0001530979-24-000057 | 10-Q | XBRL Viewer

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Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares	Mar. 31, 2024	Dec. 31, 2023
Stockholders’ equity
Preferred stock, par value (in dollars per share)	$ 0.0001	$ 0.0001
Preferred stock authorized (in shares)	20,000,000	20,000,000
Preferred stock, shares issued (in shares)	0	0
Preferred stock, shares outstanding (in shares)	0	0
Common stock, par value (in dollars per share)	$ 0.0001	$ 0.0001
Common stock authorized (in shares)	1,000,000,000	1,000,000,000
Common stock issued (in shares)	97,168,703	95,868,421
Common stock outstanding (in shares)	97,168,703	95,868,421

Stock-Based Compensation

3 Months Ended

Mar. 31, 2024

Share-Based Payment Arrangement [Abstract]

Stock-Based Compensation

Stock Options

The following table summarizes the stock option activity:


	Number of Options	Weighted Average Exercise Price



















Outstanding at December 31, 2023	13,315,796	$	5.25
Granted	—	$	—
Exercised	(126,000)	$	4.03
Forfeited/Cancelled	(28,541)	$	5.32
Outstanding at March 31, 2024	13,161,255	$	5.26

2021 Equity Incentive Plan

In April 2021, the Company’s board of directors adopted the Company’s 2021 Equity Incentive Plan (the “2021 Plan”), which became effective in connection with the IPO. All equity-based awards granted on or after the effectiveness of the 2021 Plan are granted under the 2021 Plan. The 2021 Plan provides for grants of incentive stock options (“ISOs”) within the meaning of Section 422 of the Internal Revenue Code of 1986, as amended (the “Code”), to the Company’s employees and its parent and subsidiary corporations’ employees, and for the grant of nonstatutory stock options (“NSOs”), stock appreciation rights, restricted stock awards, restricted stock units (“RSUs”) awards, performance awards and other forms of awards to the Company’s employees, directors and consultants and any of its affiliates’ employees and consultants. Initially, the maximum number of shares of the Company’s common stock that may be issued under its 2021 Plan will not exceed 25,025,580 shares of the Company’s common stock. In addition, the number of shares of the Company’s common stock reserved for issuance under its 2021 Plan will automatically increase on January 1 of each year for a period of ten years, beginning on January 1, 2022 and continuing through January 1, 2031, in an amount equal to (1) 4% of the total number of shares of the Company’s common stock outstanding on December 31 of the immediately preceding year, or (2) a lesser number of shares determined by the Company’s board of directors prior to the date of the increase. On January 1, 2024, 3,825,379 additional shares were reserved for issuance pursuant to this provision. The maximum number of shares of the Company’s common stock that may be issued on the exercise of ISOs under its 2021 Plan is 75,100,000 shares.

The following table summarizes the RSU activity:


	Number of Shares		Weighted Average Grant Date Fair Value Per Share
	Non-Employee Directors	Directors, Officers and Employees	Non-Employee Directors		Directors, Officers and Employees
Unvested RSUs at December 31, 2023	957,199	7,299,254	$	2.19	$	2.38

Granted	60,626	4,616,500	$	3.30	$	3.51
Vested	(15,156)	(1,159,126)	$	3.30	$	2.35
Forfeited	—	(41,074)	$	—	$	2.29
Unvested RSUs at March 31, 2024	1,002,669	10,715,554	$	2.24	$	2.87

As of March 31, 2024, there was $30.5 million of unrecognized stock-based compensation expense related to unvested RSUs, which is expected to be recognized over a weighted-average period of 3.1 years.

2021 Employee Stock Purchase Plan

In April 2021, the Company’s board of directors adopted the Company’s 2021 Employee Stock Purchase Plan (the “2021 ESPP”). The Company authorized the issuance of 1,175,000 shares of common stock under the 2021 ESPP. In addition, the number of shares available for issuance under the 2021 ESPP will be annually increased on January 1 of each year for a period of ten years, beginning on January 1, 2022 and continuing through January 1, 2031 by the lesser of (i) 1% of the total number of shares of common stock outstanding on December 31 of the immediately preceding year; and (ii) 3,525,000 shares, except before the date of any such increase, the Company’s board of directors may determine that such increase will be less than the amount set forth in clauses (i) and (ii). On January 1, 2024, 956,344 additional shares were reserved for issuance pursuant to this provision. Subject to any limitations contained therein, the 2021 ESPP allows eligible employees to contribute (in the form of payroll deductions or otherwise to the extent permitted by the administrator) an amount established by the administrator from time to time in its discretion to purchase common stock at a discounted price per share.

Under the 2021 ESPP, eligible employees are granted the right to purchase shares of common stock at the lower of 85% of the fair value at the time of grant or 85% of the fair value at the time of exercise. The right to purchase shares of common stock is granted in May and November of each year for an offering period of approximately six months. For the three months ended March 31, 2024, no shares were purchased under the 2021 ESPP. As of March 31, 2024, the Company had 3,712,738 remaining authorized shares available for purchase.

The following table summarizes the key input assumptions used in the Black-Scholes option-pricing model to estimate the grant-date fair value of the 2021 ESPP:


	For the three months ended March 31, 2024
Expected life of options (in years)	0.50
Expected stock price volatility	69.20		%	—	86.19%
Risk free interest rate	5.36		%	—	5.43%
Expected dividend yield	—%
Weighted average grant-date fair value per share	$	0.56		—	$0.67

2023 Inducement Plan

In March 2023, the Company's Compensation Committee adopted the 2023 Inducement Plan (the “Inducement Plan”). The Inducement Plan reserved 4,000,000 shares of the Company’s common stock for issuance under the Inducement Plan to individuals who satisfy the standards for inducement grants under the relevant Nasdaq Stock Market rules. As of March 31, 2024, there were 275,083 shares available for future grant under the Inducement Plan.

Stock-Based Compensation Expense

Stock-based compensation expense related to RSU awards, 2021 ESPP purchases and stock options, as applicable, are as follows:


	For the three months ended March 31,
	2024		2023
(In thousands)
Selling, general and administrative	$	2,413	$	3,713
Research and development	110		59
Total stock-based compensation expense	$	2,523	$	3,772

Restructuring

3 Months Ended

Mar. 31, 2024

Restructuring and Related Activities [Abstract]

Restructuring

Transformation Initiative

In 2023, the Company executed a broad-based Transformation Initiative designed to build the Honest brand and drive growth in higher-margin areas of the portfolio, strengthen the Company’s cost structure, drive focus on the most productive areas of the Company's business, deliver greater impact from brand-building investments, and improve executional excellence across the enterprise. The restructuring element of the Transformation Initiative was substantially completed by December 31, 2023.

For the three months ended March 31, 2024, the Company did not incur any restructuring costs.

Changes in accrued expenses as of March 31, 2024 relating to the Transformation Initiative were:


	Restructuring Costs
	Employee-Related Costs(1)		Asset-Related Costs		Contract Terminations		Inventory Reserves		Total
Balance at December 31, 2023	$	356	$	—	$	—	$	2,581	$	2,937
Charges (adjustments)	—		—		—		—		—
Cash payments	(105)		—		—		—		(105)
Non-cash asset write-offs	—		—		—		(2,098)		(2,098)
Balance at March 31, 2024	$	251	$	—	$	—	$	483	$	734

___________

(1) Included in accrued expenses as of March 31, 2024. Refer to Note 6, "Accrued Expenses" included elsewhere in these condensed consolidated financial statements.

The Company records costs associated with the restructuring initiatives once the relevant accounting criteria have been met. Accrued restructuring costs of $0.3 million related to severance costs as of March 31, 2024 are expected to result in cash expenditures funded from cash provided by operations in future periods and is included in accrued expenses on the condensed consolidated balance sheets.

Summary of Significant Accounting Policies (Details) $ in Millions	3 Months Ended
	Mar. 31, 2024 USD ($) segment	Dec. 31, 2023 USD ($)
Accounting Policies [Abstract]
Number of operating segments \| segment	1
Allowance for doubtful accounts \| $	$ 0.4	$ 0.4

Stock-Based Compensation - 2021 Equity Incentive Plan (Details) - 2021 Equity Incentive Plan - shares	1 Months Ended
	Apr. 30, 2021	Jan. 01, 2024
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Maximum number of shares that may be issued (in shares)	25,025,580
Period to increase available shares for issuance	10 years
Percentage of total number of shares outstanding	4.00%
Number of common stock authorized to be issued (in shares)		3,825,379
Incentive Stock Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Maximum number of shares that may be issued (in shares)	75,100,000

- Definition

Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table.

+ References

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+ Details

Accrued Expenses (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Schedule of Payables and Accruals [Line Items]
Payroll and payroll related expenses	$ 4,132	$ 8,007
Accrued inventory purchases	6,125	9,368
Accrued returns	238	269
Accrued rent	8,212	8,105
Accrued restructuring	251	356
Other accrued expenses	7,458	6,104
Total accrued expenses	26,416	32,209
Chief Executive Officer
Schedule of Payables and Accruals [Line Items]
Payroll and payroll related expenses	$ 900
Chief Financial Officer
Schedule of Payables and Accruals [Line Items]
Payroll and payroll related expenses		$ 1,200

Stock-Based Compensation - Stock-based Compensation Expense (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total stock-based compensation expense	$ 2,523	$ 3,772
Selling, general and administrative
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total stock-based compensation expense	2,413	3,713
Research and development
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total stock-based compensation expense	$ 110	$ 59

Leases

3 Months Ended

Mar. 31, 2024

Leases [Abstract]

Leases

The Company’s lease portfolio includes both real estate and non-real estate type leases which are accounted for as either finance or operating leases. Real estate leases generally include office and warehouse facilities and non-real estate leases generally include office equipment and machinery. The Company determines if a contract is or contains a lease at inception. The Company’s leases have remaining lease terms of less than one to 6.5 years.

