EX-99.1 2 exhibit991unauditedinterim.htm EX-99.1 Document

第99.1展示文本
 
SHARKNINJA,INC。
 
綜合財務報表索引
 
 
 
 
1


SHARKNINJA,INC。
簡明合併資產負債表
(以千爲單位,除股份數和每股數據外)
(未經審計)
 截至
 
2024 年 9 月 30 日
2023 年 12 月 31 日
資產
流動資產:
現金和現金等價物$127,948 $154,061 
應收賬款,淨額(1)
1,190,410 985,172 
庫存1,076,246 699,740 
預付費用和其他流動資產
121,721 58,311 
流動資產總額2,516,325 1,897,284 
財產和設備,淨額196,002 166,252 
經營租賃使用權資產149,975 63,333 
無形資產,淨額466,826 477,816 
善意834,781 834,203 
遞延所得稅資產19,713 12 
其他資產,非流動資產53,703 48,170 
總資產$4,237,325 $3,487,070 
負債和股東權益
流動負債:
應付賬款(2)
$632,850 $459,651 
應計費用和其他流動負債
640,947 620,333 
應納稅款22,025 20,991 
債務,當前214,344 24,157 
流動負債總額1,510,166 1,125,132 
債務,非流動745,975 775,483 
經營租賃負債,非流動152,100 63,043 
遞延所得稅負債3,750 16,500 
其他非流動負債30,795 28,019 
負債總額2,442,786 2,008,177 
承付款和或有開支(注10)
股東權益:
普通股,每股面值0.0001美元,授權1,000,000股;截至2024年9月30日和2023年12月31日,已發行和流通的股票分別爲140,219,933股和139,083,369股
14 14 
額外的實收資本1,012,407 1,009,590 
留存收益780,308 470,319 
累計其他綜合收益(虧損)1,810 (1,030)
股東權益總額1,794,539 1,478,893 
負債和股東權益總額$4,237,325 $3,487,070 
 
(1) 包括截至2024年9月30日和2023年12月31日的關聯方金額分別爲$7,948和$3,594。
(2) 截至2024年9月30日和2023年12月31日,相關方款項分別爲$52,740和$101,538。

附帶說明是這些未經審計的簡化合並財務報表的組成部分。 
2


SHARKNINJA,INC。
簡明合併利潤表
(以千爲單位,除股份數和每股數據外)
(未經審計)
 
 截至9月30日的三個月截至9月30日的九個月
 2024202320242023
淨銷售額(1)
$1,426,566 $1,070,617 $3,741,452 $2,876,211 
銷售成本(2)
731,559 583,124 1,918,929 1,591,254 
毛利潤695,007 487,493 1,822,523 1,284,957 
運營費用:  
研究和開發(3)
94,808 60,691 254,457 180,430 
銷售和營銷300,841 207,599 818,594 568,035 
一般和行政(4)
119,096 124,655 310,432 263,682 
運營費用總額514,745 392,945 1,383,483 1,012,147 
營業收入180,262 94,548 439,040 272,810 
利息支出,淨額(16,916)(13,003)(46,482)(28,523)
其他收入(支出),淨額11,031 (5,865)14,968 (41,315)
所得稅前收入 174,377 75,680 407,526 202,972 
所得稅準備金42,048 56,958 97,537 85,218 
淨收入$132,329 $18,722 $309,989 $117,754 
基本每股淨收益$0.94 $0.13 $2.22 $0.85 
攤薄後的每股淨收益$0.94 $0.13 $2.20 $0.85 
用於計算每股淨收益的加權平均股票數量,基本140,114,282 139,073,181 139,818,196 139,059,206 
用於計算每股淨收益的加權平均股票數量,攤薄後
141,305,999 139,430,805 140,974,062 139,179,724 
 
 
(1) 包括截至2024年9月30日和2023年分別相關方金額爲$4,612和$620;截至2024年9月30日和2023年分別金額爲$6,962和$1,871的九個月。
(2) 包括截至2024年9月30日和2023年的三個月分別與關聯方相關的金額爲56,997美元和259,784美元;分別爲2024年和2023年九個月截至2024年9月30日和2023年的金額爲189,149美元和953,013美元。
(3) 包括截至2024年9月30日和2023年分別爲$355和$640的關聯方金額;以及截至2024年9月30日和2023年分別爲$1,095和$2,405的九個月金額。
(4) 包括截至2024年9月30日和2023年9月30日三個月的相關方金額爲$(750)和$(500);以及截至2024年9月30日和2023年9月30日九個月的相關方金額爲$(2,250)和$(500)。

 
附帶說明是這些未經審計的簡化合並財務報表的組成部分。

3


SHARKNINJA,INC。
綜合收益簡明合併報表
(以千爲單位)
(未經審計)
 
 截至9月30日的三個月截至9月30日的九個月
 2024202320242023
淨收入$132,329 $18,722 $309,989 $117,754 
其他綜合收益(損失), 淨額(稅後):
外幣翻譯調整23,351 (12,380)21,229 (3,967)
衍生工具未實現的(損失)收益,淨額(16,660)14,486 (18,389)5,545 
綜合收益$139,020 $20,828 $312,829 $119,332 
 
附帶說明是這些未經審計的簡化合並財務報表的組成部分。
4


SHARKNINJA,INC。
股東權益基本報表摘要
(以千爲單位,除股票數據外)
(未經審計)
 
 2024年9月30日止三個月
 其他綜合收益(虧損)累計額
 股本外溢價股東權益合計
 普通股未分配利潤
 股份數量
截至2024年6月30日的餘額139,936,246 $14 $1,002,931 $647,979 $(4,881)$1,646,043 
股權酬金— — 13,785 — — 13,785 
受限股票單位的解禁,淨扣稅後股份148,823 — (9,796)— — (9,796)
員工股票購買計劃下發行的股票134,864 — 5,487 — — 5,487 
其他綜合收益,扣除稅後— — — — 6,691 6,691 
淨收入— — — 132,329 — 132,329 
2024年9月30日的餘額140,219,933 $14 $1,012,407 $780,308 $1,810 $1,794,539 

 2023年9月30日止三個月
 累計其他綜合損失
 股本外溢價股東權益合計
 普通股未分配利潤
 股份數量
截至2023年6月30日的餘額138,982,872 $14 $941,206 $935,487 $(10,197)$1,866,510 
股權酬金— — 21,337 — — 21,337 
向原母公司支付的分配款項— — — (383,035)— (383,035)
將SharkNinja有限公司出售給前母公司— — (3,295)— — (3,295)
其他綜合收益,扣除稅後— — — — 2,106 2,106 
淨收入— — — 18,722 — 18,722 
截至2023年9月30日的餘額138,982,872 $14 $959,248 $571,174 $(8,091)$1,522,345 
 
