(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification Number) |
Title of Each Class | Trading Symbol | Name of Exchange on which Registered | ||||||
$0.0001 per share |
Large Accelerated Filer | ☐ | ☒ | Non-Accelerated Filer | ☐ | Smaller Reporting Company | ||||||||||||||||||
Emerging Growth Company |
TABLE OF CONTENTS | |||||
Page | |||||
Part II. Other Information | |||||
As of | |||||||||||
September 30, 2024 | December 31, 2023 | ||||||||||
Assets | |||||||||||
Current assets: | |||||||||||
Cash and cash equivalents | $ | $ | |||||||||
Marketable securities | |||||||||||
Accounts receivable, net of allowances of $ | |||||||||||
Inventory | |||||||||||
Prepaid expenses and other current assets | |||||||||||
Total current assets | |||||||||||
Restricted cash | |||||||||||
Lease right-of-use assets | |||||||||||
Property, plant and equipment, net | |||||||||||
Intangible assets, net | |||||||||||
Goodwill | |||||||||||
Other assets, net | |||||||||||
Total assets | $ | $ | |||||||||
Liabilities and Stockholders’ Equity | |||||||||||
Current liabilities: | |||||||||||
Accounts payable | $ | $ | |||||||||
Accrued liabilities | |||||||||||
Deferred revenues | |||||||||||
Current portion of lease liabilities | |||||||||||
Total current liabilities | |||||||||||
Non-current income taxes payable | |||||||||||
Long-term lease liabilities | |||||||||||
Other long-term liabilities | |||||||||||
Total liabilities | |||||||||||
Stockholders' equity: | |||||||||||
Common stock - $ | |||||||||||
Additional paid-in capital | |||||||||||
Accumulated other comprehensive loss | ( | ( | |||||||||
Accumulated deficit | ( | ( | |||||||||
Total stockholders’ equity | |||||||||||
Total liabilities and stockholders’ equity | $ | $ |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||
Revenue: | |||||||||||||||||||||||
Products | $ | $ | $ | $ | |||||||||||||||||||
Development | |||||||||||||||||||||||
Total revenue | |||||||||||||||||||||||
Cost of revenue: | |||||||||||||||||||||||
Products | |||||||||||||||||||||||
Development | |||||||||||||||||||||||
Total cost of revenue | |||||||||||||||||||||||
Gross profit | |||||||||||||||||||||||
Operating expenses: | |||||||||||||||||||||||
Research and development | |||||||||||||||||||||||
Sales, general, and administrative | |||||||||||||||||||||||
Total operating expenses | |||||||||||||||||||||||
Loss from operations | ( | ( | ( | ( | |||||||||||||||||||
Other income: | |||||||||||||||||||||||
Interest income, net | |||||||||||||||||||||||
Other income, net | |||||||||||||||||||||||
Loss before income taxes | ( | ( | ( | ( | |||||||||||||||||||
Income tax expense (benefit) | ( | ||||||||||||||||||||||
Net loss | $ | ( | $ | ( | $ | ( | $ | ( | |||||||||||||||
Net loss per share, basic and diluted | $ | ( | $ | ( | $ | ( | $ | ( | |||||||||||||||
Shares used in per share calculations, basic and diluted | |||||||||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||
Net loss | $ | ( | $ | ( | $ | ( | $ | ( | |||||||||||||||
Other comprehensive income (loss), net of tax: | |||||||||||||||||||||||
Foreign currency translation adjustments | ( | ( | |||||||||||||||||||||
Unrealized gains (losses) on available-for-sale securities | ( | ||||||||||||||||||||||
Comprehensive loss | $ | ( | $ | ( | $ | ( | $ | ( |
Three Months Ended September 30, 2024 | |||||||||||||||||||||||||||||||||||
Common stock | Additional paid-in capital | Accumulated other comprehensive loss | Accumulated deficit | Total stockholders' equity | |||||||||||||||||||||||||||||||
Shares | Amount | ||||||||||||||||||||||||||||||||||