The components of lease expense were as follows (in thousands):


	For the three months ended March 31,
	2024		2023
Finance lease expense:
Amortization	$	7	$	16

Operating lease expense:
Operating lease expense(1)	1,792		1,792
Sublease income	(501)		(501)
Total lease expense, net	$	1,298	$	1,307

______________________

(1) Represents the straight-line lease expense of operating leases, inclusive of amortization of ROU assets and the interest component of operating lease liabilities.

Based on the nature of the Right-Of-Use (“ROU”) assets, amortization of finance leases and amortization of operating ROU assets, operating lease expense and other lease expense are recorded within either cost of revenue or selling, general and administrative expenses and interest on finance lease liabilities is recorded within interest and other expense, net in the condensed consolidated statements of comprehensive loss.

The following tables set forth the amount of lease assets and lease liabilities included in the Company’s condensed consolidated balance sheets (in thousands):

Assets

Financial Statement Line Item

March 31, 2024

Finance lease assets

Property and equipment, net

Operating lease assets

Operating lease right-of-use asset

22,090

Total lease assets

22,098

Liabilities

Current

Finance lease liabilities

Accrued expenses

Operating lease liabilities

Accrued expenses

8,212

Non-current

Operating lease liabilities

Operating lease liabilities, net of current portion

19,642

Total lease liabilities

27,867

Supplemental information related to the Company’s leases for the three months ended March 31, 2024 was as follows:


Weighted-average remaining lease term (in years)
Finance leases	0.5
Operating leases	3.3
Weighted-average discount rate
Finance leases	3.00		%
Operating leases	2.29		%
Cash paid for amounts included in the measurement of lease liabilities (in thousands)

Operating cash flows used in operating leases	$	1,988
Finance cash flows used in finance leases	$	10

The Company did not have any non-cash ROU assets obtained in exchange for lease liabilities during the three months ended March 31, 2024 for either finance or operating leases.

Leases

The components of lease expense were as follows (in thousands):


	For the three months ended March 31,
	2024		2023
Finance lease expense:
Amortization	$	7	$	16

Operating lease expense:
Operating lease expense(1)	1,792		1,792
Sublease income	(501)		(501)
Total lease expense, net	$	1,298	$	1,307

______________________

(1) Represents the straight-line lease expense of operating leases, inclusive of amortization of ROU assets and the interest component of operating lease liabilities.

The following tables set forth the amount of lease assets and lease liabilities included in the Company’s condensed consolidated balance sheets (in thousands):

Assets

Financial Statement Line Item

March 31, 2024

Finance lease assets

Property and equipment, net

Operating lease assets

Operating lease right-of-use asset

22,090

Total lease assets

22,098

Liabilities

Current

Finance lease liabilities

Accrued expenses

Operating lease liabilities

Accrued expenses

8,212

Non-current

Operating lease liabilities

Operating lease liabilities, net of current portion

19,642

Total lease liabilities

27,867

Supplemental information related to the Company’s leases for the three months ended March 31, 2024 was as follows:


Weighted-average remaining lease term (in years)
Finance leases	0.5
Operating leases	3.3
Weighted-average discount rate
Finance leases	3.00		%
Operating leases	2.29		%
Cash paid for amounts included in the measurement of lease liabilities (in thousands)

Operating cash flows used in operating leases	$	1,988
Finance cash flows used in finance leases	$	10

The Company did not have any non-cash ROU assets obtained in exchange for lease liabilities during the three months ended March 31, 2024 for either finance or operating leases.

Condensed Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Income Statement [Abstract]
Revenue	$ 86,217	$ 83,388
Cost of revenue	54,335	63,186
Gross profit	31,882	20,202
Operating expenses
Selling, general and administrative	22,420	25,817
Marketing	9,096	10,234
Restructuring	0	1,350
Research and development	1,681	1,459
Total operating expenses	33,197	38,860
Operating loss	(1,315)	(18,658)
Interest and other income (expense), net	(63)	(189)
Loss before provision for income taxes	(1,378)	(18,847)
Income tax provision	25	20
Net loss	$ (1,403)	$ (18,867)
Net loss per share attributable to common stockholders:
Basic (in dollars per share)	$ (0.01)	$ (0.20)
Diluted (in dollars per share)	$ (0.01)	$ (0.20)
Weighted-average shares used in computing net loss per share attributable to common stockholders:
Basic (in shares)	96,273,168	93,106,075
Diluted (in shares)	96,273,168	93,106,075
Other comprehensive income (loss)
Unrealized gain (loss) on short-term investments, net of taxes	$ 0	$ 19
Comprehensive loss	$ (1,403)	$ (18,848)

Net Income (Loss) per Share Attributable to Common Stockholders - Computation of Basic and Diluted Net Income (Loss) Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Numerator:
Net loss	$ (1,403)	$ (18,867)
Net loss attributable to common stockholders - basic	(1,403)	(18,867)
Net loss attributable to common stockholders - diluted	$ (1,403)	$ (18,867)
Denominator:
Weighted average shares of common stock outstanding - basic (in shares)	96,273,168	93,106,075
Weighted average shares of common stock outstanding - diluted (in shares)	96,273,168	93,106,075
Net loss per share, attributable to common shareholders:
Basic (in dollars per share)	$ (0.01)	$ (0.20)
Diluted (in dollars per share)	$ (0.01)	$ (0.20)

Net Income (Loss) per Share Attributable to Common Stockholders

3 Months Ended

Mar. 31, 2024

Earnings Per Share [Abstract]

Net Income (Loss) per Share Attributable to Common Stockholders

The Company computes net income (loss) per share using the two-class method required for participating securities. The two-class method requires net income be allocated between common stock and participating securities based upon their respective rights to receive dividends as if all income for the period had been distributed. In periods where the Company has net losses, losses are not allocated to participating securities as they are not required to fund the losses.

Basic net income (loss) attributable to common stockholders per share is calculated by dividing net income (loss) attributable to common stockholders by the weighted-average number of shares of common stock outstanding. The Company computes diluted net income per share under a two-class method where income is reallocated between common stock, potential common stock and participating securities. Diluted net income (loss) per share attributable to common stockholders adjusts the basic net income (loss) per share attributable to common stockholders and the weighted-average number of shares of common stock outstanding for the potentially dilutive impact of stock options using the treasury stock method.

The following table sets forth the computation of the Company’s basic and diluted net loss per share attributable to common stockholders:


	For the three months ended March 31,
(In thousands, except for share and per share values)	2024		2023
Numerator:
Net loss	$	(1,403)	$	(18,867)



Net loss attributable to common stockholders - basic and diluted	$	(1,403)	$	(18,867)



Denominator:
Weighted average shares of common stock outstanding - basic and diluted	96,273,168		93,106,075




Net loss per share, attributable to common shareholders:
Basic and diluted	$	(0.01)	$	(0.20)

The following potentially dilutive shares were excluded from the computation of diluted net income (loss) per share because including them would have been antidilutive:


	For the three months ended March 31,
	2024	2023

Stock options to purchase common stock	13,161,255	14,784,486
Unvested restricted stock units	11,718,223	7,603,414
Employee stock purchase plan	71,142	39,157
Total	24,950,620	22,427,057

Stock-Based Compensation - 2021 Employee Stock Purchase Plan (Details) - shares	1 Months Ended	3 Months Ended
	Apr. 30, 2021	Mar. 31, 2024	Jan. 01, 2024
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Offering period	6 months
Employee stock purchase plan \| 2021 Employee Stock Purchase Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of common stock authorized to be issued (in shares)	1,175,000		956,344
Period to increase available shares for issuance	10 years
Percentage of total number of shares outstanding	1.00%
Additional shares authorized (in shares)	3,525,000
Purchase price of common stock in percent	85.00%
Shares issued through ESPP (in shares)
Number of shares available for purchase (in shares)		3,712,738

Nature of Business	3 Months Ended
Nature of Business	Mar. 31, 2024
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Nature of Business	Nature of BusinessThe Honest Company, Inc. (the “Company”) was incorporated in the State of California on July 19, 2011 and on May 23, 2012 was re-incorporated in the State of Delaware under the same name. The Company is a personal care company dedicated to creating clean- and sustainably-designed products.

