is approximately $0.5 million which has been recorded as an accrued liability. The Company believes this is the best estimate of an amount due to taxing agencies, given that such a potential loss is an unasserted liability that would be contested and subject to negotiation between the Company and the state, or decided by a court.

U.S. Department of Energy— In September 2019, the Company received a Test Notice from the U.S. Department of Energy (“DOE”) indicating that a certain dehumidifier model may not comply with applicable energy-conservation standards. The DOE requested that the Company provide it with several model units for DOE testing. If the Company is determined to have violated certain energy-conservation standard, it could be fined pursuant to DOE guidelines, and this civil penalty may be material to the Company’s consolidated financial statements. The Company intends to vigorously defend itself. The Company has submitted to the DOE testing process, made a good-faith effort to provide necessary notice as practicable, and included in a formal response to the DOE copies of the energy-efficiency report and certification that were issued for the dehumidifier model at the time of production. The Company believes that its products are compliant, and the Company, in conjunction with its manufacturing partner, has disputed the Test Notice received from the DOE. As of the date of the issuance of these financial statements, the Company cannot reasonably estimate what, if any, penalties may be levied.

U.S. Environmental Protection Agency—In September 2019, the Company received notice from the U.S. Environmental Protection Agency (“EPA”) that certain of its dehumidifier products were identified by the Association of Home Appliance Manufacturers (“AHAM”) as failing to comply with EPA ENERGY STAR requirements. For an appliance to be ENERGY STAR certified, it must meet standards promulgated by the EPA and enforced through EPA-accredited certification bodies and laboratories. The Company believes that its products are compliant, and the Company, in conjunction with its manufacturing partner, has disputed the AHAM testing determination pursuant to EPA guidelines. While a resolution remains pending, the Company is not selling or marketing the products identified by the EPA. The Company cannot be certain that these products will eventually be certified by the EPA, and the Company may incur costs that cannot presently be calculated in the event that the Company needs to make changes to the manner in which these products are manufactured and sold.

In April 2020, the Company received notice from the EPA with respect to regulatory compliance and the advertising associated with certain of its dehumidifier products. The Company believes that its products are compliant, and the Company is currently in discussions with the EPA to resolve the matter. The EPA has placed a hold on the sale of certain of the Company's dehumidifier inventory while it reviews the matter with the Company. The Company cannot be certain of the outcome with the EPA, and the Company may incur costs and penalties that cannot presently be calculated in the event that the Company is unable to resolve this matter with the EPA.

Acquisition

9 Months Ended

Sep. 30, 2020

Business Combinations [Abstract]

Acquisition

10. Acquisition

On August 26, 2020, the Company completed the acquisition of the “Truweo Assets”, whose products sell primarily on the Amazon US marketplace, for total consideration of $16.4 million, which was comprised of cash of $14.0 million and a promissory note for $2.4 million. The promissory note accrues interest at a rate of 8% per annum, with $0.6 million principal and accrued interest payments due on November 30, 2021, February 28, 2022, and May 31, 2022 and matures on August 22, 2022.

The following presents the preliminary allocation of purchase price to the assets acquired and liabilities assumed, based on the estimated fair values at acquisition date:

	Total
	(in thousands)
Inventory	$	595
Intangible assets		3,111
Goodwill		12,734
Net assets acquired	$	16,440

The amounts assigned to goodwill and major intangible asset classifications were as follows:

	Amount Allocated		Useful life (in years)
	(in thousands)
Goodwill	$	12,734	n.a.
Trademarks		3,000	5
Non-competition agreement		100	<1
Transition services agreement		11	3
Net Intangible Assets		15,845

Pro Forma Information

The following unaudited pro forma information illustrates the impact of the Truweo Assets acquisition on the Company’s net revenue for the three and nine months ended September 30, 2019 and 2020. The acquisition of the Truweo Assets is reflected in the following pro forma information as if the acquisition had occurred on January 1, 2019.

	Three months ended September 30,					Nine months ended September 30,
	2019			2020		2019			2020
	(in thousands)
Net revenue as reported	$	40,603		$	58,783	$	88,817		$	144,212
Truweo net revenue		1,920			2,515		5,182			11,155
Net revenue pro forma	$	42,523		$	61,298	$	93,999		$	155,367

Operating income (loss) as reported	$	(14,071	)	$	106	$	(36,799	)	$	(15,610	)
Truweo operating income		854			1,316		2,460			5,484
Operating income (loss) pro forma	$	(13,217	)	$	1,422	$	(34,339	)	$	(10,126	)

Summary of Significant Accounting Policies (Policies)

9 Months Ended

Sep. 30, 2020

Accounting Policies [Abstract]

Basis of Presentation

Use of Estimates

Principles of Consolidation

Revenue Recognition

Net Revenue by Category. The following table sets forth the Company’s net revenue disaggregated by sales channel and geographic region based on the billing addresses of its customers:

	Three Months Ended September 30, 2019
	(in thousands)
	Direct		Wholesale		Managed SaaS		Total
North America	$	40,007	$	259	$	318	$	40,584
Other		19		—		—		19
Total net revenue	$	40,026	$	259	$	318	$	40,603