Balance, June 30, 2024 | $ | $ | $ | ( | $ | ( | $ | ||||||||||||||||||||||||||||
Net loss | — | — | — | — | ( | ( | |||||||||||||||||||||||||||||
Issuance of common stock pursuant to exercise of stock options | — | — | — | ||||||||||||||||||||||||||||||||
Issuance of common stock pursuant to vesting of restricted stock awards and units, net of stock withheld for tax | — | ( | — | — | ( | ||||||||||||||||||||||||||||||
Stock-based compensation | — | — | — | — | |||||||||||||||||||||||||||||||
Unrealized losses on available-for-sale securities | — | — | — | ( | — | ( | |||||||||||||||||||||||||||||
Cumulative translation adjustment, net of tax | — | — | — | — | |||||||||||||||||||||||||||||||
Balance, September 30, 2024 | $ | $ | $ | ( | $ | ( | $ |
Nine Months Ended September 30, 2024 | |||||||||||||||||||||||||||||||||||
Common stock | Additional paid-in capital | Accumulated other comprehensive loss | Accumulated deficit | Total stockholders' equity | |||||||||||||||||||||||||||||||
Shares | Amount | ||||||||||||||||||||||||||||||||||
Balance, December 31, 2023 | $ | $ | $ | ( | $ | ( | $ | ||||||||||||||||||||||||||||
Net loss | — | — | — | — | ( | ( | |||||||||||||||||||||||||||||
Issuance of common stock pursuant to exercise of stock options | — | — | — | ||||||||||||||||||||||||||||||||
Issuance of common stock pursuant to vesting of restricted stock awards and units, net of stock withheld for tax | — | ( | — | — | ( | ||||||||||||||||||||||||||||||
Issuance of common stock under the Employee Stock Purchase Plan | — | — | — | ||||||||||||||||||||||||||||||||
Stock-based compensation | — | — | — | — | |||||||||||||||||||||||||||||||
Unrealized gains on available-for-sale securities | — | — | — | — | |||||||||||||||||||||||||||||||
Cumulative translation adjustment, net of tax | — | — | — | — | |||||||||||||||||||||||||||||||
Balance, September 30, 2024 | $ | $ | $ | ( | $ | ( | $ | ||||||||||||||||||||||||||||
Three Months Ended September 30, 2023 | |||||||||||||||||||||||||||||||||||
Common stock | Additional paid-in capital | Accumulated other comprehensive loss | Accumulated deficit | Total stockholders' equity | |||||||||||||||||||||||||||||||
Shares | Amount | ||||||||||||||||||||||||||||||||||
Balance, June 30, 2023 | $ | $ | $ | ( | $ | ( | $ | ||||||||||||||||||||||||||||
Net loss | — | — | — | — | ( | ( | |||||||||||||||||||||||||||||
Issuance of common stock pursuant to exercise of stock options | — | — | — | ||||||||||||||||||||||||||||||||
Issuance of common stock pursuant to vesting of restricted stock awards and units, net of stock withheld for tax | — | ( | — | — | ( | ||||||||||||||||||||||||||||||
Stock-based compensation | — | — | — | — | |||||||||||||||||||||||||||||||
Unrealized gains on available-for-sale securities | — | — | — | — | |||||||||||||||||||||||||||||||
Cumulative translation adjustment, net of tax | — | — | — | ( | — | ( | |||||||||||||||||||||||||||||
Balance, September 30, 2023 | $ | $ | $ | ( | $ | ( | $ |
Nine Months Ended September 30, 2023 | |||||||||||||||||||||||||||||||||||
Common stock | Additional paid-in capital | Accumulated other comprehensive loss | Accumulated deficit | Total stockholders' equity | |||||||||||||||||||||||||||||||
Shares | Amount | ||||||||||||||||||||||||||||||||||
Balance, December 31, 2022 | $ | $ | $ | ( | $ | ( | $ | ||||||||||||||||||||||||||||
Net loss | — | — | — | — | ( | ( | |||||||||||||||||||||||||||||
Issuance of common stock pursuant to exercise of stock options | — | — | — | ||||||||||||||||||||||||||||||||