Restructuring - Reserve (Details) $ in Thousands	3 Months Ended
Restructuring - Reserve (Details) $ in Thousands	Mar. 31, 2024 USD ($)
Transformation Initiative
Restructuring Reserve [Roll Forward]
Balance at December 31, 2023	$ 2,937
Restructuring	0
Cash payments	(105)
Non-cash asset write-offs	(2,098)
Balance at March 31, 2024	734
Employee-Related Costs
Restructuring Reserve [Roll Forward]
Balance at March 31, 2024	300
Employee-Related Costs \| Transformation Initiative
Restructuring Reserve [Roll Forward]
Balance at December 31, 2023	356
Restructuring	0
Cash payments	(105)
Non-cash asset write-offs	0
Balance at March 31, 2024	251
Asset-Related Costs \| Transformation Initiative
Restructuring Reserve [Roll Forward]
Balance at December 31, 2023	0
Restructuring	0
Cash payments	0
Non-cash asset write-offs	0
Balance at March 31, 2024	0
Contract Terminations \| Transformation Initiative
Restructuring Reserve [Roll Forward]
Balance at December 31, 2023	0
Restructuring	0
Cash payments	0
Non-cash asset write-offs	0
Balance at March 31, 2024	0
Inventory Reserves \| Transformation Initiative
Restructuring Reserve [Roll Forward]
Balance at December 31, 2023	2,581
Restructuring	0
Cash payments	0
Non-cash asset write-offs	(2,098)
Balance at March 31, 2024	$ 483

Fair Value Measurements (Tables)

3 Months Ended

Mar. 31, 2024

Fair Value Disclosures [Abstract]

Fair Value, Assets Measured on Recurring Basis

Financial assets measured and recorded at fair value on a recurring basis consist of the following as of:


	March 31, 2024
	Level 1		Level 2		Level 3		Total
(In thousands)
Cash equivalents
Money market funds	$	5,662	$	—	$	—	$	5,662


Total cash equivalents	$	5,662	$	—	$	—	$	5,662


	December 31, 2023
	Level 1		Level 2		Level 3		Total
(In thousands)
Cash equivalents
Money market funds	$	5,589	$	—	$	—	$	5,589
Total cash equivalents	$	5,589	$	—	$	—	$	5,589

Fair Value Measurements (Details) - Fair Value, Recurring - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents	$ 5,662	$ 5,589
Money market funds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents	5,662	5,589
Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents	5,662	5,589
Level 1 \| Money market funds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents	5,662	5,589
Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents	0	0
Level 2 \| Money market funds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents	0	0
Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents	0	0
Level 3 \| Money market funds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents	$ 0	$ 0

Subsequent Events	3 Months Ended
Subsequent Events	Mar. 31, 2024
Subsequent Events [Abstract]
Subsequent Events	Subsequent Events On April 9, 2024 the Company issued a press release on Form 8-K announcing that the Company's Founder Jessica Warren has departed from her role as Chief Creative Officer. Ms. Warren will remain on the board of directors.

Revenue	3 Months Ended
Revenue	Mar. 31, 2024
Revenue from Contract with Customer [Abstract]
Revenue	Revenue The Company had previously presented its revenue by sales channel of Digital and Retail and by product category of Diapers and Wipes, Skin and Personal Care and Household and Wellness. In determining the appropriate categories to use to disaggregate revenue in accordance with the requirements of Accounting Standards Codification Topic 606, Revenue from Contracts with Customers, the Company had considered the information regularly reviewed by its CODM for evaluating its financial performance and making resource allocation decisions and the guidance to disaggregate revenue from contracts with customers into categories that depict how the nature, amount, timing, and uncertainty of revenue and cash flows are affected by economic factors. In 2023, the Company executed a broad-based Transformation Initiative with Brand Maximization as one of the Pillars designed to leverage the strength of the Honest brand. As part of its strategy to build the Honest brand, the Company’s CODM is now evaluating the Company’s financial performance and making resource allocation decisions across the Company’s products as one brand of a portfolio of multiple products. As a result, in the first quarter of 2024, the Company decided to remove the disaggregation of revenue by product category to align with changes made to the Company’s long-term strategy. The Company is now disaggregating revenue by direct-to-consumer and retail and third-party ecommerce customers. The change had no effect on the Company's results of operations or timing of revenue recognition. Direct-to-Consumer For direct sales to the consumer through the Company's website, Honest.com, the Company's performance obligation consists of the sale of finished goods to the consumer. Consumers may purchase products at any time or enter into subscription arrangements. Consumers place orders online in accordance with the Company's standard terms and conditions and authorize payment when the order is placed. Credit cards are charged at the time of shipment and payments are typically processed within two to three business days. For subscription arrangements, consumers sign up to receive products on a periodic basis. Subscriptions are cancellable at any time without penalty, and no amounts are collected from the consumer until products are shipped. Revenue is recognized when transfer of control to the consumer takes place, which is when the product is delivered to the carrier. Sales taxes collected from consumers are accounted for on a net basis and are excluded from revenue. During the three months ended March 31, 2024 and 2023, 15% and 18% of the Company's revenue was generated from Honest.com, respectively. Retail and Third-Party Ecommerce For retail and third-party ecommerce sales, the Company's performance obligation consists of the sale of finished goods to retailers and third-party ecommerce customers. Revenue is recognized when control of the promised goods is transferred to those customers at time of shipment or delivery, depending on the contract terms. After the completion of the performance obligation, the Company has the right to consideration as outlined in the contract. Payment terms vary among the retail and third-party ecommerce customers although terms generally include a requirement of payment within 30 to 45 days of product shipment. Non-Monetary Transactions The Company has in the past and may in the future enter into trade agreements with a vendor to exchange excess inventory for future marketing and transportation credits. The Company recognizes revenue reflecting the fair value of the marketing and transportation credits upon delivery of goods, with the corresponding short and long-term asset included in prepaid expenses and other current assets and other assets in the accompanying condensed consolidated balance sheets. The Company may use the marketing and transportation credits over four years from the date of the respective agreement, with an option to extend for another two years if agreed upon by both parties. For the three months ended March 31, 2024, the Company did not enter into any new trade agreements. For the three months ended March 31, 2024 and 2023, the Company did not recognize any revenue or associated cost of revenue related to these marketing and transportation credits. The Company assesses the recoverability of the marketing and transportation credits periodically. Factors considered in evaluating the recoverability include management’s history of credit usage and future plans with respect to advertising, freight and other services for which these credits can be used. Any impairment losses are charged to operations as they become determinable. For the three months ended March 31, 2024, the Company recorded no impairment losses related to these credits and used an aggregate of $19 thousand of credits.

- Definition

The entire disclosure of revenue from contract with customer to transfer good or service and to transfer nonfinancial asset. Includes, but is not limited to, disaggregation of revenue, credit loss recognized from contract with customer, judgment and change in judgment related to contract with customer, and asset recognized from cost incurred to obtain or fulfill contract with customer. Excludes insurance and lease contracts.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 9
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479806/606-10-50-9

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 10
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479806/606-10-50-10

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 15
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479806/606-10-50-15

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 12
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479806/606-10-50-12

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 12
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479806/606-10-50-12

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 12
-Subparagraph (c)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479806/606-10-50-12

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 12
-Subparagraph (d)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479806/606-10-50-12

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 12
-Subparagraph (e)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479806/606-10-50-12

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 13
-Subparagraph (b)(2)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479806/606-10-50-13

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Name Accounting Standards Codification
-Topic 606
-Publisher FASB
-URI https://asc.fasb.org//606/tableOfContent

+ Details

Income Taxes	3 Months Ended
Income Taxes	Mar. 31, 2024
Income Tax Disclosure [Abstract]
Income Taxes	Income Taxes In determining quarterly provisions for income taxes, the Company uses the annual estimated effective tax rate applied to the actual year-to-date loss, adjusted for discrete items arising in that quarter. The Company’s annual estimated effective tax rate differs from the U.S. federal statutory rate of 21% primarily as a result of a valuation allowance against net deferred tax assets, stock-based compensation, state taxes, nondeductible executive compensation and other permanent differences. The Company has evaluated the available positive and negative evidence supporting the realization of its gross deferred tax assets, including cumulative losses, and the amount and timing of future taxable income, and has determined it is more likely than not that the assets will not be realized. Accordingly, the Company has recorded a full valuation allowance against the U.S. federal and state deferred tax assets as of each balance sheet date presented. During the three months ended March 31, 2024 and 2023, the Company has not recorded any uncertain tax positions and has not recognized interest or penalties in the condensed consolidated statements of comprehensive loss.

- Definition

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 13
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480990/946-20-50-13

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 235
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(h)(2))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480678/235-10-S99-1

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-Name Accounting Standards Codification
-Publisher FASB
-URI https://asc.fasb.org//740/tableOfContent

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 14
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482685/740-10-50-14

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 21
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482685/740-10-50-21

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 270
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482526/740-270-50-1

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 17
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482685/740-10-50-17

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SAB TOPIC 6.I.5.Q1)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479360/740-10-S99-1

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 2
-Subparagraph (SAB Topic 11.C)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479360/740-10-S99-2

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 30
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482603/740-30-50-2

+ Details

Accrued Expenses (Tables)

3 Months Ended

Mar. 31, 2024

Payables and Accruals [Abstract]

Schedule of Accrued Expenses

Accrued expenses consisted of the following:


	March 31, 2024		December 31, 2023
(In thousands)
Payroll and payroll related expenses(1)	$	4,132	$	8,007
Accrued inventory purchases	6,125		9,368
Accrued returns	238		269
Accrued rent(2)	8,212		8,105
Accrued restructuring(3)	251		356
Other accrued expenses	7,458		6,104
Total accrued expenses	$	26,416	$	32,209

____________________

(1) Includes $0.9 million and $1.2 million of Chief Executive Officer and Chief Financial Officer executive transition related expenses as of March 31, 2024 and December 31, 2023, respectively.

(2) Represents short-term operating lease liabilities. Refer to Note 12, "Leases" included in these condensed consolidated financial statements for more information on leases.

(3) Refer to Note 13, "Restructuring" included in these condensed consolidated financial statements for more information on the Company's restructuring.

