Accounts receivable are recorded at invoiced amounts with standard net terms that range between 30 and 90 days. The Company extends credit to its customers based on an evaluation of a customer’s financial condition and collateral is generally not required. The Company records reserves for credit losses and credit allowances that reduce the value of accounts receivable to fair value.

The allowances for accounts receivable consisted of the following:

The Company is exposed to credit losses primarily through the sale of products. The Company’s methodology for expected losses on accounts receivable uses historical collection experience, current and future economic market conditions, and a review of the current status of customers’ trade accounts receivable. Due to the short-term nature of accounts receivable, the estimate of the amount of accounts receivable that may not be collected is based on aging of the account receivable balances and the financial condition of customers. Additionally, specific allowance amounts are established to record the appropriate provision for customers that have a higher probability of default. The Company’s monitoring activities include timely account reconciliation, dispute resolution, payment confirmation, consideration of customers' financial condition and macroeconomic conditions. Balances are written off when determined to be uncollectible. The Company’s allowance for credit losses was $110 at September 30, 2023 and $92 at December 31, 2022.

Inventories are stated at the lower of cost or net realizable value and include material, labor and overhead costs using the first-in, first-out method of costing. Inventories as of September 30, 2023 and December 31, 2022 were composed of raw materials, work-in-process and finished goods. The Company had consigned inventory with customers of $0.3 million and $0.2 million at September 30, 2023 and December 31, 2022, respectively. The Company records allowances to reduce the value of inventory to the lower of cost or net realizable value, including allowances for excess and obsolete inventory. Reserves for excess inventory are calculated based on an estimate of inventory in excess of normal and planned usage. Obsolete reserves are based on identification of inventory where the carrying value is above net realizable value. The allowance for inventory losses was $3.3 million at September 30, 2023 and $3.1 million at December 31, 2022.

Inventories, net consisted of the following:


	September 30, 2023		December 31, 2022
Raw materials	$	8,083	$	9,064
Work-in-process		1,288		1,076
Finished goods		7,126		8,778
Inventories, net	$	16,497	$	18,918

Prepaid assets are stated at cost and are amortized over the useful lives (up to one year) of the assets.

Property and equipment are stated at cost and are depreciated using the straight-line method over the estimated useful lives of the assets. The Company depreciates computer equipment and software licenses over three to five years; office equipment, manufacturing and test equipment, and motor vehicles over five years; furniture and fixtures over seven years; and buildings over 30 years. Leasehold improvements are amortized over the shorter of the corresponding lease term or useful life. Depreciation expense and gains and losses on the disposal of property and equipment are included in cost of revenues and operating expenses in the condensed consolidated statements of operations. Maintenance and repairs are expensed as incurred.

Property and equipment consisted of the following:


	September 30, 2023			December 31, 2022
Building	$	6,922		$	6,922
Computers and office equipment		10,772			10,217
Manufacturing and test equipment		14,192			14,661
Furniture and fixtures		1,491			1,475
Leasehold improvements		1,965			1,965
Motor vehicles		20			20
Total property and equipment		35,362			35,260
Less: Accumulated depreciation and amortization		(27,580	)		(27,026	)
Land		1,770			1,770
Property and equipment, net	$	9,552		$	10,004

Depreciation and amortization expense was approximately $0.5 million and $0.7 million for the three months ended September 30, 2023 and 2022, respectively. Depreciation and amortization expense was approximately $1.6 million and $2.2 million for the nine months ended September 30, 2023 and 2022, respectively. Amortization for finance leases is included in depreciation and amortization expense. See Note 10 for information related to finance leases.

Accrued liabilities consisted of the following:


	September 30, 2023		December 31, 2022
Inventory receipts	$	2,024	$	3,720
Paid time off		1,229		1,001
Payroll and other employee benefits		957		4,318
Professional fees and contractors		607		346
Deferred revenues		522		495
Operating leases		516		527
Employee stock purchase plan		434		232
Warranties		296		317
Income and sales taxes		227		836
Customer refunds for estimated returns		131		235
Real estate taxes		125		158
Finance leases		60		51
Other		234		369
Total	$	7,362	$	12,605

Long-term liabilities consisted of the following:


	September 30, 2023		December 31, 2022
Operating leases	$	2,931	$	3,327
Deferred revenue		173		181
Finance leases		129		73
Other		33		43
Total	$	3,266	$	3,624

September 30, 2023

December 31, 2022

Credit loss provision

Credit allowances

Total allowances