附帶說明是這些未經審計的簡化合並財務報表的組成部分。
5


 SHARKNINJA,INC。
股東權益基本報表摘要
(以千爲單位,除股票數據外)
(未經審計)
 
 截至2024年9月30日的九個月
 累計其他綜合(虧損)收益
 額外的實收資本股東權益總額
 普通股留存收益
 股票金額
截至 2023 年 12 月 31 日的餘額139,083,369 $14 $1,009,590 $470,319 $(1,030)$1,478,893 
基於股份的薪酬— — 47,341 — — 47,341 
歸屬限制性股票單位,扣除稅收預扣的股份1,001,700 — (50,011)— — (50,011)
根據員工股票購買計劃發行的股票134,864 — 5,487 — — 5,487 
其他綜合收益,扣除稅款— — — — 2,840 2,840 
淨收入— — — 309,989 — 309,989 
截至 2024 年 9 月 30 日的餘額140,219,933 $14 $1,012,407 $780,308 $1,810 $1,794,539 

 2023年9月30日結束的九個月
 累積其他綜合損失
 資本公積金股東權益總額
 普通股保留收益
 股份金額
截至2022年12月31日的結餘138,982,872 $14 $941,206 $896,738 $(9,669)$1,828,289 
支付給原母公司的股息— — — (443,318)— (443,318)
基於股份的報酬— — 24,502 — — 24,502 
從原母公司為股份報酬充值— — (3,165)— — (3,165)
將SharkNinja Co, Ltd.出售給原母公司— — (3,295)— — (3,295)
其他綜合收益,稅後— — — — 1,578 1,578 
凈利潤— — — 117,754 — 117,754 
截至2023年9月30日的結餘138,982,872 $14 $959,248 $571,174 $(8,091)$1,522,345 

附註是這些未經審計的簡明綜合財務報表的一個組成部分。
6


SHARKNINJA,INC。
簡明財務報表現金流量表
(以千為單位)
(未經審計)
 截至9月30日的九個月
 20242023
經營活動現金流量:  
凈利潤$309,989 $117,754 
調整,以將凈利潤調整為經營活動產生的凈現金流量:  
折舊與攤提86,870 77,394 
基於股份的報酬47,341 24,502 
信用損失準備3,744 2,266 
非現金租賃費用15,963 9,688 
递延所得税资产,扣除递延所得税负债后净额(32,420)3,905 
其他1,631 1,662 
營運資產和負債的變化:  
應收帳款(1)
(193,151)(192,209)
存貨(357,114)(258,982)
預付費用及其他資產(2)
(69,477)65,508 
應付賬款(3)
162,019 343,603 
應交稅項1,034 883 
營業租賃負債(7,428)(9,280)
應計費用及其他負債(4)
(12,050)(90,914)
營運活動產生的淨現金流量(43,049)95,780 
投資活動之現金流量:  
購買不動產和設備(95,232)(70,501)
購買無形資產(6,571)(6,905)
首字母大寫的內部使用軟件開發(1,100)(683)
已售應收賬款中受益權的現金收入— 16,777 
其他投資活動,淨額— (3,051)
投資活動中使用的淨現金(102,903)(64,363)
來自籌資活動的現金流量: 
發行債務所得款,扣除發行成本— 800,915 
償還債務(15,188)(437,500)
透過循環信用額度借款所得淨額175,000 — 
支付給前母公司的分配金額— (435,292)
前母公司為基於股份的報酬作出的補充— (3,165)
發行受限制股權時扣減的淨普通股(50,011)— 
員工購股計劃下發行股份所得款項5,487 — 
籌資活動提供的淨現金115,288 (75,042)
現金的匯率變動效應4,551 (4,768)
現金、現金等價物和受限制現金的總體減少(26,113)(48,393)
期初現金、現金等價物及限制性現金餘額154,061 218,770 
期末現金及現金等價物$127,948 $170,377 
非現金投資和籌資活動的補充披露:  
已計提但尚未支付的購買資產和設備$1,390 $408 
透過分配取消關係人票據— (8,026)
現金流量避險的未實現損失(20,562)5,725 
 
 
(1) 包括截至2024年和2023年9月30日的相關方餘額變動為$(4,354)和$(5,048)。 截至2024年和2023年9月30日的九個月結束時。
(2) 包括截至2024年9月30日及2023年9月30日九個月結束時相關方餘額的變動分別為$0和$18,555。
(3) 包括截至2024年9月30日和2023年的九個月結束時,相關方餘額的變動分別為$(48,798)和$(119,704)。
(4) 包括截至2024年和2023年9月30日相關方餘額的變動分別為$0和$(8,399)。 九個月截至日期為2024年9月29日 September 30, 2024和2023年分別。
 
附註是這些未經審計的簡明綜合財務報表的一個組成部分。


7

SHARKNINJA,INC。
基本報表附註
(未經審計)

1. 組織和業務描述
 
SharkNinja, Inc.("該公司")是一家全球產品設計和科技公司,為包括清潔器具、烹飪和飲品器具、食物製備器具以及其他產品在內的多個子類別創造創新的生活方式產品解決方案,品牌包括"Shark"和"Ninja"。SharkNinja總部位於麻薩諸塞州Needham,在整個北美、歐洲和其他部分國際市場分銷產品。

SharkNinja, Inc.於2023年5月17日在開曼群島成立,為JS Global Lifestyle Company Limited(“JS Global”或“前母公司”)的全資子公司。公司的成立是為了完成公司在紐交所的上市和相關交易,以進行SharkNinja Global SPV, Ltd.及其附屬公司的業務。

SharkNinja全球貨幣 SPV有限公司於2017年註冊成立,為JS Global的全資子公司。在2023年7月28日之前,SharkNinja全球貨幣 SPV有限公司擔任JS Global的全資業務組合,而JS Global是香港交易所上市實體。

2023年7月30日,在(1)與JS Global公司分拆(「分拆」)以及(2)將JS Global普通股股東持有的SharkNinja Global SPV,LTD.的所有JS Global股權作為公司普通股的股息分派後,JS Global將SharkNinja Global SPV,Ltd.的所有已發行股份出資給SharkNinja, Inc.,換取SharkNinja, Inc.的股份。2023年7月31日,JS Global將SharkNinja, Inc.的138,982,872股普通股分發給JS Global普通股股東,SharkNinja, Inc.開始在紐交所上市。

