Company: CRCT
Filing Date: 2025-08-06
Form Type: 10-Q
Source: 0001828962-25-000146
Chunk: 29

Company: Cricut, Inc.
Filing Date: 2025-08-06
Form: 10-Q
Item: Part I, Item 1
Chunk 29
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,128 $19,012 The Company’s recorded inventory reserves as of June 30, 2025 consisted of $2.2 million related to excess connected machines inventory, $30.5 million related to excess accessories and materials inventory, and $5.2 million related to raw materials components. Amounts charged to the reserve account are recorded primarily in cost of revenues.

6.     Accrued Expenses and Other Current Liabilities

Accrued expenses and other current liabilities consist of the following: As ofJune 30,2025As ofDecember 31,2024(in thousands)Customer rebates$24,208 $38,756 Other accrued liabilities and other current liabilities37,449 37,518 Total accrued expenses$61,657 $76,274 

7.    Revolving Credit Facility 

On August 4, 2022, the Company entered into a credit agreement (the “Credit Agreement”) with JPMorgan Chase Bank, N.A, Citigroup N.A., PNC Bank, N.A., KeyBank, N.A., and other parties. The Credit Agreement replaced the Company’s prior asset-based Credit Agreement with JPMorgan Chase Bank, N.A., Citigroup N.A., and Origin Bank. The Credit Agreement provides for a five-year revolving credit facility (the “Credit Facility”) of up to $300.0 million, maturing on August 4, 2027. In addition, during the term of the Credit Agreement, the Company may increase the aggregate amount of the Credit Facility by up to an additional $150.0 million, (for maximum aggregate lender commitments of up to $450.0 million), subject to customary conditions under the Credit Agreement, including obtaining a consent from participating lenders (or another lender, if applicable) to such increase. The Credit Facility may be used to issue letters of credit and for other business purposes, including working capital needs. The current unused fee rate is 0.175% on per annum basis.  As of June 30, 2025, and December 31, 2024 total unamortized debt issuance costs were $0.7 million and $0.8 million, respectively.The Credit Agreement is collateralized by substantially all of the Company’s assets and contains affirmative and negative covenants, representations and warranties, events of default and other terms customary for loans of this nature. In particular, the Credit Agreement will not permit the leverage