Accrued Expenses

3 Months Ended

Mar. 31, 2024

Payables and Accruals [Abstract]

Accrued Expenses

Accrued expenses consisted of the following:


	March 31, 2024		December 31, 2023
(In thousands)
Payroll and payroll related expenses(1)	$	4,132	$	8,007
Accrued inventory purchases	6,125		9,368
Accrued returns	238		269
Accrued rent(2)	8,212		8,105
Accrued restructuring(3)	251		356
Other accrued expenses	7,458		6,104
Total accrued expenses	$	26,416	$	32,209

____________________

(1) Includes $0.9 million and $1.2 million of Chief Executive Officer and Chief Financial Officer executive transition related expenses as of March 31, 2024 and December 31, 2023, respectively.

(2) Represents short-term operating lease liabilities. Refer to Note 12, "Leases" included in these condensed consolidated financial statements for more information on leases.

(3) Refer to Note 13, "Restructuring" included in these condensed consolidated financial statements for more information on the Company's restructuring.

Leases - Additional Information (Details)	3 Months Ended
Leases - Additional Information (Details)	Mar. 31, 2024 USD ($)
Lessee, Lease, Description [Line Items]
Non-cash ROU assets obtained in exchange for finance lease liabilities	$ 0
Non-cash ROU assets obtained in exchange for operating lease liabilities	$ 0
Minimum
Lessee, Lease, Description [Line Items]
Lessee, operating lease, remaining lease term	1 year
Lessee, finance lease, remaining lease term	1 year
Maximum
Lessee, Lease, Description [Line Items]
Lessee, operating lease, remaining lease term	6 years 6 months
Lessee, finance lease, remaining lease term	6 years 6 months

Stock-Based Compensation - Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions (Details) - Options	3 Months Ended
	Mar. 31, 2024 $ / shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected life of options (in years)	6 months
Expected stock price volatility, minimum	69.20%
Expected stock price volatility, maximum	86.19%
Risk free interest rate, minimum	5.36%
Risk free interest rate, maximum	5.43%
Expected dividend yield	0.00%
Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Weighted average grant-date fair value per share (in dollars per share)	$ 0.56
Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Weighted average grant-date fair value per share (in dollars per share)	$ 0.67

Leases - Summary of Assets and Liabilities (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023	Dec. 31, 2023
Assets
Finance lease, right-of-use asset, statement of financial position	Property and equipment, net
Finance lease assets	$ 8
Operating lease assets	22,090		$ 23,683
Total lease assets	$ 22,098
Current
Finance lease, liability, current, statement of financial position	Accrued Liabilities, Current
Finance lease liabilities	$ 13
Operating lease, liability, current, statement of financial position	Accrued Liabilities, Current
Operating lease liabilities	$ 8,212		8,105
Non-current
Operating lease liabilities, net of current portion	19,642		$ 21,738
Total lease liabilities	$ 27,867
Weighted-average remaining lease term (in years)
Finance leases	6 months
Operating leases	3 years 3 months 18 days
Weighted-average discount rate
Finance leases	3.00%
Operating leases	2.29%
Cash paid for amounts included in the measurement of lease liabilities (in thousands)
Operating cash flows used in operating leases	$ 1,988
Finance cash flows used in finance leases	$ 10	$ 15

Revenue (Details) - USD ($)	3 Months Ended
Revenue (Details) - USD ($)	Mar. 31, 2024	Mar. 31, 2023
Disaggregation of Revenue [Line Items]
Revenue	$ 86,217,000	$ 83,388,000
Cost of revenue	$ 54,335,000	$ 63,186,000
Revenue from Contract with Customer Benchmark \| Customer Concentration Risk \| Direct To Consumer
Disaggregation of Revenue [Line Items]
Concentration risk, percentage	15.00%	18.00%
Trade Agreements
Disaggregation of Revenue [Line Items]
Marketing credits, usage period	4 years
Marketing credits, option to extend	2 years
Revenue	$ 0	$ 0
Cost of revenue	0	$ 0
Impairment	0
Transportation credit used	$ 19,000

Stock-Based Compensation (Tables)

3 Months Ended

Mar. 31, 2024

Share-Based Payment Arrangement [Abstract]

Schedule of Stock Option Activity

The following table summarizes the stock option activity:


	Number of Options	Weighted Average Exercise Price



















Outstanding at December 31, 2023	13,315,796	$	5.25
Granted	—	$	—
Exercised	(126,000)	$	4.03
Forfeited/Cancelled	(28,541)	$	5.32
Outstanding at March 31, 2024	13,161,255	$	5.26

Schedule of Restricted Stock Unit Activity

The following table summarizes the RSU activity:


	Number of Shares		Weighted Average Grant Date Fair Value Per Share
	Non-Employee Directors	Directors, Officers and Employees	Non-Employee Directors		Directors, Officers and Employees
Unvested RSUs at December 31, 2023	957,199	7,299,254	$	2.19	$	2.38

Granted	60,626	4,616,500	$	3.30	$	3.51
Vested	(15,156)	(1,159,126)	$	3.30	$	2.35
Forfeited	—	(41,074)	$	—	$	2.29
Unvested RSUs at March 31, 2024	1,002,669	10,715,554	$	2.24	$	2.87

Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions

The following table summarizes the key input assumptions used in the Black-Scholes option-pricing model to estimate the grant-date fair value of the 2021 ESPP:


	For the three months ended March 31, 2024
Expected life of options (in years)	0.50
Expected stock price volatility	69.20		%	—	86.19%
Risk free interest rate	5.36		%	—	5.43%
Expected dividend yield	—%
Weighted average grant-date fair value per share	$	0.56		—	$0.67

Stock-based Compensation Expense

Stock-based compensation expense related to RSU awards, 2021 ESPP purchases and stock options, as applicable, are as follows:


	For the three months ended March 31,
	2024		2023
(In thousands)
Selling, general and administrative	$	2,413	$	3,713
Research and development	110		59
Total stock-based compensation expense	$	2,523	$	3,772

Summary of Significant Accounting Policies (Policies)	3 Months Ended
Summary of Significant Accounting Policies (Policies)	Mar. 31, 2024
Accounting Policies [Abstract]
Basis of Presentation	Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) and applicable rules and regulations of the Securities and Exchange Commission (“SEC”) regarding interim financial information. Certain information and disclosures normally included in consolidated financial statements prepared in accordance with GAAP have been condensed or omitted. Accordingly, these condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and related notes for the year ended December 31, 2023. The condensed consolidated financial statements are unaudited. The unaudited interim condensed consolidated financial statements have been prepared on a basis consistent with that used to prepare the audited annual consolidated financial statements and include, in the opinion of management, all adjustments, consisting of normal recurring items, necessary for the fair statement of the condensed consolidated financial statements. The consolidated balance sheet as of December 31, 2023 has been derived from the audited financial statements at that date but does not include all of the disclosures required by GAAP. The condensed consolidated financial statements include the accounts of the Company, and its wholly owned subsidiaries after elimination of intercompany transactions and balances.
Segment Reporting and Geographic Information	Segment Reporting and Geographic Information The Company’s Chief Executive Officer, as the chief operating decision maker, organizes the Company, manages resource allocations, and measures performance on the basis of one operating segment. All of the Company’s long-lived assets are located in the United States and substantially all of the Company’s revenue is from customers located in the United States.
Use of Estimates	Use of Estimates The preparation of the condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and contingent liabilities at the date of the condensed consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. The Company’s estimates, which are subject to varying degrees of judgment, include the valuation of inventories, sales returns and allowances, allowances for credit losses, valuation of short-term investments, capitalized software, useful lives associated with long-lived assets, incremental borrowing rates associated with leases, valuation allowances with respect to deferred tax assets, accruals and contingencies, recoverability of non-cash marketing credits, recoverability of goodwill and long-lived assets, and the valuation and assumptions underlying stock-based compensation. On an ongoing basis, the Company evaluates its estimates compared to historical experience and trends, which form the basis for making judgments about the carrying value of assets and liabilities. The Company assessed certain accounting matters and estimates that generally require consideration of forecasted information in context with the information reasonably available to the Company as of March 31, 2024 and through the date these condensed consolidated financial statements were issued. Management is not aware of any specific event or circumstance that would require an update to estimates or judgments or a revision to the carrying value of assets or liabilities. However, these estimates and judgments may change as new events occur and additional information is obtained, which may result in changes being recognized in the Company’s consolidated financial statements in future periods.
Cash and Cash Equivalents	Cash and Cash Equivalents Cash equivalents consist of short-term, highly liquid investments with stated maturities of three months or less from the date of purchase. Cash equivalents comprise amounts invested in money market funds.
Accounts Receivable	Accounts Receivable Accounts receivable is presented as net of allowance for credit losses. The Company does not accrue interest on its trade receivables. The Company evaluates accounts receivable estimated to be uncollectible by considering the lifetime expected credit losses of the Company's accounts receivable at time of inception, and records an allowance for credit losses, as necessary, with the balance of the Company's accounts receivable presented at the net realizable value. The Company considers factors in its allowance for credit losses such as historical analysis, credit quality of customers, the age of the accounts receivable balances and macroeconomic conditions that may impact on the Company's customers' ability to pay.
Fair Value Measurements	Fair Value Measurements Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The Company uses the following hierarchy in measuring the fair value of the Company’s assets and liabilities, focusing on the most observable inputs when available: Level 1 - Quoted prices in active markets for identical assets or liabilities. Level 2 - Observable inputs other than Level 1 quoted prices, such as quoted prices for similar assets and liabilities in active markets, quoted prices in markets that are not active for identical or similar assets and liabilities, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 3 - Valuations are based on inputs that are unobservable and significant to the overall fair value measurement of the assets or liabilities. Inputs reflect management’s best estimate of what market participants would use in pricing the asset or liability at the measurement date. Consideration is given to the risk inherent in the valuation technique and the risk inherent in the inputs to the model. Fair value is based on quoted market prices, if available. If listed prices or quotes are not available, fair value is based on internally developed models that primarily use market-based or independently sourced market parameters as inputs. Cash equivalents, consisting primarily of money market funds, represent highly liquid investments with maturities of three months or less at purchase. Market prices, which are Level 1 in the fair value hierarchy, are used to determine the fair value of the money market funds. Investments in debt securities are measured using broker provided indicative prices developed using observable market data, which are considered Level 2 in the fair value hierarchy. Certain assets, including long-lived assets, goodwill and intangible assets are also subject to measurement at fair value on a non-recurring basis if they are deemed to be impaired as a result of an impairment review. The fair value is measured using Level 3 inputs in the fair value hierarchy.
Recent Accounting Pronouncements	Recent Accounting Pronouncements As an “emerging growth company,” the Jumpstart Our Business Startups Act allows the Company to delay adoption of new or revised accounting pronouncements applicable to public companies until such pronouncements are made applicable to private companies. The Company has elected to use the adoption dates applicable to private companies. As a result, the Company’s financial statements may not be comparable to the financial statements of issuers who are required to comply with the effective date for new or revised accounting standards that are applicable to public companies. Recently Issued Accounting Pronouncements – Not Yet Adopted In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures, which expands reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses. The amendments in the ASU require that a public entity discloses, on an annual and interim basis, significant segment expenses that are regularly provided to an entity's chief operating decision maker (“CODM”), a description of other segment items by reportable segment, and any additional measures of a segment's profit or loss used by the CODM when deciding how to allocate resources. The amendments in this ASU are effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. Retrospective application is required for all prior periods presented, and early adoption is permitted. The Company does not expect the adoption of ASU No. 2023-07 to have a material impact on the Company’s consolidated financial statements or disclosures. In December 2023, the FASB issued ASU No. 2023-09, Income Taxes: Improvements to Income Tax Disclosures. This guidance requires consistent categories and greater disaggregation of information in the rate reconciliation and disclosures of income taxes paid by jurisdiction. For public business entities, the amendments in this update are effective for annual periods beginning after December 15, 2024. The Company does not expect the adoption of ASU No. 2023-09 to have a material impact on the Company’s consolidated financial statements or disclosures.
Direct-to-Consumer and Retail and Third-Party Ecommerce	Direct-to-Consumer For direct sales to the consumer through the Company's website, Honest.com, the Company's performance obligation consists of the sale of finished goods to the consumer. Consumers may purchase products at any time or enter into subscription arrangements. Consumers place orders online in accordance with the Company's standard terms and conditions and authorize payment when the order is placed. Credit cards are charged at the time of shipment and payments are typically processed within two to three business days. For subscription arrangements, consumers sign up to receive products on a periodic basis. Subscriptions are cancellable at any time without penalty, and no amounts are collected from the consumer until products are shipped. Revenue is recognized when transfer of control to the consumer takes place, which is when the product is delivered to the carrier. Sales taxes collected from consumers are accounted for on a net basis and are excluded from revenue. During the three months ended March 31, 2024 and 2023, 15% and 18% of the Company's revenue was generated from Honest.com, respectively. Retail and Third-Party Ecommerce For retail and third-party ecommerce sales, the Company's performance obligation consists of the sale of finished goods to retailers and third-party ecommerce customers. Revenue is recognized when control of the promised goods is transferred to those customers at time of shipment or delivery, depending on the contract terms. After the completion of the performance obligation, the Company has the right to consideration as outlined in the contract. Payment terms vary among the retail and third-party ecommerce customers although terms generally include a requirement of payment within 30 to 45 days of product shipment.