由於分拆和分佈被視為共同控制下實體之間的交易,因此在交易之前的期間和在紐交所上市之前的基本報表已根據展示目的調整,合併了先前分開的實體SharkNinja, Inc.和SharkNinja Global SPV, Ltd。此外,SharkNinja, Inc.分發的股份金額在這些簡明合併基本報表中反映在所有股份和相關財務資訊中。

在分拆和分配之前,SharkNinja Global SPV, Ltd.与分拆和分配之后的SharkNinja, Inc.及其子公司一起,均在此處稱為"SharkNinja"或"公司"。
 
2. 重要會計政策摘要
 
報告基礎
 
附註所附的精簡合併基本報表乃根據美國公認會計原則("US GAAP")編製,包括SharkNinja, Inc. 及其全資子公司的帳戶。所有公司間交易和餘額均在合併時消除。為了比較便利,特定之之前期金額已重新分類以符合目前期間的呈現方式。
 
2023年12月31日的總報表是根據當天的審計合併基本報表衍生,但不包含所有揭露,包括美國通用會計原則年度報告基礎上所要求的某些附註。根據證券交易委員會(“SEC”)的規定,根據美國GAAP準備的財務報表通常包含的某些信息和附註抽縮或省略了。因此,應閱讀這些未經查證的總報表時,須同時參考2023年12月31日和有關附註的審計合併基本報表。

管理層認為,未經審核的簡明綜合基本報表是根據年度綜合基本報表的同一基礎編製的,並反映包括所有調整在內,這些調整僅包括
8


normal recurring adjustments, necessary for the fair presentation of the Company’s financial position as of September 30, 2024 and the Company’s condensed consolidated statements of income, comprehensive income, and shareholders’ equity for the three and nine months ended September 30, 2024 and 2023 and cash flows for the nine months ended September 30, 2024 and 2023. The results for the three and nine months ended September 30, 2024 are not necessarily indicative of the operating results expected for the year ended December 31, 2024 or any future operating periods.
 
The Company has identified the significant accounting policies that are critical to understanding its business and results of operations. There have been no significant changes during the nine months ended September 30, 2024 to the significant accounting policies disclosed in the Company’s audited consolidated financial statements and related notes thereto as of and for the year ended December 31, 2023 within the Form 20-F filed on March 1, 2024.

Use of Estimates
 
The preparation of condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements and the reported amounts of net sales and expenses during the reporting periods and accompanying notes. Significant items subject to such estimates and assumptions include but are not limited to variable consideration for returns, sales rebates and discounts, the allowance for credit losses, reserve for product warranties, the fair value of financial assets and liabilities including the accounting and fair value of derivatives, valuation of inventory, the fair value of acquired intangible assets and goodwill, the useful lives of acquired intangible assets, determination of incremental borrowing rate for leases, share-based compensation, including probability of the attainment of awards with performance conditions and grant-date fair value of awards with market conditions, and the valuation of deferred tax assets and uncertain tax positions. Actual results could differ from those estimates.
 
Concentration of Credit Risks
 
Financial instruments that potentially subject the Company to a concentration of credit risk consist of cash and cash equivalents, accounts receivable, and forward contracts. The Company maintains its cash and cash equivalents with high-quality financial institutions, the composition and maturities of which are regularly monitored by the Company.
 
The Company has outstanding accounts receivable balances with retailers, distributors and direct-to-consumer (“DTC”) customers. The Company is exposed to credit risk in the event of nonpayment by customers to the extent of the amounts recorded in the condensed consolidated balance sheets. The Company extends different levels of credit to customers, without requiring collateral deposits, and when necessary, maintains reserves for potential credit losses based upon the expected collectability of accounts receivable. The Company manages credit risk related to its customers by performing periodic evaluations of credit worthiness and applying other credit risk monitoring procedures.
 
The Company sells a significant portion of its products through retailers and, as a result, maintains individually significant receivable balances with these parties. If the financial condition or operations of these retailers deteriorates substantially, the Company’s operating results could be adversely affected.
9


 
The following table summarizes the Company’s customers that represented 10% or more of accounts receivable, net:
 As of
 
September 30, 2024
December 31, 2023
Customer A25.5 %22.4 %
Customer B12.0 16.7 

The following table summarizes the Company’s customers that represented 10% or more of net sales:
 
 Three Months Ended September 30,Nine Months Ended September 30,
 2024202320242023
Customer A23.5 %19.2 %20.1 %18.9 %
Customer C12.1 15.2 11.7 15.0 

Accounts Receivable, Net
 
Accounts receivable are presented net of allowance for credit losses and allowance for chargebacks. Accounts receivable are presented net of liabilities when a right of setoff exists. The Company determined the allowance for customer incentives and allowance for sales returns should be recorded as a liability.
 
The Company maintains an allowance related to customer incentives based on specific terms and conditions included in the customer agreements or based on historical experience and the Company’s expectation of discounts.
 
The Company maintains an allowance for credit losses to provide for the estimated amount of receivables that will not be collected. To estimate the allowance for credit losses the Company applied the loss-rate method using relevant available information including historical write-off activity, current conditions and reasonable and supportable forecasts. The allowance for credit losses is measured on a pooled basis when similar risk characteristics exist. When assessing whether to measure certain financial assets on a pooled basis, the Company considered various risk characteristics, including geographic location and industry of the customer.
 
Expected credit losses are estimated over the contractual term of the financial assets. Write-offs of accounts receivable are recorded to the allowance for credit losses. Any subsequent recoveries of previously written off balances are recorded as a reduction to credit loss expense.
 