	Three Months Ended September 30, 2020
	(in thousands)
	Direct		Wholesale		Managed SaaS		Total
North America	$	48,415	$	10,022	$	340	$	58,777
Other		6		—		—		6
Total net revenue	$	48,421	$	10,022	$	340	$	58,783

	Nine Months Ended September 30, 2019
	(in thousands)
	Direct		Wholesale		Managed SaaS		Total
North America	$	86,312	$	1,171	$	1,248	$	88,731
Other		86		—		—		86
Total net revenue	$	86,398	$	1,171	$	1,248	$	88,817

	Nine Months Ended September 30, 2020
	(in thousands)
	Direct		Wholesale		Managed SaaS		Total
North America	$	127,316	$	15,808	$	1,046	$	144,170
Other		42		—		—		42
Total net revenue	$	127,358	$	15,808	$	1,046	$	144,212

Net Revenue by Product Categories. The following table sets forth the Company’s net revenue disaggregated by product categories:

	Three Months Ended September 30,
	2019		2020
	(in thousands)
Environmental appliances (i.e., dehumidifiers and air conditioners)	$	27,083	$	35,241
Small home appliances		8,100		6,471
Personal protective equipment		—		8,830
Cosmetics, skincare, and heath supplements		2,569		2,626
Cookware, kitchen tools and gadgets		1,320		1,433
Hair appliances and accessories		732		719
All others		481		3,123
Total net product revenue		40,285		58,443
Managed SaaS		318		340
Total net revenue	$	40,603	$	58,783

	Nine Months Ended September 30,
	2019		2020
	(in thousands)
Environmental appliances (i.e., dehumidifiers and air conditioners)	$	52,757	$	83,103
Small home appliances		17,426		20,584
Personal protective equipment		—		14,557
Cosmetics, skincare, and heath supplements		8,346		8,989
Cookware, kitchen tools and gadgets		5,279		4,491
Hair appliances and accessories		2,590		3,636
All others		1,171		7,806
Total net product revenue		87,569		143,166
Managed SaaS		1,248		1,046
Total net revenue	$	88,817	$	144,212

Fair Value of Financial Instruments

Level 1—Inputs are unadjusted, quoted prices in active markets for identical assets or liabilities at the measurement date;

Level 3—Unobservable inputs that are supported by little or no market data for the related assets or liabilities.

The categorization of a financial instrument within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement.

Recent Accounting Pronouncements

Adopted Accounting Standards

Recently Issued Accounting Pronouncements

- Definition

Disclosure of accounting policy for revenue from contract with customer.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 17
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130561-203045

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 20
-Subparagraph (d)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130566-203045

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 18
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130563-203045

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-URI http://asc.fasb.org/topic&trid=49130388

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
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-Section 50
-Paragraph 20
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Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 18
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130563-203045

Reference 7: http://www.xbrl.org/2003/role/exampleRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section 50
-Paragraph 4
-Subparagraph (e)
-URI http://asc.fasb.org/extlink&oid=84158767&loc=d3e18823-107790

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 20
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130566-203045

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 19
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130564-203045

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 20
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130566-203045

+ Details

Summary of Significant Accounting Policies (Tables)

9 Months Ended

Sep. 30, 2020

Accounting Policies [Abstract]

Net Revenue Disaggregated by Sales Channel and Geographic Region

Net Revenue by Category. The following table sets forth the Company’s net revenue disaggregated by sales channel and geographic region based on the billing addresses of its customers:

	Three Months Ended September 30, 2019
	(in thousands)
	Direct		Wholesale		Managed SaaS		Total
North America	$	40,007	$	259	$	318	$	40,584
Other		19		—		—		19
Total net revenue	$	40,026	$	259	$	318	$	40,603

	Three Months Ended September 30, 2020
	(in thousands)
	Direct		Wholesale		Managed SaaS		Total
North America	$	48,415	$	10,022	$	340	$	58,777
Other		6		—		—		6
Total net revenue	$	48,421	$	10,022	$	340	$	58,783

	Nine Months Ended September 30, 2019
	(in thousands)
	Direct		Wholesale		Managed SaaS		Total
North America	$	86,312	$	1,171	$	1,248	$	88,731
Other		86		—		—		86
Total net revenue	$	86,398	$	1,171	$	1,248	$	88,817

	Nine Months Ended September 30, 2020
	(in thousands)
	Direct		Wholesale		Managed SaaS		Total
North America	$	127,316	$	15,808	$	1,046	$	144,170
Other		42		—		—		42
Total net revenue	$	127,358	$	15,808	$	1,046	$	144,212

Net Revenue Disaggregated by Product Categories

Net Revenue by Product Categories. The following table sets forth the Company’s net revenue disaggregated by product categories:

	Three Months Ended September 30,
	2019		2020
	(in thousands)
Environmental appliances (i.e., dehumidifiers and air conditioners)	$	27,083	$	35,241
Small home appliances		8,100		6,471
Personal protective equipment		—		8,830
Cosmetics, skincare, and heath supplements		2,569		2,626
Cookware, kitchen tools and gadgets		1,320		1,433
Hair appliances and accessories		732		719
All others		481		3,123
Total net product revenue		40,285		58,443
Managed SaaS		318		340
Total net revenue	$	40,603	$	58,783