- Definition

Disclosure of accounting policy for revenue from contract with customer.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
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+ Details

- Definition

Disclosure of accounting policy for segment reporting.

+ References + Details

Commitments and Contingencies	3 Months Ended
Commitments and Contingencies	Mar. 31, 2024
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies Litigation From time to time, the Company is subject to various claims and contingencies which are in the scope of ordinary and routine litigation incidental to its business, including those related to regulation, business transactions, employee-related matters and taxes, among others. When the Company becomes aware of a claim or potential claim, the likelihood of any loss or exposure is assessed. If it is probable that a loss will result and the amount or range of the loss can be reasonably estimated, the Company records a liability for the loss and discloses the possible loss in the consolidated financial statements. Legal costs are expensed as incurred. On September 23, 2020, the Center for Advanced Public Awareness (“CAPA”) served a 60-Day Notice of Violation on the Company, alleging that the Company violated California’s Health and Safety Code (“Prop 65”) because of the amount of lead in the Company’s Diaper Rash Cream and seeking statutory penalties and product warnings available under Prop 65. On October 22, 2021, CAPA filed a complaint in California Superior Court in the County of San Francisco (the “Court”) for the alleged Prop 65 violations contained in its 60-Day Notice of Violation. The Company filed its answer and notice of related cases against Prestige Consumer Healthcare, Inc., Burt's Bees, Inc., and Hain Celestial Group, Inc. on January 7, 2022 and has stipulated to relate these cases and transfer them to the Court's Complex Division. On April 30, 2024, the Company filed its motion for summary judgment. The Company intends to vigorously defend itself in this matter. The matter’s outcome and materiality are uncertain at this time. Therefore, the Company cannot estimate the probability of loss or make an estimate of the loss or range of loss in this matter. On September 15, 2021, Cody Dixon filed a putative class action complaint in the U.S. District Court for the Central District of California alleging federal securities law violations by the Company, certain current officers and directors, and certain underwriters in connection with the Company’s initial public offering (“IPO”). A second putative class action complaint containing similar allegations against the Company and certain current officers and directors was filed by Stephen Gambino on October 8, 2021 in the U.S. District Court for the Central District of California. These related complaints have been transferred to the same court and a Lead Plaintiff has been appointed in the matter, and a putative consolidated class action complaint was filed by the Lead Plaintiff on February 21, 2022, alleging claims and seeking relief under Sections 11 and 15 of the Securities Act of 1933 relating to the Company’s IPO. Defendants’ motion to dismiss the putative consolidated class action complaint was filed on March 14, 2022. On July 18, 2022, the Company's motion to dismiss was granted in part and denied in part. On May 1, 2023, the Lead Plaintiff’s motion for class certification in the consolidated class action was granted in part and denied in part, with the U.S. District Court for the Central District of California limiting the certified class to only those persons and entities that purchased or otherwise acquired the Company’s publicly traded common stock pursuant and traceable to the Company’s IPO offering documents prior to August 19, 2021, as well as all persons and entities that acquired ownership of a trading account, retirement account, or any other similar investment account or portfolio containing the Company’s publicly traded common stock that was purchased or otherwise acquired pursuant and traceable to the IPO offering documents prior to August 19, 2021, and were damaged thereby. On August 14, 2023 the Lead Plaintiff filed an amended consolidated class action complaint naming as additional defendants Catterton Management Company L.L.C., L Catterton VIII, L.P., L. Catterton VIII Offshore, L.P., THC Shared Abacus, LP, Catterton Managing Partner VIII, L.L.C., and C8 Management, L.L.C. On October 16, 2023, those additional defendants filed a motion to dismiss the Second Amended Complaint with respect to the claims against them. On January 31, 2024, that motion to dismiss was granted by the court to the extent those additional defendants challenged the claims as untimely. The court granted Lead Plaintiff leave to amend within fourteen days of that order. On February 14, 2024, the Lead Plaintiff filed a further amended Second Amended Complaint against the additional defendants. The additional defendants filed a motion to dismiss the further amended Second Amended Complaint, which was denied by the court on April 22, 2024. A derivative complaint was filed by Hayato Ono on behalf of the Company on November 29, 2021 in the U.S. District Court for the Central District of California, alleging breach of fiduciary duties, unjust enrichment, waste, gross mismanagement, and federal securities law violations by the Company’s directors and certain officers. On December 17, 2021, a second derivative complaint containing similar allegations against the Company’s directors and certain officers was filed by Mike Wang in the U.S. District Court for the Central District of California. These two federal derivative cases have been transferred to the same judge who is presiding over the securities class action complaints. A third derivative complaint was filed by Leah Bisch and Raluca Corobana in California Superior Court for the County of Los Angeles on January 3, 2022 with similar allegations. A fourth derivative complaint was filed by David Butler in the U.S. District Court for the District of Delaware on October 19, 2022 with similar allegations. Each of these federal and state court derivative cases have been stayed pending the outcome of a motion for summary judgment in the securities class action. These matters are in the preliminary stages of litigation with uncertain outcomes at this time. Therefore, the Company cannot estimate the probability of loss or make an estimate of the loss or range of loss in these matters. On August 10, 2022, Catrice Sida and Kris Yerby filed a putative class action complaint in the U.S. District Court for the Northern District of California alleging violations of California’s Unfair Competition Law, False Advertising Law, Consumers Legal Remedies Act, breach of warranty, and unjust enrichment related to plant-based claims on certain of the Company’s wipes products and seeking declaratory relief, injunctive relief, monetary damages, punitive damages and statutory penalties, and attorneys’ fees and costs. The Company filed its motion to dismiss on October 17, 2022. On December 6, 2022, the Company's motion to dismiss was denied. The Company’s motion to stay pending the Ninth Circuit Court of Appeals’ review of the Central District of California’s decision in Whiteside v. Kimberly-Clark Corp., No. 5:22-cv-1988 JGB (SPx), 2023 WL 4328175 (C.D. Cal. June 1, 2023) was denied on September 5, 2023. On February 20, 2024, the parties filed a Notice of Settlement to notify the court that the parties have agreed to settle the matter on an individual, non-class basis. The plaintiffs will file a Stipulation of Dismissal upon finalization of the settlement agreement. As of March 31, 2024 and December 31, 2023, the Company was not subject to any other currently pending legal matters or claims that based on its current evaluation are expected to have a material adverse effect on its financial position, results of operations, or cash flows should such matters be resolved unfavorably. Indemnifications In the ordinary course of business, the Company may provide indemnifications of varying scope and terms to investors, directors and officers with respect to certain matters, including, but not limited to, losses arising out of the Company’s breach of such agreements, services to be provided by the Company, or from intellectual property infringement claims made by third parties. These indemnifications may survive termination of the underlying agreement and the maximum potential number of future payments the Company could be required to make under these indemnification provisions may not be subject to maximum loss clauses. The maximum potential number of future payments the Company could be required to make under these indemnification provisions is indeterminable. The Company has never been involved in litigation in connection with these indemnification arrangements. As of March 31, 2024 and December 31, 2023, the Company has not accrued a liability for these guarantees as the likelihood of incurring a payment obligation, if any, in connection with these guarantees is not probable or reasonably estimable due to the unique facts and circumstances involved.

