Product development decreased 11.7% quarter-over-quarter and 37.9% year-over-year to $3.6 million, mainly due to a decrease in personnel expenses. We remain excited by our innovation strategy and look forward to leading the CPG industry sustainability. SG&A expenses decreased 15.5% quarter-over-quarter and 35.8% year-over-year to $29.7 million. Excluding stock-based compensation and severance, SG&A expense in the quarter would have been $27.9 million or 7.6% less than the second quarter of 2023 and 24.1% less than the same period last year. The quarter-over-quarter decline was mainly due to lower fulfillment costs related to fewer orders and other operating expenses, primarily personnel and insurance. This trend continues to be reflective of our strategy to reduce expenses to focus on profitability.
As a percent of net revenue, SG&A expense would have been 45.3% compared to 45.7% in the second quarter of 2023 and 47.4% in the third quarter of 2022. Our adjusted EBITDA improved to $0.2 million, the first positive quarter for the company as compared to a $2.6 million loss in the second quarter of 2023 and $9.6 million loss — $9.6 million loss in the third quarter of 2022 despite lower sales from our lower advertising spend strategy. Our adjusted EBITDA margin improved to 0.3%, an improvement of 420 basis points quarter-over-quarter and 1,270 basis points year-over-year. The quarter-over-quarter and year-over-year improvements in adjusted EBITDA are due to lower advertising and SG&A expenses, partially offset by a lower gross profit due to less revenue.
We’re extremely proud of these results, reflecting our ability to rapidly transform our bottom line. When we went public last year, we had the goal of achieving profitability during 2024. But we have been able to accelerate this timeline through our disciplined approach across the entire company. I echo just thanks to our exceptional teams across the country for the hard work to reach this milestone. Net loss in the quarter was $9.8 million compared to a net loss of $10.9 million in the second quarter of 2023, and net income of $7.7 million in the third quarter of 2022, following a large reduction in fair value of an earn-out liability. Turning now to the balance sheet. We ended the quarter with $94.7 million in cash, cash equivalents and restricted cash, an increase of $5 million from the previous quarter.
The increase is mainly due to the $10 million investment from Volition Capital, as noted last quarter and $1.2 million of interest income, partially offset by the $3.2 million interest expense outflow and $0.8 million capital expenditures. As noted previously, during the quarter, we received an investment from Volition Capital to strengthen our balance sheet. We received gross proceeds of $10 million in exchange for 10,000 shares of the company’s Series A convertible preferred stock with a conversion price of $2.11 per share. Please refer to our financial statements for the significant provisions of the offer. We finished the quarter with an inventory balance of $32.7 million, down $1.8 million from the end of Q2 2023 — we continue to be pleased with our ability to reprice size our inventory base while striving for further efficiencies as we optimize our working capital.
Furthermore, we did not make any draw on our asset-based loan facility during the third quarter after having taken the minimum draw of $7.5 million in Q1. This facility has a maximum capacity of $35 million, which is calculated from our inventory and accounts receivable balances. Based on current inventory and accounts receivable balances, we have $11.5 million of capacity available. Lastly, assuming a share price of $2.35, our year-to-date average trading price in 2023, we will be able to raise $14 million net of insurance costs under our standby equity purchase agreement. Taking into account market conditions and business priorities, we will evaluate using this capacity strategically to supplement our liquidity. We still continue to feel good about our current liquidity position and our ability to continue executing on our long-term strategy.
Now turning to the outlook. Factoring in our performance to date and our expectations for the remainder of the year, we are offering the following revised guidance. For the 12-month period ending December 31, 2023, we now expect net revenue of $257.5 million to $262.5 million, down from $260 million to $270 million and adjusted EBITDA margin of minus 4.5% to minus 5.5%, an improvement from minus 5% to minus 7% [fees]. Our ability to rapidly transform our P&L gives me confidence to further increase our adjusted EBITDA margin guidance for the rest of the year. However, due to our refined fourth quarter advertising strategy, we are marginally lowering revenue guidance. Moreover, as mentioned previously, we do not expect to be profitable every quarter going forward.
The fourth quarter of this year is expected to turn back to an adjusted EBITDA loss. As we look forward to 2024, we remain confident that our progress this year will allow us to achieve profitable growth in the later part of 2024. We will provide additional commentary for full year ’24 guidance as part of our Q4 earnings. I would like to turn the call back over to Jeff for some closing remarks.