	Nine Months Ended September 30,
	2019		2020
	(in thousands)
Environmental appliances (i.e., dehumidifiers and air conditioners)	$	52,757	$	83,103
Small home appliances		17,426		20,584
Personal protective equipment		—		14,557
Cosmetics, skincare, and heath supplements		8,346		8,989
Cookware, kitchen tools and gadgets		5,279		4,491
Hair appliances and accessories		2,590		3,636
All others		1,171		7,806
Total net product revenue		87,569		143,166
Managed SaaS		1,248		1,046
Total net revenue	$	88,817	$	144,212

Inventory (Tables)

9 Months Ended

Sep. 30, 2020

Inventory Disclosure [Abstract]

Schedule of Inventory

Inventory consisted of the following as of December 31, 2019 and September 30, 2020:

	December 31, 2019		September 30, 2020
	(in thousands)
Inventory on-hand	$	29,370	$	13,240
Inventory in-transit		6,842		5,551
Inventory	$	36,212	$	18,791

Prepaid Expenses and Other Current Assets (Tables)

9 Months Ended

Sep. 30, 2020

Prepaid Expense And Other Assets Current [Abstract]

Summary of Prepaids and Other Current Assets

Prepaids and other current assets consisted of the following as of December 31, 2019 and September 30, 2020:

	December 31, 2019		September 30, 2020
	(in thousands)
Prepaid inventory	$	2,195	$	2,566
Restricted cash		307		312
Prepaid insurance		1,967		2,081
Barter credits		—		889
Other		926		1,495
Prepaid and other current assets	$	5,395	$	7,343

Accrued and Other Current Liabilities (Tables)

9 Months Ended

Sep. 30, 2020

Accrued Liabilities And Other Liabilities [Abstract]

Schedule of Components of Accrued Expenses and Other Current Liabilities

Accrued expenses and other current liabilities consisted of the following as of December 31, 2019 and September 30, 2020:

	December 31, 2019		September 30, 2020
	(in thousands)
Accrued compensation costs	$	300	$	2,096
Accrual for insurance financing		1,031		1,512
Accrued professional fees and consultants		400		562
Accrued logistics costs		2,326		2,004
Product related accruals		1,518		2,428
Sales tax payable		507		485
Sales return reserve		456		534
Accrued commission		—		1,675
Seller note from acquisition		195		—
All other accruals		772		1,038
Accrued and other current liabilities	$	7,505	$	12,334

Credit Facility and Term Loans (Tables)

9 Months Ended

Sep. 30, 2020

Debt Disclosure [Abstract]

Schedule of Credit Facility and Term Loans

Credit facility and term loans consisted of the following as of December 31, 2019 and September 30, 2020:

	December 31, 2019			September 30, 2020
	(in thousands)
MidCap credit facility	$	22,953		$	14,184
Less: deferred debt issuance costs		(1,268	)		(749	)
Less discount associated with issuance of warrants		(28	)		(17	)
Total MidCap credit facility	$	21,657		$	13,418

Horizon term loan	$	15,000		$	14,000
Less: deferred debt issuance costs		(836	)		(628	)
Less discount associated with issuance of warrants		(697	)		(522	)
Total Horizon term loan		13,467			12,850
Less-current portion		(3,000	)		(6,500	)
Term loan-non current portion	$	10,467		$	6,350

Schedule of Interest Expense, Net

Interest expense, net consisted of the following for the three and nine months ended September 30, 2019 and 2020:

	Three Months Ended
	September 30, 2019			September 30, 2020
	(in thousands)
Interest expense	$	955		$	960
Interest income		(80	)		(26	)
Total Interest expense, net	$	875		$	934

	Nine Months Ended
	September 30, 2019			September 30, 2020
	(in thousands)
Interest expense	$	3,456		$	3,177
Interest income		(88	)		(57	)
Total Interest expense, net	$	3,368		$	3,120

Stock-Based Compensation (Tables)

9 Months Ended

Sep. 30, 2020

Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]

Summary of Stock Options Activity

The following is a summary of stock option activity during the nine months ended September 30, 2020:

	Options Outstanding
	Number of Options			Weighted- Average Exercise Price		Weighted- Average Remaining Contractual Life (years)		Aggregate Intrinsic Value
Balance—January 1, 2020		1,862,569		$	9.09		8.64	$	99
Options granted		—		$	—		—	$	—
Options exercised		(2,870	)	$	4.14		—	$	—
Options cancelled		(276,420	)	$	9.28		—	$	—
Balance—September 30, 2020		1,583,279		$	9.07		7.95	$	588
Exercisable as of September 30, 2020		1,062,960		$	8.90		7.84	$	508
Vested and expected to vest as of September 30, 2020		1,583,279		$	9.07		7.95	$	588

Summary of Restricted Stock Award Activity

A summary of restricted stock award activity within the Company’s equity plans and changes for the nine months ended September 30, 2020 is as follows:

Restricted Stock Awards	Shares			Weighted Average Grant- Date Fair Value
Nonvested at January 1, 2020		2,601,972		$	18.21
Granted		691,709		$	3.82
Vested		(416,953	)	$	14.38
Forfeited		(519,695	)	$	17.56
Nonvested at September 30, 2020		2,357,033		$	14.95