Below is a rollforward of the Company’s allowance for credit losses:
 
 Three Months Ended September 30,Nine Months Ended September 30,
 2024202320242023
  
 (in thousands)
Beginning balance$7,692 $6,926 $8,225 $6,998 
Provision for credit losses1,219 1,048 3,744 2,266 
Write-offs and other adjustments(1,211)(1,328)(4,269)(2,618)
Ending balance$7,700 $6,646 $7,700 $6,646 
 
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Disaggregation of Net Sales

The following table summarizes net sales by region based on the billing address of customers:
 
 Three Months Ended September 30,Nine Months Ended September 30,
 2024202320242023
 AmountPercentage of Net SalesAmountPercentage of Net SalesAmountPercentage of Net SalesAmountPercentage of Net Sales
 (in thousands, except percentages)
Domestic(1)
$1,005,667 70.5 %$797,344 74.5 %$2,609,152 69.7 %$2,044,986 71.1 %
International(2)
420,899 29.5 273,273 25.5 1,132,300 30.3 831,225 28.9 
Total net sales$1,426,566 100.0 %$1,070,617 100.0 %$3,741,452 100.0 %$2,876,211 100.0 %
 
(1) Domestic consists of net sales in the United States and Canada. Net sales from the United States represented 64.6% and 67.8% of total net sales for the three months ended September 30, 2024 and 2023, respectively; and 64.3% and 65.5% of total net sales for the nine months ended September 30, 2024 and 2023, respectively.
(2) Net sales from the United Kingdom represented 13.1% and 16.6% of total net sales for the three months ended September 30, 2024 and 2023, respectively; and 16.0% and 19.2% of total net sales for the nine months ended September 30, 2024 and 2023, respectively.

The following table presents net sales by brand:
 
 Three Months Ended September 30,Nine Months Ended September 30,
 2024 202320242023
 AmountPercentage of Net SalesAmountPercentage of Net SalesAmountPercentage of Net SalesAmountPercentage of Net Sales
 (in thousands, except percentages)
Shark$648,279 45.4 %$519,828 48.6 %$1,784,299 47.7 %$1,464,466 50.9 %
Ninja778,287 54.6 550,789 51.4 1,957,153 52.3 1,411,745 49.1 
Total net sales$1,426,566 100.0 %$1,070,617 100.0 %$3,741,452 100.0 %$2,876,211 100.0 %

The following table presents net sales by product category:
 
 Three Months Ended September 30,Nine Months Ended September 30,
 2024202320242023
 AmountPercentage of Net SalesAmountPercentage of Net SalesAmountPercentage of Net SalesAmountPercentage of Net Sales
    
 (in thousands, except percentages)
Cleaning Appliances$527,453 37.0 %$449,319 42.0 %$1,415,488 37.8 %$1,277,986 44.4 %
Cooking and Beverage Appliances411,453 28.8 339,328 31.7 1,120,371 29.9 939,060 32.7 
Food Preparation Appliances366,834 25.7 211,461 19.7 836,782 22.4 472,685 16.4 
Other120,826 8.5 70,509 6.6 368,811 9.9 186,480 6.5 
Total net sales$1,426,566 100.0 %$1,070,617 100.0 %$3,741,452 100.0 %$2,876,211 100.0 %
 
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Warranty Costs
 
The Company accrues the estimated cost of product warranties at the time it recognizes net sales and records warranty expense to cost of goods sold. The Company’s standard warranty provides for repair or replacement of the associated products during the warranty period. The amount of the provision for the warranties is estimated based on sales volume and past experience of the level of repairs and returns. If actual product failure rates or repair costs differ from estimates, revisions to the estimated warranty obligation may be required.
 
Product warranty liabilities and changes were as follows:
 
 Three Months Ended September 30,Nine Months Ended September 30,
 2024202320242023
  
 (in thousands)
Beginning balance$27,226 $21,173 $28,090 $20,958 
Accruals for warranties issued12,927 17,738 28,880 31,488 
Changes in liability for pre-existing warranties— (964)— (964)
Settlements made(11,140)(13,621)(27,957)(27,156)
Ending balance$29,013 $24,326 $29,013 $24,326 
 
Segment Information
 
The Company operates in one operating and reportable segment. Operating segments are defined as components of an enterprise about which separate financial information is evaluated regularly by the chief operating decision maker, who is the Company’s chief executive officer (“CEO”), in deciding how to allocate resources and assessing performance. The Company’s CEO allocates resources and assesses performance based upon discrete financial information at the consolidated level.
 
Net sales by geographical region can be found in the disaggregation of net sales in Note 2 above. The following table presents the Company’s property and equipment, net of depreciation and amortization, by geographic region:
 
 As of
 September 30, 2024December 31, 2023
  
 (in thousands)
United States$63,706 $60,644 
China108,471 92,931 
Rest of World23,825 12,677 
Total property and equipment, net$196,002 $166,252 
 
Recently Issued Accounting Pronouncements
 
In November 2023, the Financial Accounting Standard Board (“FASB”) issued Accounting Standard Update (“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, among other things, disclosure of significant segment expenses that are regularly provided to an entity’s chief operating decision maker (“CODM”) and a description of other segment items (the difference between segment revenue less the segment expenses disclosed under the significant expense principle and each reported measure of segment profit or loss) by reportable segment,
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as well as disclosure of the title and position of the CODM, and an explanation of how the CODM uses the reported measure(s) of segment profit or loss in assessing segment performance and deciding how to allocate resources. The new standard is effective for the Company in fiscal year 2024, and interim periods beginning in fiscal year 2025. Retrospective application is required. The Company is currently evaluating the impact this ASU may have on its consolidated financial statements.

In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740), Improvements to Income Tax Disclosures, which requires disclosure of disaggregated income taxes paid, prescribes standard categories for the components of the effective tax rate reconciliation, and modifies other income tax-related disclosures. The standard is effective for the Company in fiscal year 2025, and may be applied prospectively or retrospectively. The Company is currently evaluating the impact this ASU may have on its consolidated financial statements.

3. Condensed Consolidated Balance Sheet Components
 
Property and Equipment, Net
 
Property and equipment, net consisted of the following:
 
 As of
 September 30, 2024December 31, 2023
  
 (in thousands)
Molds and tooling$279,518 $286,305 
Computer and software53,998 100,225 
Displays59,261 91,074 
Equipment20,334 19,391 
Furniture and fixtures13,098 10,614 
Leasehold improvements41,247 36,061 
Total property and equipment467,456 543,670 
Less: accumulated depreciation and amortization(294,403)(389,689)
Construction in progress22,949 12,271 
Property and equipment, net$196,002 $166,252 
 
Depreciation and amortization expense was $23.9 million and $20.0 million for the three months ended September 30, 2024 and 2023, respectively, and $69.2 million and $60.6 million for the nine months ended September 30, 2024 and 2023, respectively.