Issuance of common stock pursuant to vesting of restricted stock awards and units, net of stock withheld for tax | — | ( | — | — | ( | ||||||||||||||||||||||||||||||
Issuance of common stock under the Employee Stock Purchase Plan | — | — | — | ||||||||||||||||||||||||||||||||
Stock-based compensation | — | — | — | — | |||||||||||||||||||||||||||||||
Unrealized gains on available-for-sale securities | — | — | — | — | |||||||||||||||||||||||||||||||
Cumulative translation adjustment, net of tax | — | — | — | ( | — | ( | |||||||||||||||||||||||||||||
Balance, September 30, 2023 | $ | $ | $ | ( | $ | ( | $ | ||||||||||||||||||||||||||||
Nine Months Ended September 30, | ||||||||||||||
2024 | 2023 | |||||||||||||
Cash flows from operating activities: | ||||||||||||||
Net loss | $ | ( | $ | ( | ||||||||||
Adjustments to reconcile net loss to net cash provided by operating activities: | ||||||||||||||
Depreciation | ||||||||||||||
Amortization | ||||||||||||||
Reduction in carrying amount of right-of-use assets | ||||||||||||||
Provision for losses on (recoveries of) accounts receivable | ( | |||||||||||||
Stock-based compensation | ||||||||||||||
Deferred income taxes | ||||||||||||||
Loss on disposal of property, plant and equipment | ||||||||||||||
Changes in operating assets and liabilities: | ||||||||||||||
Accounts receivable, net | ( | |||||||||||||
Inventory | ||||||||||||||
Prepaid expenses and other current assets | ||||||||||||||
Other assets, net | ( | ( | ||||||||||||
Accounts payable | ( | |||||||||||||
Accrued and other long-term liabilities | ||||||||||||||
Deferred revenues | ( | |||||||||||||
Lease liabilities | ( | ( | ||||||||||||
Non-current income taxes payable | ( | |||||||||||||
Net cash provided by operating activities | ||||||||||||||
Cash flows from investing activities: | ||||||||||||||
Purchases of property, plant and equipment | ( | ( | ||||||||||||
Purchase of marketable securities | ( | ( | ||||||||||||
Proceeds from maturities and sales of marketable securities | ||||||||||||||
Net cash used in investing activities | ( | ( | ||||||||||||
Cash flows from financing activities: | ||||||||||||||
Proceeds from employee stock plan purchases | ||||||||||||||
Proceeds from stock option exercises | ||||||||||||||
Tax payments related to stock award issuances | ( | ( | ||||||||||||
Net cash used in financing activities | ( | ( | ||||||||||||
Effect of exchange rate changes on cash | ( | |||||||||||||
Net decrease in cash, cash equivalents, and restricted cash | ( | ( | ||||||||||||
Cash, cash equivalents, and restricted cash, beginning of period | ||||||||||||||
Cash, cash equivalents, and restricted cash, end of period | $ | $ | ||||||||||||
Supplemental disclosures: | ||||||||||||||
Cash paid for interest, net | $ | $ | ||||||||||||
Cash paid for income taxes | ||||||||||||||
Operating cash outflows from operating leases | ||||||||||||||
Right-of-use assets obtained in exchange for lease liabilities | ||||||||||||||
Accrued purchases of property, equipment and patents | ||||||||||||||
Reconciliation of cash, cash equivalents, and restricted cash: | ||||||||||||||
Cash and cash equivalents | $ | |||||||||||||
Restricted cash | ||||||||||||||
Total cash, cash equivalents, and restricted cash | $ | $ | ||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||
Industrial | $ | $ | $ | $ | |||||||||||||||||||
Microfabrication | |||||||||||||||||||||||
Aerospace and Defense | |||||||||||||||||||||||
$ | $ | $ | $ |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||
North America | $ | $ | $ | $ | |||||||||||||||||||
China | |||||||||||||||||||||||
Rest of World | |||||||||||||||||||||||