Summary of Total Stock-based Compensation Expense by Function

The following table summarizes the total stock-based compensation expense by function, including expense related to consultants, for the three and nine months ended September 30, 2020 and 2019:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2019		2020		2019		2020
	(in thousands)				(in thousands)
Sales and distribution expenses	$	2,421	$	748	$	5,218	$	1,761
Research and development expenses		1,920		778		3,952		3,231
General and administrative expenses		7,033		3,335		15,577		12,480
Total stock-based compensation expense	$	11,374	$	4,861	$	24,747	$	17,472

Net Loss per Share (Tables)

9 Months Ended

Sep. 30, 2020

Earnings Per Share [Abstract]

Schedule of Basic and Diluted Net Loss per Share

The following table sets forth the computation of basic and diluted net loss per share (in thousands, except per share data):

	Three Months Ended September 30,
	2019			2020
	(in thousands)
Net loss	$	(14,975	)	$	(805	)
Weighted-average number of shares outstanding used in computing net loss per share, basic and diluted		15,134,422			17,090,050
Net loss per share, basic and diluted	$	(0.99	)	$	(0.05	)

	Nine Months Ended September 30,
	2019			2020
	(in thousands)
Net loss	$	(40,243	)	$	(18,772	)
Weighted-average number of shares outstanding used in computing net loss per share, basic and diluted		12,971,641			15,903,517
Net loss per share, basic and diluted	$	(3.10	)	$	(1.18	)

Acquisition (Tables)

9 Months Ended

Sep. 30, 2020

Business Combinations [Abstract]

Preliminary Allocation of Purchase Price to Assets Acquired and Liabilities Assumed Based on Estimated Fair Values at Acquisition Date

The following presents the preliminary allocation of purchase price to the assets acquired and liabilities assumed, based on the estimated fair values at acquisition date:

	Total
	(in thousands)
Inventory	$	595
Intangible assets		3,111
Goodwill		12,734
Net assets acquired	$	16,440

Amounts Assigned to Goodwill and Major Intangibles Asset Classifications

The amounts assigned to goodwill and major intangible asset classifications were as follows:

	Amount Allocated		Useful life (in years)
	(in thousands)
Goodwill	$	12,734	n.a.
Trademarks		3,000	5
Non-competition agreement		100	<1
Transition services agreement		11	3
Net Intangible Assets		15,845

Pro Forma Information

The acquisition of the Truweo Assets is reflected in the following pro forma information as if the acquisition had occurred on January 1, 2019.

	Three months ended September 30,					Nine months ended September 30,
	2019			2020		2019			2020
	(in thousands)
Net revenue as reported	$	40,603		$	58,783	$	88,817		$	144,212
Truweo net revenue		1,920			2,515		5,182			11,155
Net revenue pro forma	$	42,523		$	61,298	$	93,999		$	155,367

Operating income (loss) as reported	$	(14,071	)	$	106	$	(36,799	)	$	(15,610	)
Truweo operating income		854			1,316		2,460			5,484
Operating income (loss) pro forma	$	(13,217	)	$	1,422	$	(34,339	)	$	(10,126	)

Organization and Description of Business - Additional Information (Details) - USD ($)		1 Months Ended	2 Months Ended	3 Months Ended		9 Months Ended		12 Months Ended
	Aug. 26, 2020	Aug. 31, 2020	Mar. 31, 2020	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019	Dec. 31, 2019
Organization And Description Of Business [Line Items]
Operating losses				$ 106,000	$ (14,071,000)	$ (15,610,000)	$ (36,799,000)	$ (54,300,000)
Accumulated deficit				(148,581,000)		(148,581,000)		(129,809,000)
Cash on hand				37,385,000		37,385,000		30,353,000
Outstanding borrowings from lenders				28,700,000		28,700,000		35,100,000
Available capacity on borrowings				$ 0		0		$ 0
Equity financing		$ 23,400,000				$ 125,400,000
Percentage of growth in net revenue				45.00%
Sales Revenue \| Sale of Products Online in U.S
Organization And Description Of Business [Line Items]
Percentage of revenue				90.00%
Key Manufacturing Partner \| China
Organization And Description Of Business [Line Items]
Percentage of manufacturing capacity reached			90.00%
Expected percentage of manufacturing over company's inventory						30.00%
Truweo Assets
Organization And Description Of Business [Line Items]
Date of completion of Acquisition	Aug. 26, 2020
Total consideration	$ 16,400,000
Total consideration paid by cash	14,000,000
Consideration paid in form of unsecured promissory note	2,400,000
Truweo Assets \| Promissory Note
Organization And Description Of Business [Line Items]
Consideration paid in form of unsecured promissory note	$ 2,400,000
Accrued interest rate per annum	8.00%
Principal amount and accrued interest payments	$ 600,000
First principal amount and accrued interest payments due date	Nov. 30, 2021
Second principal amount and accrued interest payments due date	Feb. 28, 2022
Third principal amount and accrued interest payments due date	May 31, 2022
Maturity date	Aug. 22, 2022
Follow-on Public Offering
Organization And Description Of Business [Line Items]
Issuance of common stock, including underwriter's over-allotment, net of offering costs and underwriter's discount, shares	3,860,710
Shares issued, price per share	$ 7.00
Net proceeds from sale of common stock	$ 23,400,000
Underwriting discounts and commissions	2,200,000
Other offering expenses	$ 1,400,000