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Accrued Expenses and Other Current Liabilities
 
Accrued expenses and other current liabilities consisted of the following:
 
 As of
 September 30, 2024December 31, 2023
  
 (in thousands)
Accrued customer incentives$208,408 $207,593 
Accrued expenses134,927 106,198 
Accrued compensation and benefits83,903 89,658 
Accrued returns46,569 58,828 
Sales and other tax payable3,629 19,904 
Accrued advertising4,007 35,968 
Accrued delivery and distributions52,844 29,850 
Accrued warranty29,013 28,090 
Operating lease liabilities, current14,745 8,390 
Accrued professional fees and legal reserves34,301 8,071 
Derivative liabilities13,907 3,370 
Other14,694 24,413 
Accrued expenses and other current liabilities$640,947 $620,333 
 
4. Sale of SharkNinja Co., Ltd

On July 27, 2023, as part of the separation, the Company executed a reorganization whereby SharkNinja sold its Japanese subsidiary, SharkNinja Co., Ltd., to JS Global for a note equal to $8.0 million. The transaction did not result in a change in reporting entity or meet the criteria for discontinued operations and, therefore, the Company has reflected SharkNinja Co., Ltd. in its financial position and results of operations using SharkNinja Co., Ltd.'s carrying values, prior to the separation, and has accounted for the transaction on a prospective basis.

The transaction was accounted for as a common control transaction during the three months ended September 30, 2023, whereby the difference of $3.3 million between the proceeds received through the note of $8.0 million and the net carrying value of the assets at the time of the transaction of $11.3 million was recorded as a reduction to additional paid-in capital. The note of $8.0 million was then distributed to JS Global and recorded as a reduction to retained earnings.

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5. Fair Value Measurements
 
The following table presents information about the Company’s assets and liabilities that are measured at fair value on a recurring basis as of September 30, 2024:
 
 September 30, 2024
 Fair ValueLevel 1Level 2Level 3
   
 (in thousands)
Financial Assets:
Money market funds included in cash and cash equivalents$10,838 $10,838 $— $— 
Total financial assets$10,838 $10,838 $— $— 
Financial Liabilities:    
Derivatives designated as hedging instruments:    
Forward contracts included in accrued expenses and other current liabilities (Note 6)
$13,907 $— $13,907 $— 
Total financial liabilities$13,907 $— $13,907 $— 
 
The following table presents information about the Company’s assets and liabilities that are measured at fair value on a recurring basis as of December 31, 2023:
 
 December 31, 2023
 Fair ValueLevel 1Level 2Level 3
    
 (in thousands)
Financial Assets:    
Money market funds included in cash and cash equivalents$1,806 $1,806 $— $— 
Total financial assets$1,806 $1,806 $— $— 
Financial Liabilities:
Derivatives designated as hedging instruments:
Forward contracts included in accrued expenses and other current liabilities (Note 6)
$3,370 $— $3,370 $— 
Total financial liabilities$3,370 $— $3,370 $— 
 
The Company classifies its money market funds within Level 1 because they are valued using quoted prices in active markets. The Company classifies its derivative financial instruments within Level 2 because they are valued using inputs other than quoted prices which are directly or indirectly observable in the market, including readily-available pricing sources for the identical underlying security which may not be actively traded.
 
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6. Derivative Financial Instruments and Hedging
 
Notional Amount of Forward Contracts
 
The gross notional amounts of the Company’s forward contracts are USD denominated. The notional amounts of outstanding forward contracts in USD as of the periods presented were as follows:
 
 As of
 
September 30, 2024
December 31, 2023
 
 (in thousands)
Derivatives designated as hedging instruments:
Forward contracts$183,670 $350,000 
Total derivative instruments$183,670 $350,000 
 
Effect of Forward Contracts on the Condensed Consolidated Statements of Income
 
The Company did not have any forward contracts that were not designated as hedging instruments for the three and nine months ended September 30, 2024. Total gain (loss) recognized from derivatives that were not designated as hedging instruments was $0.7 million for the three months ended September 30, 2023 and $(31.6) million for the nine months ended September 30, 2023, and was recorded in other expense, net within the condensed consolidated statements of income.
 
Effect of Forward Contracts on Accumulated Other Comprehensive Income
 
The following table represents the unrealized gains (losses) of forward contracts that were designated as hedging instruments, net of tax effects, that were recorded in accumulated other comprehensive income as of September 30, 2024 and 2023, and their effect on other comprehensive income for the three and nine months ended September 30, 2024 and 2023: 
 Three Months Ended September 30,Nine Months Ended September 30,
2024202320242023
 (in thousands)
Beginning balance$(3,902)$(8,941)$(2,173)$— 
Amount of net (losses) gains recorded in other comprehensive income(16,423)15,698 (16,838)5,607 
Amount of net losses reclassified from other comprehensive income to earnings(237)(1,212)(1,551)(62)
Ending balance$(20,562)$5,545 $(20,562)$5,545 

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7. Intangible Assets, Net and Goodwill
 
Intangible Assets, Net
 
Intangible assets consisted of the following as of September 30, 2024:
 
 Gross Carrying ValueAccumulated Amortization Net Carrying ValueWeighted-Average Remaining Useful Life
  
 (in thousands)(in years)
Intangible assets subject to amortization:    
Customer relationships$143,083 $(111,287)$31,796 2.0
Patents63,442 (29,027)34,415 5.4
Developed technology22,860 (7,509)15,351 7.4
Total intangible assets subject to amortization$229,385 $(147,823)$81,562  
Intangible assets not subject to amortization: 
Trade name and trademarks$385,264 $— $385,264 Indefinite
Total intangible assets, net$614,649 $(147,823)$466,826  
 
Intangible assets consisted of the following as of December 31, 2023:
 
 Gross Carrying Value Accumulated Amortization Net Carrying Value Weighted-Average Remaining Useful Life
    
 (in thousands) (in years)
Intangible assets subject to amortization:      
Customer relationships$143,083 $(99,363)$43,720  2.8
Patents57,436 (24,763)32,673  5.4
Developed technology22,677 (5,953)16,724  8.3
Total intangible assets subject to amortization$223,196 $(130,079)$93,117   
Intangible assets not subject to amortization:  
Trade name and trademarks$384,699 $— $384,699  Indefinite
Total intangible assets, net$607,895 $(130,079)$477,816   
 
Amortization expenses for intangible assets were as follows:
 
 Three Months Ended September 30,Nine Months Ended September 30,
 2024202320242023
  
 (in thousands)
Research and development$1,914 $1,632 $5,738 $4,918 
Sales and marketing3,974 3,975 11,923 11,924 
Total amortization expenses$5,888 $5,607 $17,661 $16,842 
 
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The expected future amortization expenses related to the intangible assets as of September 30, 2024 were as follows: 
 Amount
 (in thousands)
Years ending December 31, 
Remainder of 2024$6,310 
202524,269 
202620,294 
20277,449 
20284,682 
Thereafter18,558 
Total$81,562 
 