$ | $ | $ | $ |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||
Point in time | $ | $ | $ | $ | |||||||||||||||||||
Over time | |||||||||||||||||||||||
$ | $ | $ | $ |
Balance Sheet Classification | As of | ||||||||||||||||
September 30, 2024 | December 31, 2023 | ||||||||||||||||
Contract assets | Prepaid expenses and other current assets | $ | $ | ||||||||||||||
Contract liabilities | Deferred revenues and other long-term liabilities |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||
U.S. Government* | |||||||||||||||||||||||
Raytheon Technologies | (1) | (1) | (1) | ||||||||||||||||||||
KORD Technologies | (1) | (1) |
September 30, 2024 | ||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||
Cash Equivalents: | ||||||||||||||
Money market securities | $ | $ | $ | $ | ||||||||||
Commercial paper | ||||||||||||||
Marketable Securities: | ||||||||||||||
U.S. treasuries | ||||||||||||||
Total | $ | $ | $ | $ |
December 31, 2023 | ||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||
Cash Equivalents: | ||||||||||||||
Money market securities | $ | $ | $ | $ | ||||||||||
Commercial paper | ||||||||||||||
Marketable Securities: | ||||||||||||||
U.S. treasuries | ||||||||||||||
Total | $ | $ | $ | $ |
As of | |||||||||||
September 30, 2024 | December 31, 2023 | ||||||||||
Raw materials | $ | $ | |||||||||
Work in process and semi-finished goods | |||||||||||
Finished goods | |||||||||||
$ | $ |
Useful life | As of | ||||||||||||||||
(years) | September 30, 2024 | December 31, 2023 | |||||||||||||||
Automobiles | $ | $ | |||||||||||||||
Computer hardware and software | |||||||||||||||||
Manufacturing and lab equipment | |||||||||||||||||
Office equipment and furniture | |||||||||||||||||
Leasehold and building improvements | |||||||||||||||||
Buildings | |||||||||||||||||
Land | N/A | ||||||||||||||||
Accumulated depreciation | ( | ( | |||||||||||||||
$ | $ |
Estimated useful life (in years) | As of | ||||||||||||||||
September 30, 2024 | December 31, 2023 | ||||||||||||||||
Patents | $ | $ | |||||||||||||||
Development programs | |||||||||||||||||
Developed technology | |||||||||||||||||
Accumulated amortization | ( | ( | |||||||||||||||
$ | $ |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||
Amortization expense | $ | $ | $ | $ |
2024 | $ | ||||
2025 | |||||
2026 | |||||
Thereafter | |||||
$ |
Laser Products | Advanced Development | Totals | |||||||||||||||
Balance, December 31, 2023 | $ | $ | $ | ||||||||||||||
Currency exchange rate adjustment | |||||||||||||||||
Balance, September 30, 2024 | $ | $ | $ |
As of | |||||||||||
September 30, 2024 | December 31, 2023 | ||||||||||
Accrued payroll and benefits | $ | $ | |||||||||
Product warranty, current | |||||||||||
Other accrued expenses | |||||||||||
$ | $ |
Nine Months Ended September 30, | |||||||||||
2024 | 2023 | ||||||||||
Product warranty liability, beginning | $ | $ | |||||||||
Warranty charges incurred, net | ( | ( | |||||||||
Provision for warranty charges, net of adjustments | |||||||||||
Product warranty liability, ending | |||||||||||
Less: current portion of product warranty liability | ( | ( | |||||||||
Non-current portion of product warranty liability | $ | $ |
Number of Restricted Stock Units (Thousands) | Weighted-Average Grant Date Fair Value | ||||||||||||||||
Balance, December 31, 2023 | $ | ||||||||||||||||
Granted | |||||||||||||||||
Vested | ( | ||||||||||||||||
Forfeited | ( | ||||||||||||||||
Balance, September 30, 2024 |
Number of Restricted Stock Awards (Thousands) | Weighted-Average Grant Date Fair Value | ||||||||||||||||