Summary of Significant Accounting Policies - Net Revenue Disaggregated by Sales Channel and Geographic Region (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Disaggregation Of Revenue [Line Items]
Total net revenue	$ 58,783	$ 40,603	$ 144,212	$ 88,817
Direct
Disaggregation Of Revenue [Line Items]
Total net revenue	48,421	40,026	127,358	86,398
Wholesale
Disaggregation Of Revenue [Line Items]
Total net revenue	10,022	259	15,808	1,171
Managed SaaS
Disaggregation Of Revenue [Line Items]
Total net revenue	340	318	1,046	1,248
North America
Disaggregation Of Revenue [Line Items]
Total net revenue	58,777	40,584	144,170	88,731
North America \| Direct
Disaggregation Of Revenue [Line Items]
Total net revenue	48,415	40,007	127,316	86,312
North America \| Wholesale
Disaggregation Of Revenue [Line Items]
Total net revenue	10,022	259	15,808	1,171
North America \| Managed SaaS
Disaggregation Of Revenue [Line Items]
Total net revenue	340	318	1,046	1,248
Other
Disaggregation Of Revenue [Line Items]
Total net revenue	6	19	42	86
Other \| Direct
Disaggregation Of Revenue [Line Items]
Total net revenue	$ 6	$ 19	$ 42	$ 86

- Definition

Amount, excluding tax collected from customer, of revenue from satisfaction of performance obligation by transferring promised good or service to customer. Tax collected from customer is tax assessed by governmental authority that is both imposed on and concurrent with specific revenue-producing transaction, including, but not limited to, sales, use, value added and excise.

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+ Details

Summary of Significant Accounting Policies - Net Revenue Disaggregated by Product Categories (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Disaggregation Of Revenue [Line Items]
Total net revenue	$ 58,783	$ 40,603	$ 144,212	$ 88,817
Product Revenue
Disaggregation Of Revenue [Line Items]
Total net revenue	58,443	40,285	143,166	87,569
Product Revenue \| Environmental Appliances (i.e., Dehumidifiers and Air Conditioners)
Disaggregation Of Revenue [Line Items]
Total net revenue	35,241	27,083	83,103	52,757
Product Revenue \| Small Home Appliances
Disaggregation Of Revenue [Line Items]
Total net revenue	6,471	8,100	20,584	17,426
Product Revenue \| Cosmetics, Skincare, and Health Supplements
Disaggregation Of Revenue [Line Items]
Total net revenue	2,626	2,569	8,989	8,346
Product Revenue \| Personal Protective Equipment
Disaggregation Of Revenue [Line Items]
Total net revenue	8,830		14,557
Product Revenue \| Cookware, Kitchen Tools and Gadgets
Disaggregation Of Revenue [Line Items]
Total net revenue	1,433	1,320	4,491	5,279
Product Revenue \| Hair Appliances and Accessories
Disaggregation Of Revenue [Line Items]
Total net revenue	719	732	3,636	2,590
Product Revenue \| All Others
Disaggregation Of Revenue [Line Items]
Total net revenue	3,123	481	7,806	1,171
Managed SaaS
Disaggregation Of Revenue [Line Items]
Total net revenue	$ 340	$ 318	$ 1,046	$ 1,248

Summary of Significant Accounting Policies - Additional Information (Details) - USD ($) $ in Millions	Sep. 30, 2020	Dec. 31, 2019
Accounting Standards Update 2018-07 [Member]
Significant Accounting Policies [Line Items]
Change in Accounting Principle, Accounting Standards Update, Adopted [true false]	true
Change in Accounting Principle, Accounting Standards Update, Adoption Date	Jan. 01, 2020
Change in Accounting Principle, Accounting Standards Update, Immaterial Effect [true false]	true
Accounting Standards Update 2018-02 [Member]
Significant Accounting Policies [Line Items]
Change in Accounting Principle, Accounting Standards Update, Adopted [true false]	true
Change in Accounting Principle, Accounting Standards Update, Adoption Date	Jan. 01, 2020
Change in Accounting Principle, Accounting Standards Update, Immaterial Effect [true false]	true
Accounting Standards Update 2018-13 [Member]
Significant Accounting Policies [Line Items]
Change in Accounting Principle, Accounting Standards Update, Adopted [true false]	true
Change in Accounting Principle, Accounting Standards Update, Adoption Date	Jan. 01, 2020
Change in Accounting Principle, Accounting Standards Update, Immaterial Effect [true false]	true
Level 1
Significant Accounting Policies [Line Items]
Cash and restricted cash	$ 37.8	$ 30.8

- Definition

Indicates (true false) whether accounting standards update was adopted.