Goodwill
 
The following table represents the changes to goodwill:
 
 Carrying Amount
 (in thousands)
Balance as of December 31, 2023$834,203 
Effect of foreign currency translation578 
Balance as of September 30, 2024$834,781 
 
8. Operating Leases

The components of total lease costs for operating leases for the periods presented were as follows:

 Three Months Ended September 30,Nine Months Ended September 30,
 2024202320242023
  
 (in thousands)
Operating lease cost$7,437 $4,429 $21,317 $13,822 
Variable lease cost5,236 4,233 12,032 9,672 
Short-term lease cost305 172 663 363 
Total lease cost$12,978 $8,834 $34,012 $23,857 

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The supplemental cash flow information related to operating leases for the periods presented were as follows:

 Nine Months Ended September 30,
 20242023
  
 (in thousands)
Cash payments for operating lease liabilities$14,223 $13,669 
Operating lease liabilities arising from obtaining new operating lease right-of-use assets during the period$99,345 $9,116 

The weighted-average remaining lease terms and discount rates for operating leases were as follows:

As of
 
September 30, 2024
December 31, 2023
Weighted-average remaining lease term (years)7.15.7
Weighted-average discount rate6.3%4.6%

Future minimum lease payments under non-cancellable leases as of September 30, 2024, were as follows:

 Amount
 (in thousands)
Years ending December 31, 
Remainder of 2024$4,614 
202525,272 
202630,195 
202730,562 
202830,536 
Thereafter89,316 
Total undiscounted lease payments210,496 
Less: imputed interest(43,651)
Total operating lease liabilities$166,845 

9. Debt
 
On July 20, 2023, the Company entered into a credit agreement (“2023 Credit Agreement”) with Bank of America, N.A., as administrative agent, and certain banks and financial institutions party thereto as lenders and issuing banks. The 2023 Credit Agreement provides for an $810.0 million term loan facility (the “2023 Term Loans”) and a $500.0 million revolving credit facility (“2023 Revolving Facility”). The 2023 Term Loans and 2023 Revolving Facility mature in July 2028, and both facilities bear interest at the Secured Overnight Financing Rate (“SOFR”) plus 1.75%. All SOFR borrowings under the 2023 Credit Agreement also incur a 0.1% credit adjustment. The Company has the ability to borrow in certain alternative currencies under the 2023 Credit Agreement. Alternative currency loans are priced using an Alternative Currency Term Rate plus any applicable spread adjustments. The Company may request increases to the 2023 Term Loans or 2023 Revolving Facility in a maximum aggregate amount not to exceed the greater of $520.0 million or 100% of adjusted earnings before interest, taxes, depreciation, and amortization, as defined in the 2023 Credit Agreement, for the most recently completed fiscal year. The 2023 Credit Agreement replaced the Company’s existing credit facility that had a
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remaining principal balance of $400.0 million and accrued interest of $9.2 million.

No amounts were outstanding on the 2023 Revolving Facility as of December 31, 2023. During the nine months ended September 30, 2024, there were $210.0 million in draw downs on the 2023 Revolving Facility, of which $35.0 million has been repaid and $175.0 million remained outstanding as of September 30, 2024 and is recorded within debt, current on the condensed consolidated balance sheets. As of September 30, 2024, $9.1 million of letters of credit were outstanding, resulting in an available balance of $315.9 million under the 2023 Revolving Facility.

The Company is required to meet certain financial covenants customary with this type of agreement, including, but not limited to, maintaining a maximum ratio of indebtedness and a minimum specified interest coverage ratio. As of September 30, 2024, the Company was in compliance with the covenants under the 2023 Credit Agreement.

The obligations of the loan parties under the 2023 Credit Agreement with respect to the 2023 Term Loans and 2023 Revolving Facility are secured by (i) equity interests owned by the loan parties in each other loan party and in certain of the Company's wholly-owned domestic restricted subsidiaries and (ii) substantially all assets of the domestic loan parties (subject to certain customary exceptions). In addition, subject to certain customary exceptions, these obligations are guaranteed by (i) the Company, (ii) each subsidiary of the Company that directly or indirectly owns a borrower and (iii) each other direct and indirect wholly-owned domestic restricted subsidiary of the Company.

Debt consisted of the following:
 
 As of
 
September 30, 2024
December 31, 2023
  
 (in thousands)
2023 Term Loans with principal payments due quarterly; final balance due on maturity date of July 20, 2028$789,750 $804,938 
2023 Revolving Facility175,000 — 
Less: deferred financing costs(4,431)(5,298)
Total debt, net of deferred financing costs960,319 799,640 
Less: debt, current(214,344)(24,157)
Debt, noncurrent$745,975 $775,483 
 
Aggregate maturities on debt (excluding the 2023 Revolving Facility) as of September 30, 2024 were as follows:
 
 Amount
 (in thousands)
Years ending December 31, 
Remainder of 2024$10,125 
202540,500 
202640,500 
202740,500 
2028658,125 
Total future principal payments$789,750 
 
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The Company recognizes and records interest expense related to its debt in interest expense, net, which totaled $18.0 million and $14.0 million for the three months ended September 30, 2024 and 2023, respectively, and $49.3 million and $28.3 million for the nine months ended September 30, 2024 and 2023, respectively.

10. Commitments and Contingencies    
 
Non-Cancelable Purchase Obligations
 
In the normal course of business, the Company enters into non-cancelable purchase commitments, including marketing and endorsement agreements. Certain of these agreements extend over terms of up to five years, with payments required in varying installments over the term. As of September 30, 2024, the Company has remaining obligations associated with agreements with original terms greater than 12 months totaling $28.7 million, which is payable in a combination of cash and ordinary shares of SharkNinja, Inc.
 
Indemnifications and Contingencies
 
The Company enters into indemnification provisions under certain agreements with other parties in the ordinary course of business. In its customer agreements, the Company has agreed to indemnify, defend and hold harmless the indemnified party for third-party claims and related losses suffered or incurred by the indemnified party from actual or threatened third-party intellectual property infringement claims. For certain large or strategic customers, the Company has agreed to indemnify, defend and hold harmless the indemnified party for non-compliance with certain additional representations and warranties made by the Company.
 
Legal Proceedings
 
From time to time, the Company may be involved in various legal proceedings arising from the normal course of business activities, including certain patent infringement claims and false advertising claims against us. The Company investigates these claims as they arise. In the opinion of management, the amount of ultimate loss with respect to any current legal proceedings and claims, if determined adversely to the Company, will not have a material adverse effect on its business, financial condition and results of operation.