Balance, December 31, 2023 | $ | ||||||||||||||||
Vested | ( | ||||||||||||||||
Balance, September 30, 2024 |
Number of Options (Thousands) | Weighted-Average Exercise Price | Weighted-Average Remaining Contractual Term (Years) | Aggregate Intrinsic Value (Thousands) | ||||||||||||||||||||
Outstanding, December 31, 2023 | $ | $ | |||||||||||||||||||||
Options exercised | ( | ||||||||||||||||||||||
Outstanding, September 30, 2024 | |||||||||||||||||||||||
Options exercisable at September 30, 2024 | |||||||||||||||||||||||
Options vested as of September 30, 2024, and expected to vest after September 30, 2024 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||
Cost of revenues | $ | $ | $ | $ | |||||||||||||||||||
Research and development | |||||||||||||||||||||||
Sales, general and administrative | |||||||||||||||||||||||
$ | $ | $ | $ |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||
2024 | 2023 | 2024 | 2023 | |||||||||||||||||||||||
Lease expense: | ||||||||||||||||||||||||||
Operating lease expense | $ | $ | $ | $ | ||||||||||||||||||||||
Short-term lease expense | ||||||||||||||||||||||||||
Variable and other lease expense | ||||||||||||||||||||||||||
$ | $ | $ | $ |
2024 | $ | ||||
2025 | |||||
2026 | |||||
2027 | |||||
2028 | |||||
Thereafter | |||||
Total minimum lease payments | |||||
Less: interest | ( | ||||
Present value of net minimum lease payments | |||||
Less: current portion of lease liabilities | ( | ||||
Total long-term lease liabilities | $ |
Three Months Ended September 30, 2024 | |||||||||||||||||||||||
Laser Products | Advanced Development | Corporate and Other | Totals | ||||||||||||||||||||
Revenue | $ | $ | $ | $ | |||||||||||||||||||
Gross profit | $ | $ | $ | ( | $ | ||||||||||||||||||
Gross margin | % | % | NM* | % |
Nine Months Ended September 30, 2024 | |||||||||||||||||||||||
Laser Products | Advanced Development | Corporate and Other | Totals | ||||||||||||||||||||
Revenue | $ | $ | $ | $ | |||||||||||||||||||
Gross profit | $ | $ | $ | ( | $ | ||||||||||||||||||
Gross margin | % | % | NM* | % |
Three Months Ended September 30, 2023 | |||||||||||||||||||||||
Laser Products | Advanced Development | Corporate and Other | Totals | ||||||||||||||||||||
Revenue | $ | $ | $ | $ | |||||||||||||||||||
Gross profit | $ | $ | $ | ( | $ | ||||||||||||||||||
Gross margin | % | % | NM* | % |
Nine Months Ended September 30, 2023 | |||||||||||||||||||||||
Laser Products | Advanced Development | Corporate and Other | Totals | ||||||||||||||||||||
Revenue | $ | $ | $ | $ | |||||||||||||||||||
Gross profit | $ | $ | $ | ( | $ | ||||||||||||||||||
Gross margin | % | % | NM* | % |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||
Restricted stock units and awards | |||||||||||||||||||||||
Common stock options | |||||||||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||
Revenue: | |||||||||||||||||||||||
Products | 73.3 | % | 75.3 | % | 69.4 | % | 75.2 | % | |||||||||||||||
Development | 26.7 | 24.7 | 30.6 | 24.8 | |||||||||||||||||||
Total revenue | 100.0 | 100.0 | 100.0 | 100.0 | |||||||||||||||||||
Cost of revenue: | |||||||||||||||||||||||
Products | 52.2 | 57.3 | 50.6 | 53.7 | |||||||||||||||||||
Development | 25.4 | 23.1 | 28.3 | 23.3 | |||||||||||||||||||
Total cost of revenue | 77.6 | 80.4 | 78.9 | 77.0 | |||||||||||||||||||
Gross profit | 22.4 | 19.6 | 21.1 | 23.0 | |||||||||||||||||||
Operating expenses: | |||||||||||||||||||||||
Research and development | 20.2 | 21.2 | 22.3 | 21.5 | |||||||||||||||||||
Sales, general, and administrative | 23.2 | 23.2 | 24.7 | 21.9 | |||||||||||||||||||