Net Income (Loss) per Share Attributable to Common Stockholders - Potentially Dilutive Shares Excluded From Computation of Diluted Net Income (Loss) Per Share (Details) - shares	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share (in shares)	24,950,620	22,427,057
Stock options to purchase common stock
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share (in shares)	13,161,255	14,784,486
Unvested restricted stock units
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share (in shares)	11,718,223	7,603,414
Employee stock purchase plan
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share (in shares)	71,142	39,157

Stock-Based Compensation - Stock Option Activity (Details)	3 Months Ended
	Mar. 31, 2024 $ / shares shares
Number of Options
Options outstanding, beginning balance (in shares) \| shares	13,315,796
Granted (in shares) \| shares	0
Exercised (in shares) \| shares	(126,000)
Forfeited/Cancelled (in shares) \| shares	(28,541)
Options outstanding, ending balance (in shares) \| shares	13,161,255
Weighted Average Exercise Price
Weighted-average exercise price, beginning balance (in dollars per share) \| $ / shares	$ 5.25
Weighted-average exercise price, granted (in dollars per share) \| $ / shares	0
Weighted-average exercise price, exercised (in dollars per share) \| $ / shares	4.03
Weighted-average exercise price, forfeited/cancelled (in dollars per share) \| $ / shares	5.32
Weighted-average exercise price, ending balance (in dollars per share) \| $ / shares	$ 5.26

Summary of Significant Accounting Policies	3 Months Ended
Summary of Significant Accounting Policies	Mar. 31, 2024
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	Summary of Significant Accounting Policies Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) and applicable rules and regulations of the Securities and Exchange Commission (“SEC”) regarding interim financial information. Certain information and disclosures normally included in consolidated financial statements prepared in accordance with GAAP have been condensed or omitted. Accordingly, these condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and related notes for the year ended December 31, 2023. The condensed consolidated financial statements are unaudited. The unaudited interim condensed consolidated financial statements have been prepared on a basis consistent with that used to prepare the audited annual consolidated financial statements and include, in the opinion of management, all adjustments, consisting of normal recurring items, necessary for the fair statement of the condensed consolidated financial statements. The consolidated balance sheet as of December 31, 2023 has been derived from the audited financial statements at that date but does not include all of the disclosures required by GAAP. The condensed consolidated financial statements include the accounts of the Company, and its wholly owned subsidiaries after elimination of intercompany transactions and balances. Segment Reporting and Geographic Information The Company’s Chief Executive Officer, as the chief operating decision maker, organizes the Company, manages resource allocations, and measures performance on the basis of one operating segment. All of the Company’s long-lived assets are located in the United States and substantially all of the Company’s revenue is from customers located in the United States. Use of Estimates The preparation of the condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and contingent liabilities at the date of the condensed consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. The Company’s estimates, which are subject to varying degrees of judgment, include the valuation of inventories, sales returns and allowances, allowances for credit losses, valuation of short-term investments, capitalized software, useful lives associated with long-lived assets, incremental borrowing rates associated with leases, valuation allowances with respect to deferred tax assets, accruals and contingencies, recoverability of non-cash marketing credits, recoverability of goodwill and long-lived assets, and the valuation and assumptions underlying stock-based compensation. On an ongoing basis, the Company evaluates its estimates compared to historical experience and trends, which form the basis for making judgments about the carrying value of assets and liabilities. The Company assessed certain accounting matters and estimates that generally require consideration of forecasted information in context with the information reasonably available to the Company as of March 31, 2024 and through the date these condensed consolidated financial statements were issued. Management is not aware of any specific event or circumstance that would require an update to estimates or judgments or a revision to the carrying value of assets or liabilities. However, these estimates and judgments may change as new events occur and additional information is obtained, which may result in changes being recognized in the Company’s consolidated financial statements in future periods. Cash and Cash Equivalents Cash equivalents consist of short-term, highly liquid investments with stated maturities of three months or less from the date of purchase. Cash equivalents comprise amounts invested in money market funds. Accounts Receivable Accounts receivable is presented as net of allowance for credit losses. The Company does not accrue interest on its trade receivables. The Company evaluates accounts receivable estimated to be uncollectible by considering the lifetime expected credit losses of the Company's accounts receivable at time of inception, and records an allowance for credit losses, as necessary, with the balance of the Company's accounts receivable presented at the net realizable value. The Company considers factors in its allowance for credit losses such as historical analysis, credit quality of customers, the age of the accounts receivable balances and macroeconomic conditions that may impact on the Company's customers' ability to pay. The allowance for credit losses was $0.4 million and $0.4 million as of March 31, 2024 and December 31, 2023, respectively. Fair Value Measurements Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The Company uses the following hierarchy in measuring the fair value of the Company’s assets and liabilities, focusing on the most observable inputs when available: Level 1 - Quoted prices in active markets for identical assets or liabilities. Level 2 - Observable inputs other than Level 1 quoted prices, such as quoted prices for similar assets and liabilities in active markets, quoted prices in markets that are not active for identical or similar assets and liabilities, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 3 - Valuations are based on inputs that are unobservable and significant to the overall fair value measurement of the assets or liabilities. Inputs reflect management’s best estimate of what market participants would use in pricing the asset or liability at the measurement date. Consideration is given to the risk inherent in the valuation technique and the risk inherent in the inputs to the model. Fair value is based on quoted market prices, if available. If listed prices or quotes are not available, fair value is based on internally developed models that primarily use market-based or independently sourced market parameters as inputs. Cash equivalents, consisting primarily of money market funds, represent highly liquid investments with maturities of three months or less at purchase. Market prices, which are Level 1 in the fair value hierarchy, are used to determine the fair value of the money market funds. Investments in debt securities are measured using broker provided indicative prices developed using observable market data, which are considered Level 2 in the fair value hierarchy. Certain assets, including long-lived assets, goodwill and intangible assets are also subject to measurement at fair value on a non-recurring basis if they are deemed to be impaired as a result of an impairment review. The fair value is measured using Level 3 inputs in the fair value hierarchy. Recent Accounting Pronouncements As an “emerging growth company,” the Jumpstart Our Business Startups Act allows the Company to delay adoption of new or revised accounting pronouncements applicable to public companies until such pronouncements are made applicable to private companies. The Company has elected to use the adoption dates applicable to private companies. As a result, the Company’s financial statements may not be comparable to the financial statements of issuers who are required to comply with the effective date for new or revised accounting standards that are applicable to public companies. Recently Issued Accounting Pronouncements – Not Yet Adopted In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures, which expands reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses. The amendments in the ASU require that a public entity discloses, on an annual and interim basis, significant segment expenses that are regularly provided to an entity's chief operating decision maker (“CODM”), a description of other segment items by reportable segment, and any additional measures of a segment's profit or loss used by the CODM when deciding how to allocate resources. The amendments in this ASU are effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. Retrospective application is required for all prior periods presented, and early adoption is permitted. The Company does not expect the adoption of ASU No. 2023-07 to have a material impact on the Company’s consolidated financial statements or disclosures. In December 2023, the FASB issued ASU No. 2023-09, Income Taxes: Improvements to Income Tax Disclosures. This guidance requires consistent categories and greater disaggregation of information in the rate reconciliation and disclosures of income taxes paid by jurisdiction. For public business entities, the amendments in this update are effective for annual periods beginning after December 15, 2024. The Company does not expect the adoption of ASU No. 2023-09 to have a material impact on the Company’s consolidated financial statements or disclosures.