During the three months ended September 30, 2024, the Company reached a settlement agreement related to asserted patent infringement claims associated with certain product technology. Under the terms of the settlement, both parties agreed to dismiss all claims and counterclaims with prejudice. As a result of this settlement, the Company recognized a liability of $13.5 million as of September 30, 2024, which was recorded in accrued expenses and other current liabilities in the condensed consolidated balance sheet, and such amount was paid in full in October 2024.
 
11. Shareholders' Equity and Equity Incentive Plan
 
Distributions to Former Parent
 
During the year ended December 31, 2022, the Company entered into a note agreement with the Former Parent (the “2022 Intercompany Note to Former Parent”) in which SharkNinja transferred $49.3 million to its Former Parent. Due to the nature of the note receivable, the Company considered it to be an in-substance distribution to its Former Parent accounted for as contra-equity at inception. During the nine months ended September 30, 2023, the Company declared and issued distributions to the Former Parent of $485.4 million which included amounts receivable of $50.4 million under the 2022 Intercompany Note to Former Parent, including interest, in satisfaction of such note, a cash distribution of $60.3 million paid in February, a cash distribution of $375.0 million paid in July for the repayment of JS Global’s outstanding debt under the 2020 Facilities Agreement as discussed in Note 9 - Debt, and a non-cash distribution of the note of $8.0 million related to the sale of the Company's Japanese subsidiary, SharkNinja Co., Ltd, as discussed in Note 4 - Sale of SharkNinja Co., Ltd.

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Restricted Share Units

SharkNinja Equity Incentive Plan

On July 28, 2023, the Company's board of directors adopted the 2023 Equity Incentive Plan (the "2023 Plan”) to grant cash and equity incentive awards to eligible participants in order to attract, motivate and retain talent. The 2023 Plan provides for the issuance of stock options, share appreciation rights, restricted stock awards, restricted share units (“RSUs”), performance awards and other awards. The 2023 Plan initially made 13,898,287 ordinary shares available for future award grants.

RSU activities for the nine months ended September 30, 2024 for RSUs granted under the 2023 Plan to the Company's employees were as follows:
 Number of SharesWeighted Average Grant Date Fair Value per share
Unvested as of December 31, 2023
3,857,986 $28.32 
Granted212,750 63.07 
Vested(1,862,980)(26.17)
Cancelled/Forfeited(98,295)(30.05)
Unvested as of September 30, 2024
2,109,461 $33.64 

RSUs granted for the nine months ended September 30, 2024 under the 2023 Plan were 212,750, of which 85,174 RSUs were granted with service-only conditions, 115,452 performance-based RSUs were granted with vesting conditions tied to the achievement of certain performance growth metrics, such as net sales, gross profit and operating cash flow and 12,124 market-based RSUs were granted with conditions tied to the achievement of a certain level of market capitalization over a consecutive period of time.

In October 2024, the compensation committee and our board of directors approved the grant of 227,371 market-based RSUs to certain senior executives with vesting conditions tied to the achievement of a certain level of market capitalization over a consecutive period of time. Vesting of these market-based RSUs and recognition of all related compensation expense is expected to occur during the three months ended December 31, 2024.

Employee Stock Purchase Plan

On July 28, 2023, the board of directors approved the 2023 Employee Share Purchase Plan (the "ESPP"). A maximum of 1% of the Company's outstanding ordinary shares (or 1,389,828 shares) were made available for sale under the ESPP. The ESPP contains an evergreen provision whereby the shares available for sale will automatically increase on the first day of each calendar year from January 1, 2025 through and including January 1, 2033, in an amount equal to the lesser of (i) 0.15% of the total number of shares of the Company's ordinary shares outstanding on December 31 of the preceding year; (ii) 300,000 shares; or (iii) such lesser number of shares as determined by the board at any time prior to the first day of a given calendar year. The ESPP provides for six-month offering periods during which the Company will grant rights to purchase ordinary shares to eligible employees. The first offering period began in February 2024. During the nine months ended September 30, 2024, there were 134,864 shares purchased under the ESPP. As of September 30, 2024, total unrecognized share-based compensation was $1.8 million, which is to be recognized over a weighted-average remaining period of 0.3 years.

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Share-Based Compensation
 
The share-based compensation by line item in the accompanying condensed consolidated statements of income is summarized as follows:
 
 Three Months Ended September 30,Nine Months Ended September 30,
 2024202320242023
 (in thousands)
Research and development$2,030 $3,160 $7,815 $4,229 
Sales and marketing2,778 1,920 7,485 2,432 
General and administrative8,977 16,257 32,041 17,841 
Total share-based compensation$13,785 $21,337 $47,341 $24,502 
 
As of September 30, 2024, the Company had $38.3 million unrecognized share-based compensation cost related to RSUs granted under the 2023 Plan that will be recognized over a weighted average period of 1.3 years. Of this unrecognized share-based compensation cost, $19.9 million related to RSUs granted under the 2023 Plan with performance conditions. There was no unrecognized share-based compensation cost related to RSUs granted under the 2023 Plan with market conditions.

For those RSUs with service conditions, performance conditions or a combination of both, the grant date fair value was measured based on the quoted price of our ordinary shares at the date of grant. The weighted average grant date fair value of these awards for the nine months ended September 30, 2024 was $63.52 per share.

The total grant-date fair value of RSUs vested during the nine months ended September 30, 2024 was $48.8 million.
 
12. Income Taxes
 
The Company recorded a provision for income taxes of $42.0 million and $57.0 million for the three months ended September 30, 2024 and 2023, respectively, and $97.5 million and $85.2 million for the nine months ended September 30, 2024 and 2023, respectively. The Company’s effective tax rate (“ETR”) was 24.1% and 75.3% for the three months ended September 30, 2024 and 2023, respectively, and 23.9% and 42.0% for the nine months ended September 30, 2024 and 2023, respectively. This decrease in the ETR was primarily related to the impacts of the separation and distribution and refinancing, such as withholding taxes and transaction costs, in the prior year.
 
13. Net Income Per Share
 
On July 31, 2023, in connection with the separation from JS Global, 138,982,872 ordinary shares of SharkNinja, Inc. were distributed to JS Global shareholders. The distributed share amount of SharkNinja, Inc. is utilized for the calculation of basic and diluted net income per share of the Company for all periods presented prior to the separation and distribution from JS Global. For the three and nine months ended September 30, 2024 and 2023, these shares are treated as issued and outstanding for purposes of calculating historical net income per share. For periods prior to the separation and distribution, it is assumed that there are no dilutive equity instruments as there were no equity awards of SharkNinja, Inc. outstanding prior to the separation and distribution.
 