Total operating expenses | 43.4 | 44.4 | 47.0 | 43.5 | |||||||||||||||||||
Loss from operations | (21.0) | (24.7) | (25.9) | (20.5) | |||||||||||||||||||
Other income: | |||||||||||||||||||||||
Interest income, net | 0.7 | 0.6 | 0.9 | 0.6 | |||||||||||||||||||
Other income, net | 2.4 | 1.1 | 1.7 | 1.3 | |||||||||||||||||||
Loss before income taxes | (17.9) | (23.1) | (23.3) | (18.6) | |||||||||||||||||||
Income tax expense (benefit) | 0.5 | 0.4 | 0.3 | (0.6) | |||||||||||||||||||
Net loss | (18.4) | % | (23.5) | % | (23.6) | % | (18.0) | % |
Three Months Ended September 30, | Change | ||||||||||||||||||||||||||||
2024 | % of Revenue | 2023 | % of Revenue | $ | % | ||||||||||||||||||||||||
Industrial | $ | 11,588 | 20.6 | % | $ | 19,607 | 38.7 | % | $ | (8,019) | (40.9) | % | |||||||||||||||||
Microfabrication | 14,263 | 25.4 | 12,000 | 23.7 | 2,263 | 18.9 | |||||||||||||||||||||||
Aerospace and Defense | 30,278 | 54.0 | 19,027 | 37.6 | 11,251 | 59.1 | |||||||||||||||||||||||
$ | 56,129 | 100.0 | % | $ | 50,634 | 100.0 | % | $ | 5,495 | 10.9 | % |
Nine Months Ended September 30, | Change | ||||||||||||||||||||||||||||
2024 | % of Revenue | 2023 | % of Revenue | Amount | % | ||||||||||||||||||||||||
Industrial | $ | 36,478 | 24.1 | % | $ | 56,078 | 35.5 | % | $ | (19,600) | (35.0) | % | |||||||||||||||||
Microfabrication | 35,276 | 23.4 | 37,285 | 23.6 | (2,009) | (5.4) | |||||||||||||||||||||||
Aerospace and Defense | 79,413 | 52.5 | 64,666 | 40.9 | 14,747 | 22.8 | |||||||||||||||||||||||
$ | 151,167 | 100.0 | % | $ | 158,029 | 100.0 | % | $ | (6,862) | (4.3) | % |
Three Months Ended September 30, | Change | ||||||||||||||||||||||||||||
2024 | % of Revenue | 2023 | % of Revenue | $ | % | ||||||||||||||||||||||||
Laser Products | $ | 41,132 | 73.3 | % | $ | 38,103 | 75.3 | % | $ | 3,029 | 7.9 | % | |||||||||||||||||
Advanced Development | 14,997 | 26.7 | 12,531 | 24.7 | 2,466 | 19.7 | |||||||||||||||||||||||
$ | 56,129 | 100.0 | % | $ | 50,634 | 100.0 | % | $ | 5,495 | 10.9 | % |
Nine Months Ended September 30, | Change | ||||||||||||||||||||||||||||
2024 | % of Revenue | 2023 | % of Revenue | Amount | % | ||||||||||||||||||||||||
Laser Products | $ | 104,960 | 69.4 | % | $ | 118,802 | 75.2 | % | $ | (13,842) | (11.7) | % | |||||||||||||||||
Advanced Development | 46,207 | 30.6 | 39,227 | 24.8 | 6,980 | 17.8 | |||||||||||||||||||||||
$ | 151,167 | 100.0 | % | $ | 158,029 | 100.0 | % | $ | (6,862) | (4.3) | % |
Three Months Ended September 30, | Change | ||||||||||||||||||||||||||||
2024 | % of Revenue | 2023 | % of Revenue | $ | % | ||||||||||||||||||||||||
North America | $ | 36,332 | 64.7 | % | $ | 31,330 | 61.9 | % | $ | 5,002 | 16.0 | % | |||||||||||||||||
China | 2,371 | 4.2 | 2,624 | 5.2 | (253) | (9.6) | |||||||||||||||||||||||
Rest of World | 17,426 | 31.1 | 16,680 | 32.9 | 746 | 4.5 | |||||||||||||||||||||||
$ | 56,129 | 100.0 | % | $ | 50,634 | 100.0 | % | $ | 5,495 | 10.9 | % |
Nine Months Ended September 30, | Change | ||||||||||||||||||||||||||||
2024 | % of Revenue | 2023 | % of Revenue | Amount | % | ||||||||||||||||||||||||
North America | $ | 100,696 | 66.6 | % | $ | 94,750 | 60.0 | % | $ | 5,946 | 6.3 | % | |||||||||||||||||
China | 8,877 | 5.9 | 9,134 | 5.8 | (257) | (2.8) | |||||||||||||||||||||||
Rest of World | 41,594 | 27.5 | 54,145 | 34.2 | (12,551) | (23.2) | |||||||||||||||||||||||
$ | 151,167 | 100.0 | % | $ | 158,029 | 100.0 | % | $ | (6,862) | (4.3) | % |
Three Months Ended September 30, 2024 | ||||||||||||||||||||||||||
Laser Products | Advanced Development | Corporate and Other | Total | |||||||||||||||||||||||