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-Paragraph 5
-URI http://asc.fasb.org/extlink&oid=120240428&loc=SL120254526-165497

Reference 17: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 65
-Paragraph 8
-Subparagraph (a)

+ Details

Inventory - Schedule of Inventory (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Inventory Disclosure [Abstract]
Inventory on-hand	$ 13,240	$ 29,370
Inventory in-transit	5,551	6,842
Inventory	$ 18,791	$ 36,212

Inventory - Additional Information (Details) - USD ($) $ in Millions	Sep. 30, 2020	Dec. 31, 2019
Inventory Disclosure [Abstract]
Inventory on-hand held by Amazon	$ 3.1	$ 4.7

Prepaid Expenses and Other Current Assets - Summary of Prepaids and Other Current Assets (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Prepaid Expense And Other Assets Current [Abstract]
Prepaid inventory	$ 2,566	$ 2,195
Restricted cash	312	307
Prepaid insurance	2,081	1,967
Barter credits	889
Other	1,495	926
Prepaid and other current assets	$ 7,343	$ 5,395

Accrued and Other Current Liabilities - Schedule of Components of Accrued Expenses and Other Current Liabilities (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Accrued Liabilities And Other Liabilities [Abstract]
Accrued compensation costs	$ 2,096	$ 300
Accrual for insurance financing	1,512	1,031
Accrued professional fees and consultants	562	400
Accrued logistics costs	2,004	2,326
Product related accruals	2,428	1,518
Sales tax payable	485	507
Sales return reserve	534	456
Accrued commission	1,675
Seller note from acquisition		195
All other accruals	1,038	772
Accrued and other current liabilities	$ 12,334	$ 7,505

Credit Facility and Term Loans - Schedule of Credit Facility and Term Loans (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019	Sep. 30, 2019	Dec. 31, 2018
Debt Instrument [Line Items]
Total MidCap credit facility	$ 13,418	$ 21,657
Less: deferred debt issuance costs	(500)		$ (200)
Less-current portion	(6,500)	(3,000)
Term loan-non current portion	6,350	10,467
Horizon Term Loan
Debt Instrument [Line Items]
Horizon term loan	14,000	15,000
Less: deferred debt issuance costs	(628)	(836)		$ (1,000)
Less discount associated with issuance of warrants	(522)	(697)
Total Horizon term loan	12,850	13,467
Less-current portion	(6,500)	(3,000)
Term loan-non current portion	6,350	10,467
Mid Cap Credit Facility
Debt Instrument [Line Items]
MidCap credit facility	14,184	22,953
Less: deferred debt issuance costs	(749)	(1,268)
Less discount associated with issuance of warrants	(17)	(28)
Total MidCap credit facility	$ 13,418	$ 21,657

Credit Facility and Term Loans - Additional Information (Details) - USD ($)		3 Months Ended		9 Months Ended		12 Months Ended
	Nov. 23, 2018	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019	Dec. 31, 2018	Dec. 31, 2019
Debt Instrument [Line Items]
Available balance of credit facility		$ 0		$ 0			$ 0
Interest expense of credit facilities		400,000	$ 400,000	1,600,000	$ 1,900,000
Deferred debt issuance costs		500,000	200,000	500,000	200,000
Borrowings, outstanding		28,700,000		28,700,000			35,100,000
Interest expense		960,000	955,000	3,177,000	3,456,000
Term Loan
Debt Instrument [Line Items]
Credit facility maximum borrowing amount						$ 15,000,000
Debt instrument maturity month and year						2023-01
Borrowings, outstanding		14,000,000		14,000,000			15,000,000
Interest expense		500,000	500,000	1,500,000	1,500,000
Amortization of debt issuance costs		100,000	$ 100,000	400,000	$ 400,000
Horizon Term Loan
Debt Instrument [Line Items]
Debt offset against and expense over the term						5 years
Deferred debt issuance costs		628,000		$ 628,000		$ 1,000,000	836,000
Warrants term						10 years
Fair value on issuance						$ 900,000
Debt discount						$ 900,000
Horizon Term Loan \| Common Stock
Debt Instrument [Line Items]
Warrants to purchase shares						76,923
Warrants to purchase shares, exercise price						$ 15.60
London Interbank Offered Rate ("LIBOR") \| Term Loan
Debt Instrument [Line Items]
Debt instrument, basis spread on variable rate						9.90%
Description of variable rate basis				one-month LIBOR
London Interbank Offered Rate ("LIBOR") \| Term Loan \| Minimum
Debt Instrument [Line Items]
Potential additional interest						2.50%
Mid Cap Prior Credit Facility
Debt Instrument [Line Items]
Unamortized debt issuance costs						$ 700,000
Mid Cap Credit Facility
Debt Instrument [Line Items]
Credit facility maximum borrowing amount	$ 25,000,000
Additional increase in borrowing amount	$ 50,000,000
Line of credit facility, unused capacity, commitment fee percentage	0.50%
Line of credit facility, minimum liquidity financial covenant requirement in cash on hand	$ 5,000,000
Debt issuance costs						$ 1,300,000
Debt offset against and expense over the term						3 years
Line of credit, outstanding		14,200,000		$ 14,200,000			23,000,000
Available balance of credit facility		$ 400,000		$ 400,000			$ 0
Current borrowing capacity						$ 25,000,000
Mid Cap Credit Facility \| London Interbank Offered Rate ("LIBOR")
Debt Instrument [Line Items]
Debt instrument, basis spread on variable rate	5.75%
Credit Facility and Term Loan
Debt Instrument [Line Items]
Line of credit facility covenant minimum liquidity requirement in unrestricted cash						$ 5,000,000