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The following table sets forth the computation of basic and diluted net income per share for the periods presented:
 
 Three Months Ended September 30,Nine Months Ended September 30,
 2024202320242023
  
 (in thousands, except share and per share data)
Numerator:
Net income$132,329 $18,722 $309,989 $117,754 
Denominator:
Weighted-average shares used in computing net income per share, basic140,114,282 139,073,181 139,818,196 139,059,206 
Dilutive effect of RSUs1,191,717 357,624 1,155,866 120,518 
Weighted-average shares used in computing net income per share, diluted141,305,999 139,430,805 140,974,062 139,179,724 
Net income per share, basic$0.94 $0.13 $2.22 $0.85 
Net income per share, diluted$0.94 $0.13 $2.20 $0.85 
 
Potential ordinary shares of certain performance-based and market-based RSUs of approximately 736,405 and 959,263 for the three and nine months ended September 30, 2024, respectively, for which all targets required to trigger vesting had not been achieved, were excluded from the calculations of weighted average shares used in computing diluted net income per share.
 
14. Related Party Transactions
 
Transactions with JS Global

Prior to the separation, the Company operated as part of JS Global’s broader corporate organization rather than as a stand-alone public company and engaged in various transactions with JS Global entities. Following the separation and distribution, JS Global continues to be a related party due to a common shareholder that has majority control of both the Company and JS Global. Our arrangements with JS Global entities and/or other related persons or entities as of the separation are described below.

Supplier Agreements
 
The Company historically relied on a JS Global purchasing office entity to source finished goods on the Company’s behalf and to provide certain procurement and quality control services. Additionally, the Company purchases certain finished goods directly from a subsidiary of JS Global. Finished goods purchased by the Company from JS Global entities amounted to $49.1 million and $242.8 million for the three months ended September 30, 2024 and 2023, respectively, and $156.2 million and $952.0 million for the nine months ended September 30, 2024 and 2023, respectively. In connection with these agreements, the Company historically incurred costs related to certain procurement and quality control activities that were reimbursed by JS Global entities. For the three and nine months ended September 30, 2024, JS Global entities made no payments of this nature to the Company. In comparison, for the three and nine months ended September 30, 2023, JS Global entities paid the Company $2.0 million and $18.0 million, respectively, which were recorded as a reduction to cost of sales for services rendered under these agreements.

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Sourcing Services Agreement

In connection with the separation, the Company entered into a sourcing services agreement with JS Global. Pursuant to the agreement, the Company procures products from certain suppliers in the Asia-Pacific region (“APAC”), and JS Global provides coordination, process management and relationship management support to us with respect to such suppliers. The Company retains the right to procure such products and services from third parties. The Company pays JS Global a service fee based on the aggregate amount of products procured by the Company from such suppliers managed by JS Global under the agreement. The Sourcing Services Agreement has a term commencing July 28, 2023 and ending on June 30, 2025. The Company will pay JS Global the following: (i) for the period July 28, 2023 to June 30, 2024, an amount equal to 4% of the procurement amount during such period; and (ii) for the period from July 1, 2024 until December 31, 2024, an amount equal to 2% of the procurement amount during such period; and (iii) for the period from January 1, 2025 until the end of the Term, an amount equal to 1% of the procurement amount during such period. Fees incurred by the Company related to this agreement were $7.9 million and $19.0 million for the three months ended September 30, 2024 and 2023, respectively, and $32.9 million and $19.0 million for the nine months ended September 30, 2024 and 2023, respectively, and were included in cost of inventories.

Brand License Agreement

In connection with the separation, the Company entered into a brand license agreement with JS Global, in which the Company granted to JS Global the non-exclusive rights to obtain, produce and source, and the exclusive rights to distribute and sell, our brands of products in certain international markets in APAC. The brand license agreement has a term of 20 years from the date of the separation. Under this agreement, JS Global pays to SharkNinja a royalty of 3% of net sales of licensed products. The Company earned royalty income of $4.6 million and $0.6 million for the three months ended September 30, 2024 and 2023, respectively, and $7.0 million and $0.6 million for the nine months ended September 30, 2024 and 2023, respectively, which was included in net sales.

Product Development Agreements

The Company has historically utilized JS Global subsidiaries for certain research and development services. For these services, the Company paid $0.9 million and $0.8 million for the three months ended September 30, 2024 and 2023, respectively, and $2.6 million for the nine months ended September 30, 2024 and 2023.

In connection with the separation, the Company entered into an agreement with JS Global to provide certain research and development, and related product management, services to JS Global entities related to the distribution of products in APAC. Under this agreement, the Company earned product development service fees of $0.5 million and $0.2 million for the three months ended September 30, 2024 and 2023, respectively, and $1.5 million and $0.2 million for the nine months ended September 30, 2024 and 2023, respectively, which were recorded as a reduction of research and development expenses.

Transition Services Agreement

In connection with the separation, the Company entered into a transition services agreement with JS Global pursuant to which the Company provides certain transition services to JS Global, in order to facilitate the transition of the separated JS Global business. The services are provided on a transitional basis for a term of twenty-four months, subject to a three-month extension by JS Global. Service fees related to this agreement were $0.8 million and $0.5 million for the three months ended September 30, 2024 and 2023, respectively, and $2.3 million and $0.5 million for the nine months ended September 30, 2024 and 2023, respectively, and were recorded as a reduction of general and administrative expenses.

Transactions with Former Parent
 
See “Note 11 - Shareholders' Equity and Equity Incentive Plan” for details on the Company’s distributions to Former Parent.
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The following is a summary of the related party transactions associated with JS Global:

Three Months Ended September 30,Nine Months Ended September 30,
2024202320242023
(in thousands)
Related party revenue
Sale of goods$— $13 $— $1,264 
Royalty income4,612 607 6,962 607 
Related party expense (income)
Cost of sales - purchases of goods and services, net$56,997 $259,784 $189,149 $953,013 
Research and development services, net355 640 1,095 2,405 
General and administrative(750)(500)(2,250)(500)

 As of
 September 30, 2024December 31, 2023
  
 (in thousands)
Related party assets  
Accounts receivable, net$7,948 $3,594 
Related party liabilities
Accounts payable$52,740 $101,538 
 

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