Gross profit | $ | 12,475 | $ | 704 | $ | (629) | $ | 12,550 | ||||||||||||||||||
Gross margin | 30.3 | % | 4.7 | % | NM* | 22.4 | % |
Nine Months Ended September 30, 2024 | |||||||||||||||||||||||
Laser Products | Advanced Development | Corporate and Other | Total | ||||||||||||||||||||
Gross profit | $ | 30,261 | $ | 3,456 | $ | (1,829) | $ | 31,888 | |||||||||||||||
Gross margin | 28.8 | % | 7.5 | % | NM* | 21.1 | % |
Three Months Ended September 30, 2023 | ||||||||||||||||||||||||||
Laser Products | Advanced Development | Corporate and Other | Total | |||||||||||||||||||||||
Gross profit | $ | 9,596 | $ | 850 | $ | (508) | $ | 9,938 | ||||||||||||||||||
Gross margin | 25.2 | % | 6.8 | % | NM* | 19.6 | % |
Nine Months Ended September 30, 2023 | |||||||||||||||||||||||
Laser Products | Advanced Development | Corporate and Other | Total | ||||||||||||||||||||
Gross profit | $ | 35,860 | $ | 2,320 | $ | (1,871) | $ | 36,309 | |||||||||||||||
Gross margin | 30.2 | % | 5.9 | % | NM* | 23.0 | % |
Three Months Ended September 30, | Change | ||||||||||||||||||||||
2024 | 2023 | $ | % | ||||||||||||||||||||
Research and development | $ | 11,328 | $ | 10,744 | $ | 584 | 5.4 | % |
Nine Months Ended September 30, | Change | ||||||||||||||||||||||
2024 | 2023 | Amount | % | ||||||||||||||||||||
Research and development | $ | 33,723 | $ | 34,049 | $ | (326) | (1.0) | % |
Three Months Ended September 30, | Change | ||||||||||||||||||||||
2024 | 2023 | $ | % | ||||||||||||||||||||
Sales, general, and administrative | $ | 13,021 | $ | 11,725 | $ | 1,296 | 11.1 | % |
Nine Months Ended September 30, | Change | ||||||||||||||||||||||
2024 | 2023 | Amount | % | ||||||||||||||||||||
Sales, general, and administrative | $ | 37,372 | $ | 34,684 | $ | 2,688 | 7.7 | % |
Three Months Ended September 30, | Change | ||||||||||||||||||||||
2024 | 2023 | $ | % | ||||||||||||||||||||
Interest income, net | $ | 394 | $ | 303 | $ | 91 | 30.0% |
Nine Months Ended September 30, | Change | ||||||||||||||||||||||
2024 | 2023 | Amount | % | ||||||||||||||||||||
Interest income, net | $ | 1,308 | $ | 990 | $ | 318 | 32.1 | % |
Three Months Ended September 30, | Change | ||||||||||||||||||||||
2024 | 2023 | $ | % | ||||||||||||||||||||
Other income, net | $ | 1,331 | $ | 536 | $ | 795 | 148.3 | % |
Nine Months Ended September 30, | Change | ||||||||||||||||||||||
2024 | 2023 | Amount | % | ||||||||||||||||||||
Other income, net | $ | 2,594 | $ | 1,997 | $ | 597 | 29.9 | % |
Three Months Ended September 30, | Change | ||||||||||||||||||||||
2024 | 2023 | $ | % | ||||||||||||||||||||
Income tax expense (benefit) | $ | 261 | $ | 187 | $ | 74 | 39.6 | % |
Nine Months Ended September 30, | Change | ||||||||||||||||||||||
2024 | 2023 | Amount | % | ||||||||||||||||||||
Income tax expense (benefit) | $ | 525 | $ | (1,005) | $ | 1,530 | 152.2 | % |
Nine Months Ended September 30, | |||||||||||
2024 | 2023 | ||||||||||
Net cash provided by operating activities | $ | 1,528 | $ | 9,687 | |||||||
Net cash used in investing activities | (10,923) | (13,163) | |||||||||
Net cash used in financing activities | (2,369) | (2,062) | |||||||||
Effect of exchange rate changes on cash | 12 | (198) | |||||||||
Net decrease in cash, cash equivalents and restricted cash | $ | (11,752) | $ | (5,736) |
Exhibit Number | Incorporated by Reference | Filed Herewith | ||||||||||||||||||
Description | Form | File No. | Exhibit | Filing Date | ||||||||||||||||
10.1 | 8-K | 001-38462 | 10.1 | September 27, 2024 | ||||||||||||||||
31.1 | X | |||||||||||||||||||
31.2 | X | |||||||||||||||||||
32.1* | X | |||||||||||||||||||