Credit Facility and Term Loans - Schedule of Interest Expense, Net (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Debt Disclosure [Abstract]
Interest expense	$ 960	$ 955	$ 3,177	$ 3,456
Interest income	(26)	(80)	(57)	(88)
Total Interest expense, net	$ 934	$ 875	$ 3,120	$ 3,368

Stock-Based Compensation - Additional Information (Details) - USD ($) $ / shares in Units, $ in Thousands			3 Months Ended			6 Months Ended	9 Months Ended
	May 08, 2020	Mar. 12, 2020	Sep. 30, 2020	Jun. 30, 2020	Sep. 30, 2019	Jun. 30, 2020	Sep. 30, 2020	Sep. 30, 2019
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Options exercisable period							10 years
Total unrecognized compensation expense related to unvested options			$ 6,200				$ 6,200
Total unrecognized compensation expense related to unvested options, expects to recognize over estimated weighted average period							1 year 10 days
Options granted to purchase							0	195,975
Cancellation of options to purchase common stock							276,420	165,622
Options exercised							2,870	487
Share based compensation expense			$ 4,861		$ 11,374		$ 17,472	$ 24,747
Restricted Stock
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Total unrecognized compensation expense related to unvested options, expects to recognize over estimated weighted average period							7 months 13 days
Shares forfeited	134,366	371,329	14,000				519,695
Share based compensation expense				$ 3,300	$ 9,800	$ 12,900		$ 20,300
Restricted shares vested							416,953	0
Weighted Average Grant-Date Fair Value, Granted			$ 6.34				$ 3.82
Total unrecognized compensation expense related to unvested restricted shares			$ 6,500				$ 6,500
Shares, Granted							691,709
Share-based Compensation Award, Tranche One
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Options vesting period							4 years
Share-based Compensation Award, Tranche One \| Vesting on First Anniversary
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Options vesting percentage							25.00%
Share-based Compensation Award, Tranche One \| Vesting Over Succeeding 36 Months
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Options vesting period							36 months
Options vesting percentage							75.00%
Share-based Compensation Award, Tranche Two
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Options vesting period							3 years
Share-based Compensation Award, Tranche Two \| Vesting on First Anniversary
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Options vesting percentage							33.33%
Share-based Compensation Award, Tranche Two \| Vesting Over Succeeding 24 Months
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Options vesting period							24 months
Options vesting percentage							66.66%
Mohawk 2014 Plan
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Shares reserved for future issuance			56,327				56,327
Mohawk 2018 Plan
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Shares reserved for future issuance			1,002,522				1,002,522
Mohawk 2018 Plan \| Restricted Stock
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Shares, Granted							400,000
2019 Equity Plan
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Shares reserved for future issuance			0				0
2019 Equity Plan \| Restricted Stock
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Percentage of restricted shares issued and outstanding							70.00%
2019 Equity Plan \| Share-based Compensation Award, Tranche One \| Restricted Stock
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Award vesting date							Mar. 13, 2020
2019 Equity Plan \| Share-based Compensation Award, Tranche Two \| Restricted Stock
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Award vesting date							Dec. 15, 2020
2019 Equity Plan \| Share-based Compensation Award, Tranche Three \| Restricted Stock
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Award vesting date							Jan. 02, 2021
2019 Equity Plan \| Share-based Compensation Award, Tranche Four \| Restricted Stock
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Award vesting date							Jul. 01, 2021

Stock-Based Compensation - Summary of Stock Option Activity (Details) - USD ($) $ / shares in Units, $ in Thousands	9 Months Ended		12 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Dec. 31, 2019
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]
Options Outstanding, Number of Options, Shares, Beginning Balance	1,862,569
Options Outstanding, Number of Options, Granted, Shares	0	195,975
Options Outstanding, Number of Options, Exercised, Shares	(2,870)	(487)
Options Outstanding, Number of Options, Cancelled, Shares	(276,420)	(165,622)
Options Outstanding, Number of Options, Shares, Ending Balance	1,583,279		1,862,569
Options Outstanding, Number of Options Exercisable, Shares, as of September 30, 2020	1,062,960
Options Outstanding, Number of Options, Vested and expected to vest, Shares as of September 30, 2020	1,583,279
Options Outstanding, Weighted Average Exercise Price, Beginning Balance	$ 9.09
Options Outstanding, Weighted Average Exercise Price, Exercised	4.14
Options Outstanding, Weighted Average Exercise Price, Cancelled	9.28
Options Outstanding, Weighted Average Exercise Price, Ending Balance	9.07		$ 9.09
Options Outstanding, Weighted Average Exercise Price, Exercisable as of September 30, 2020	8.90
Options Outstanding, Weighted Average Exercise Price, Vested and expected to vest as of September 30, 2020	$ 9.07
Options Outstanding, Weighted Average Remaining Contractual Life (Years)	7 years 11 months 12 days		8 years 7 months 20 days
Options Outstanding, Weighted Average Remaining Contractual Life (Years), Exercisable as of September 30, 2020	7 years 10 months 2 days
Options Outstanding, Weighted Average Remaining Contractual Life (Years), Vested and expected to vest as of September 30, 2020	7 years 11 months 12 days
Options Outstanding, Aggregate Intrinsic Value, Beginning Balance	$ 99
Options Outstanding, Aggregate Intrinsic Value, Ending Balance	588		$ 99
Options Outstanding, Aggregate Intrinsic Value, Exercisable as of September 30, 2020	508
Options Outstanding, Aggregate Intrinsic Value, Vested and expected to vest as of September 30, 2020	$ 588