Credit Facilities	3 Months Ended
Credit Facilities	Mar. 31, 2024
Debt Disclosure [Abstract]
Credit Facilities	Credit Facilities In January 2023, the Company entered into a first lien credit agreement (the “2023 Credit Facility”), with JPMorgan Chase Bank, N.A., as administrative agent and lender, and the other lenders party thereto, which provides for a $35.0 million revolving credit facility that matures on April 30, 2026. The 2023 Credit Facility includes a sub-facility that provides for the issuance of letters of credit in an amount of up to $15.0 million at any time outstanding. Availability of the 2023 Credit Facility is based upon a borrowing base formula and periodic borrowing base certifications valuing certain of the Company’s accounts receivable and inventory as reduced by an availability block and certain reserves, if any. The 2023 Credit Facility includes an uncommitted accordion feature that allows for increases in the revolving commitment to as much as an additional $35.0 million, for up to $70.0 million in potential revolving commitment. The 2023 Credit Facility is subject to customary fees for loan facilities of this type, including a commitment fee based on the average daily undrawn portion of the 2023 Credit Facility. The Company recognizes the commitment fee as incurred in interest and other income (expense), net in the condensed consolidated statements of comprehensive loss. For the three months ended March 31, 2024 and 2023, the commitment fee incurred was immaterial. As of March 31, 2024, there were $3.7 million outstanding letters of credit and $17.7 million available to be drawn upon. As of March 31, 2024, there was no outstanding balance under the 2023 Credit Facility. The interest rate applicable to the 2023 Credit Facility is, at the Company’s option, either (a) the Adjusted Term SOFR rate (subject to a 0.00% floor), plus a margin ranging from 1.50% to 2.25% or (b) the CB floating rate, (i) plus a margin of 0.25% or (ii) minus a margin ranging from 0.25% to 0.50%. The margin is based upon the Company’s fixed charge coverage ratio. The CB floating rate is the higher of (a) the Wall Street Journal prime rate and (b) 2.50%. The 2023 Credit Facility will terminate and borrowings thereunder, if any, would be due in full on April 30, 2026. Debt under the 2023 Credit Facility is guaranteed by substantially all of the Company’s material domestic subsidiaries and is secured by substantially all of the Company’s and such subsidiaries’ assets. The 2023 Credit Facility contains covenants that restrict, among other things, the Company's ability to sell assets, make investments and acquisitions, grant liens, change the Company’s lines of business, pay dividends and make certain other restricted payments. The Company is subject to certain affirmative and negative covenants including the requirement that it maintains a minimum total fixed charge coverage ratio during the periods set forth in the 2023 Credit Facility. Failure to do so, unless waived by the lenders under the 2023 Credit Facility pursuant to its terms, as amended, would result in an event of default under the 2023 Credit Facility. As of March 31, 2024, the Company is in compliance with all covenants under the 2023 Credit Facility.

- Definition

The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants.

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Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1C
-Subparagraph (c)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1C

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1E
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1E

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1I
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1I

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1I
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1I

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1I
-Subparagraph (d)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1I

+ Details

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Cash flows from operating activities
Net loss	$ (1,403)	$ (18,867)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Depreciation and amortization	717	668
Stock-based compensation	2,523	3,772
Other	1,593	1,545
Changes in assets and liabilities:
Accounts receivable, net	2,577	(2,894)
Inventories	(1,012)	17,191
Prepaid expenses and other assets	471	7,884
Accounts payable, accrued expenses and other long-term liabilities	(2,873)	(10,845)
Deferred revenue	(269)	670
Operating lease liabilities	(1,988)	(1,885)
Net cash provided by (used in) operating activities	336	(2,761)
Cash flows from investing activities
Proceeds from maturities of short-term investments	0	2,953
Purchases of property and equipment	(76)	(473)
Net cash (used in) provided by investing activities	(76)	2,480
Cash flows from financing activities
Proceeds from exercise of stock options	508	0
Payments on finance lease liabilities	(10)	(15)
Net cash provided by (used in) financing activities	498	(15)
Net increase (decrease) in cash and cash equivalents	758	(296)
Cash and cash equivalents
Beginning of the period	32,827	9,517
End of the period	33,585	9,221
Supplemental disclosures of noncash activities
Capital expenditures included in accounts payable and accrued expenses	$ 1	$ 25

Leases (Tables)

3 Months Ended

Mar. 31, 2024

Leases [Abstract]

Lease, Cost

The components of lease expense were as follows (in thousands):


	For the three months ended March 31,
	2024		2023
Finance lease expense:
Amortization	$	7	$	16

Operating lease expense:
Operating lease expense(1)	1,792		1,792
Sublease income	(501)		(501)
Total lease expense, net	$	1,298	$	1,307

______________________

(1) Represents the straight-line lease expense of operating leases, inclusive of amortization of ROU assets and the interest component of operating lease liabilities.

Assets and Liabilities, Lessee

The following tables set forth the amount of lease assets and lease liabilities included in the Company’s condensed consolidated balance sheets (in thousands):

Assets

Financial Statement Line Item

March 31, 2024

Finance lease assets

Property and equipment, net

Operating lease assets

Operating lease right-of-use asset

22,090

Total lease assets

22,098

Liabilities

Current

Finance lease liabilities

Accrued expenses

Operating lease liabilities

Accrued expenses

8,212

Non-current

Operating lease liabilities

Operating lease liabilities, net of current portion

19,642

Total lease liabilities

27,867

Supplemental information related to the Company’s leases for the three months ended March 31, 2024 was as follows:


Weighted-average remaining lease term (in years)
Finance leases	0.5
Operating leases	3.3
Weighted-average discount rate
Finance leases	3.00		%
Operating leases	2.29		%
Cash paid for amounts included in the measurement of lease liabilities (in thousands)

Operating cash flows used in operating leases	$	1,988
Finance cash flows used in finance leases	$	10

Restructuring (Tables)

3 Months Ended

Mar. 31, 2024

Restructuring and Related Activities [Abstract]

Schedule of Restructuring Reserve by Type of Cost

Changes in accrued expenses as of March 31, 2024 relating to the Transformation Initiative were:


	Restructuring Costs
	Employee-Related Costs(1)		Asset-Related Costs		Contract Terminations		Inventory Reserves		Total
Balance at December 31, 2023	$	356	$	—	$	—	$	2,581	$	2,937
Charges (adjustments)	—		—		—		—		—
Cash payments	(105)		—		—		—		(105)
Non-cash asset write-offs	—		—		—		(2,098)		(2,098)
Balance at March 31, 2024	$	251	$	—	$	—	$	483	$	734

___________

(1) Included in accrued expenses as of March 31, 2024. Refer to Note 6, "Accrued Expenses" included elsewhere in these condensed consolidated financial statements.

Stock-Based Compensation - RSU Awards Narrative (Details) - Unvested restricted stock units $ in Millions	3 Months Ended
	Mar. 31, 2024 USD ($)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized stock-based compensation expense	$ 30.5
Period for recognition	3 years 1 month 6 days

- Definition

Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table.

+ References

+ Details

Stock-Based Compensation - 2023 Inducement Plan (Details) - 2023 Inducement Plan - shares	Mar. 31, 2024	Mar. 31, 2023
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of common stock authorized to be issued (in shares)		4,000,000
Number of shares available for purchase (in shares)	275,083

- Definition

Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table.

+ References

+ Details

Condensed Consolidated Statements of Redeemable Convertible Preferred Stock and Stockholders’ Equity (Deficit) - USD ($) $ in Thousands	Total	Common Stock	Additional Paid-in Capital	Accumulated Deficit	Accumulated Other Comprehensive Income (Loss)
Beginning balance (in shares) at Dec. 31, 2022	0
Beginning balance at Dec. 31, 2022	$ 0
Ending balance (in shares) at Mar. 31, 2023	0
Ending balance at Mar. 31, 2023	$ 0
Beginning balance (in shares) at Dec. 31, 2022		92,907,351
Beginning balance at Dec. 31, 2022	146,360	$ 9	$ 586,213	$ (439,830)	$ (32)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net loss	(18,867)			(18,867)
Other comprehensive loss	19				19
Stock-based compensation	3,772		3,772
Vested restricted stock units (in shares)		549,484
Ending balance (in shares) at Mar. 31, 2023		93,456,835
Ending balance at Mar. 31, 2023	$ 131,284	$ 9	589,985	(458,697)	(13)
Beginning balance (in shares) at Dec. 31, 2023	0
Beginning balance at Dec. 31, 2023	$ 0
Ending balance (in shares) at Mar. 31, 2024	0
Ending balance at Mar. 31, 2024	$ 0
Beginning balance (in shares) at Dec. 31, 2023	95,868,421	95,868,421
Beginning balance at Dec. 31, 2023	$ 123,139	$ 9	602,198	(479,068)	0
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net loss	(1,403)			(1,403)
Other comprehensive loss	$ 0
Stock options exercised (in shares)	126,000	126,000
Stock options exercised	$ 508		508
Stock-based compensation	$ 2,523		2,523
Vested restricted stock units (in shares)		1,174,282
Ending balance (in shares) at Mar. 31, 2024	97,168,703	97,168,703
Ending balance at Mar. 31, 2024	$ 124,767	$ 9	$ 605,229	$ (480,471)	$ 0

Credit Facilities (Details) - 2023 Credit Facility - USD ($)	1 Months Ended
	Jan. 31, 2023	Mar. 31, 2024
Revolving Credit Facility \| Line of Credit
Line of Credit Facility [Line Items]
Maximum issuance of letters of credit	$ 35,000,000
Line of credit facility, accordion feature, increase limit	35,000,000
Line of credit facility, accordion feature, higher borrowing capacity	$ 70,000,000
Letters of credit outstanding		$ 3,700,000
Letters of credit available to be drawn		17,700,000
Secured overnight financing rate floor	0.00%
Revolving Credit Facility \| Secured Overnight Financing Rate (SOFR) \| Line of Credit \| Minimum
Line of Credit Facility [Line Items]
Debt instrument, basis spread on variable rate plus (minus)	1.50%
Revolving Credit Facility \| Secured Overnight Financing Rate (SOFR) \| Line of Credit \| Maximum
Line of Credit Facility [Line Items]
Debt instrument, basis spread on variable rate plus (minus)	2.25%
Revolving Credit Facility \| Prime Rate \| Line of Credit
Line of Credit Facility [Line Items]
Debt instrument, basis spread on variable rate plus (minus)	0.25%
Revolving Credit Facility \| Prime Rate \| Line of Credit \| Minimum
Line of Credit Facility [Line Items]
Debt instrument, basis spread on variable rate plus (minus)	(0.25%)
Revolving Credit Facility \| Prime Rate \| Line of Credit \| Maximum
Line of Credit Facility [Line Items]
Debt instrument, basis spread on variable rate plus (minus)	(0.50%)
Revolving Credit Facility \| CB floating rate
Line of Credit Facility [Line Items]
Interest rate base	2.50%
Letter of Credit \| Line of Credit
Line of Credit Facility [Line Items]
Maximum issuance of letters of credit	$ 15,000,000
Outstanding borrowings		$ 0

Related Party Transactions	3 Months Ended
Related Party Transactions	Mar. 31, 2024
Related Party Transactions [Abstract]
Related Party Transactions	Related Party Transactions In April 2020, the Company engaged Summit House Studios LLC, a third-party consultant, to provide digital ad production services. Summit House Studios LLC is owned by a major shareholder of the Company. Based on services provided, the Company did not incur any advertising costs for this related party during the three months ended March 31, 2024 and incurred an immaterial amount in the three months ended March 31, 2023, which is reported as marketing expense in the Company’s condensed consolidated statements of comprehensive loss. In May 2022, the Company engaged, Vault Co., a third-party consultant, to develop and deliver an ongoing brand tracker for the Company. Vault Co. is owned by a major shareholder of the Company. Based on services provided, the Company did not incur any advertising costs for this related party during the three months ended March 31, 2024 and incurred an immaterial amount in the three months ended March 31, 2023, which is reported as marketing expense in the Company’s condensed consolidated statements of comprehensive loss.

- Definition

The entire disclosure for related party transactions. Examples of related party transactions include transactions between (a) a parent company and its subsidiary; (b) subsidiaries of a common parent; (c) and entity and its principal owners; and (d) affiliates.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480990/946-20-50-2

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 5
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480990/946-20-50-5

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 6
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480990/946-20-50-6

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 235
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (c)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481062/946-235-50-2

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 235
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (e)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481062/946-235-50-2

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Topic 850
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (d)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147483326/850-10-50-1

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 220
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.6-07(2)(g)(3))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147483575/946-220-S99-1

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 220
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.6-07(2)(c))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147483575/946-220-S99-1

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 220
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.6-07(2)(e))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147483575/946-220-S99-1

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Topic 850
-Name Accounting Standards Codification
-Publisher FASB
-URI https://asc.fasb.org//850/tableOfContent

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Topic 850
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 6
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147483326/850-10-50-6

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Topic 850
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147483326/850-10-50-1

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Topic 850
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147483326/850-10-50-1

+ Details

Income Taxes (Details) - USD ($)	3 Months Ended
Income Taxes (Details) - USD ($)	Mar. 31, 2024	Mar. 31, 2023
Income Tax Disclosure [Abstract]
Uncertain tax positions	$ 0	$ 0
Interest and penalties expense	$ 0	$ 0

Fair Value Measurements

3 Months Ended

Mar. 31, 2024

Fair Value Disclosures [Abstract]

Fair Value Measurements

Financial assets measured and recorded at fair value on a recurring basis consist of the following as of:


	March 31, 2024
	Level 1		Level 2		Level 3		Total
(In thousands)
Cash equivalents
Money market funds	$	5,662	$	—	$	—	$	5,662


Total cash equivalents	$	5,662	$	—	$	—	$	5,662


	December 31, 2023
	Level 1		Level 2		Level 3		Total
(In thousands)
Cash equivalents
Money market funds	$	5,589	$	—	$	—	$	5,589
Total cash equivalents	$	5,589	$	—	$	—	$	5,589

The carrying amounts for the Company’s cash equivalents, accounts receivable, accounts payable, and accrued expenses approximate fair value due to their short maturities.

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References + Details

Net Income (Loss) per Share Attributable to Common Stockholders (Tables)

3 Months Ended

Mar. 31, 2024

Earnings Per Share [Abstract]

Schedule of Earnings Per Share, Basic and Diluted

The following table sets forth the computation of the Company’s basic and diluted net loss per share attributable to common stockholders:


	For the three months ended March 31,
(In thousands, except for share and per share values)	2024		2023
Numerator:
Net loss	$	(1,403)	$	(18,867)



Net loss attributable to common stockholders - basic and diluted	$	(1,403)	$	(18,867)



Denominator:
Weighted average shares of common stock outstanding - basic and diluted	96,273,168		93,106,075




Net loss per share, attributable to common shareholders:
Basic and diluted	$	(0.01)	$	(0.20)

Schedule of Potentially Dilutive Shares

The following potentially dilutive shares were excluded from the computation of diluted net income (loss) per share because including them would have been antidilutive:


	For the three months ended March 31,
	2024	2023

Stock options to purchase common stock	13,161,255	14,784,486
Unvested restricted stock units	11,718,223	7,603,414
Employee stock purchase plan	71,142	39,157
Total	24,950,620	22,427,057

Cover - shares	3 Months Ended
Cover - shares	Mar. 31, 2024	May 06, 2024
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Mar. 31, 2024
Document Transition Report	false
Entity File Number	001-40378
Entity Registrant Name	The Honest Company, Inc.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	90-0750205
Entity Address, Address Line One	12130 Millennium Drive
Entity Address, Address Line Two	#500
Entity Address, City or Town	Los Angeles
Entity Address, State or Province	CA
Entity Address, Postal Zip Code	90094
City Area Code	888
Local Phone Number	862-8818
Title of 12(b) Security	Common Stock, $0.0001 par value per share
Trading Symbol	HNST
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	true
Entity Ex Transition Period	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		98,637,688
Entity Central Index Key	0001530979
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2024
Document Fiscal Period Focus	Q1
Amendment Flag	false

Restructuring - Narrative (Details) $ in Millions	Mar. 31, 2024 USD ($)
Employee-Related Costs
Restructuring Cost and Reserve [Line Items]
Restructuring reserve	$ 0.3

- Definition

Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table.

+ References + Details

Leases - Summary of Lease Cost (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Leases [Abstract]
Amortization	$ 7	$ 16
Operating lease expense	1,792	1,792
Sublease income	(501)	(501)
Total lease expense, net	$ 1,298	$ 1,307

Stock-Based Compensation - RSU Awards (Details) - Unvested restricted stock units	3 Months Ended
	Mar. 31, 2024 $ / shares shares
Non-Employee Directors
Number of Shares
Unvested RSUs, beginning balance (in shares) \| shares	957,199
Granted (in shares) \| shares	60,626
Vested (in shares) \| shares	(15,156)
Forfeited (in shares) \| shares	0
Unvested RSUs, ending balance (in shares) \| shares	1,002,669
Weighted Average Grant Date Fair Value Per Share
Unvested RSUs, beginning balance (in dollars per share) \| $ / shares	$ 2.19
Granted (in dollars per share) \| $ / shares	3.30
Vested (in dollars per share) \| $ / shares	3.30
Forfeited (in dollars per share) \| $ / shares	0
Unvested RSUs, ending balance (in dollars per share) \| $ / shares	$ 2.24
Directors, Officers and Employees
Number of Shares
Unvested RSUs, beginning balance (in shares) \| shares	7,299,254
Granted (in shares) \| shares	4,616,500
Vested (in shares) \| shares	(1,159,126)
Forfeited (in shares) \| shares	(41,074)
Unvested RSUs, ending balance (in shares) \| shares	10,715,554
Weighted Average Grant Date Fair Value Per Share
Unvested RSUs, beginning balance (in dollars per share) \| $ / shares	$ 2.38
Granted (in dollars per share) \| $ / shares	3.51
Vested (in dollars per share) \| $ / shares	2.35
Forfeited (in dollars per share) \| $ / shares	2.29
Unvested RSUs, ending balance (in dollars per share) \| $ / shares	$ 2.87

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Current assets
Cash and cash equivalents	$ 33,585	$ 32,827
Accounts receivable, net	40,507	43,084
Inventories	74,502	73,490
Prepaid expenses and other current assets	7,770	8,371
Total current assets	156,364	157,772
Operating lease right-of-use asset	22,090	23,683
Property and equipment, net	12,824	13,486
Goodwill	2,230	2,230
Intangible assets, net	291	309
Other assets	4,272	4,141
Total assets	198,071	201,621
Current liabilities
Accounts payable	25,304	22,289
Accrued expenses	26,416	32,209
Deferred revenue	1,942	2,212
Total current liabilities	53,662	56,710
Long term liabilities
Operating lease liabilities, net of current portion	19,642	21,738
Other long-term liabilities	0	34
Total liabilities	73,304	78,482
Commitments and contingencies (Note 7)
Stockholders’ equity
Preferred stock, $0.0001 par value, 20,000,000 shares authorized at March 31, 2024 and December 31, 2023, none issued or outstanding as of March 31, 2024 and December 31, 2023	0	0
Common stock, $0.0001 par value, 1,000,000,000 shares authorized at March 31, 2024 and December 31, 2023; 97,168,703 and 95,868,421 shares issued and outstanding as of March 31, 2024 and December 31, 2023, respectively	9	9
Additional paid-in capital	605,229	602,198
Accumulated deficit	(480,471)	(479,068)
Total stockholders’ equity	124,767	123,139
Total liabilities and stockholders’ equity	$ 198,071	$ 201,621