Stock-Based Compensation - Summary of Restricted Stock Award Activity (Details) - Restricted Stock - $ / shares			3 Months Ended	9 Months Ended
	May 08, 2020	Mar. 12, 2020	Sep. 30, 2020	Sep. 30, 2020	Sep. 30, 2019
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Shares, Nonvested at January 1, 2020				2,601,972
Shares, Granted				691,709
Shares, Vested				(416,953)	0
Shares, Forfeited	(134,366)	(371,329)	(14,000)	(519,695)
Shares, Nonvested at September 30, 2020			2,357,033	2,357,033
Weighted Average Grant-Date Fair Value, Nonvested at January 1, 2020				$ 18.21
Weighted Average Grant-Date Fair Value, Granted			$ 6.34	3.82
Weighted Average Grant-Date Fair Value, Vested				14.38
Weighted Average Grant-Date Fair Value, Forfeited				17.56
Weighted Average Grant-Date Fair Value, Nonvested at September 30, 2020			$ 14.95	$ 14.95

Stock-Based Compensation - Summary of Total Stock-based Compensation Expense by Function (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Share based compensation expense	$ 4,861	$ 11,374	$ 17,472	$ 24,747
Sales and Distribution Expenses
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Share based compensation expense	748	2,421	1,761	5,218
Research and Development Expense
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Share based compensation expense	778	1,920	3,231	3,952
General and Administrative Expense
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Share based compensation expense	$ 3,335	$ 7,033	$ 12,480	$ 15,577

Net Loss Per Share - Schedule of Basic and Diluted Net Loss per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Earnings Per Share [Abstract]
Net loss	$ (805)	$ (14,975)	$ (18,772)	$ (40,243)
Weighted-average number of shares outstanding used in computing net loss per share, basic and diluted	17,090,050	15,134,422	15,903,517	12,971,641
Net loss per share, basic and diluted	$ (0.05)	$ (0.99)	$ (1.18)	$ (3.10)

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

+ References

+ Details

Commitments and Contingencies - Additional Information (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Commitments And Contingencies Disclosure [Abstract]
Sales tax payable current	$ 485	$ 507

Acquisition - Additional Information (Details) - Truweo Assets $ in Millions	Aug. 26, 2020 USD ($)
Business Acquisition [Line Items]
Date of completion of Acquisition	Aug. 26, 2020
Total consideration	$ 16.4
Total consideration paid by cash	14.0
Consideration paid in form of unsecured promissory note	2.4
Promissory Note
Business Acquisition [Line Items]
Consideration paid in form of unsecured promissory note	$ 2.4
Accrued interest rate per annum	8.00%
Principal amount and accrued interest payments	$ 0.6
First principal amount and accrued interest payments due date	Nov. 30, 2021
Second principal amount and accrued interest payments due date	Feb. 28, 2022
Third principal amount and accrued interest payments due date	May 31, 2022
Maturity date	Aug. 22, 2022

Acquisition - Preliminary Allocation of Purchase Price to Assets Acquired and Liabilities Assumed Based on Estimated Fair Values at Acquisition Date (Details) - Truweo Assets $ in Thousands	Aug. 26, 2020 USD ($)
Business Acquisition [Line Items]
Inventory	$ 595
Intangible assets	3,111
Goodwill	12,734
Net assets acquired	$ 16,440

Acquisition - Amounts Assigned to Goodwill and Major Intangibles Asset Classifications (Details) - Truweo Assets $ in Thousands	Aug. 26, 2020 USD ($)
Business Acquisition [Line Items]
Goodwill	$ 12,734
Intangible assets	3,111
Net Intangible Assets	15,845
Trademarks
Business Acquisition [Line Items]
Intangible assets	$ 3,000
Useful life (in years)	5 years
Non-Competition Agreement
Business Acquisition [Line Items]
Intangible assets	$ 100
Non-Competition Agreement \| Maximum [Member]
Business Acquisition [Line Items]
Useful life (in years)	1 year
Transition Services Agreement
Business Acquisition [Line Items]
Intangible assets	$ 11
Useful life (in years)	3 years

Acquisition - Pro Forma Information (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019	Dec. 31, 2019
Business Acquisition [Line Items]
Net revenue as reported	$ 58,783	$ 40,603	$ 144,212	$ 88,817
Operating losses	106	(14,071)	(15,610)	(36,799)	$ (54,300)
Truweo
Business Acquisition [Line Items]
Truweo net revenue	2,515	1,920	11,155	5,182
Net revenue pro forma	61,298	42,523	155,367	93,999
Truweo operating income	1,316	854	5,484	2,460
Operating income (loss) pro forma	$ 1,422	$ (13,217)	$ (10,126)	$ (34,339)

- Definition

+ References

+ Details