101.INS | Inline XBRL Instance Document (the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document) | X | ||||||||||||||||||
101.SCH | Inline XBRL Taxonomy Extension Schema Document | X | ||||||||||||||||||
101.CAL | Inline XBRL Taxonomy Extension Calculation Linkbase Document. | X | ||||||||||||||||||
101.DEF | Inline XBRL Taxonomy Extension Definition Linkbase Document | X | ||||||||||||||||||
101.LAB | Inline XBRL Taxonomy Extension Label Linkbase Document | X | ||||||||||||||||||
101.PRE | Inline XBRL Taxonomy Extension Presentation Linkbase Document | X | ||||||||||||||||||
104 | Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101) | X |
* | The certifications furnished in Exhibit 32.1 hereto are deemed to accompany this Quarterly Report on Form 10-Q and will not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, except to the extent that the registrant specifically incorporates it by reference. |
NLIGHT, INC. | ||||||||
(Registrant) | ||||||||
November 8, 2024 | By: | /s/ SCOTT KEENEY | ||||||
Date | Scott Keeney | |||||||
President and Chief Executive Officer (Principal Executive Officer) | ||||||||
November 8, 2024 | By: | /s/ JOSEPH CORSO | ||||||
Date | Joseph Corso | |||||||
Chief Financial Officer (Principal Financial Officer) | ||||||||
November 8, 2024 | By: | /s/ JAMES NIAS | ||||||
Date | James Nias | |||||||
Chief Accounting Officer (Principal Accounting Officer) | ||||||||
Date: November 8, 2024 | ||
/s/ SCOTT KEENEY | ||
Scott Keeney | ||
President, Chief Executive Officer and Chairman (Principal Executive Officer) |
Date: November 8, 2024 | ||
/s/ JOSEPH CORSO | ||
Joseph Corso | ||
Chief Financial Officer (Principal Financial Officer) |
/s/ SCOTT KEENEY | |||||
Scott Keeney | |||||
President, Chief Executive Officer and Chairman (Principal Executive Officer) |
/s/ JOSEPH CORSO | |||||
Joseph Corso | |||||
Chief Financial Officer (Principal Financial Officer) |
Consolidated Balance Sheets (Parenthetical) - USD ($) shares in Thousands, $ in Thousands |
Sep. 30, 2024 |
Dec. 31, 2023 |
---|---|---|
Statement of Financial Position [Abstract] | ||
Accounts receivable, net of allowances | $ 1,810 | $ 315 |
Common stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized (in shares) | 190,000 | 190,000 |
Common stock, shares issued (in shares) | 48,343 | 47,266 |
Common stock, shares outstanding (in shares) | 48,343 | 47,266 |
Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2024 |
Sep. 30, 2023 |
Sep. 30, 2024 |
Sep. 30, 2023 |
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Total revenue | $ 56,129 | $ 50,634 | $ 151,167 | $ 158,029 |
Total cost of revenue | 43,579 | 40,696 | 119,279 | 121,720 |
Gross profit | 12,550 | 9,938 | 31,888 | 36,309 |
Operating expenses: | ||||
Research and development | 11,328 | 10,744 | 33,723 | 34,049 |
Sales, general, and administrative | 13,021 | 11,725 | 37,372 | 34,684 |
Total operating expenses | 24,349 | 22,469 | 71,095 | 68,733 |
Loss from operations | (11,799) | (12,531) | (39,207) | (32,424) |
Other income: | ||||
Interest income, net | 394 | 303 | 1,308 | 990 |
Other income, net | 1,331 | 536 | 2,594 | 1,997 |
Loss before income taxes | (10,074) | (11,692) | (35,305) | (29,437) |
Income tax expense (benefit) | 261 | 187 | 525 | (1,005) |
Net loss | $ (10,335) | $ (11,879) | $ (35,830) | $ (28,432) |
Net loss per share, basic (in dollars per share) | $ (0.21) | $ (0.26) | $ (0.75) | $ (0.62) |
Net loss per share, diluted (in dollars per share) | $ (0.21) | $ (0.26) | $ (0.75) | $ (0.62) |
Shares used in per share calculations, basic (in shares) | 48,133 | 46,403 | 47,679 | 45,857 |
Shares used in per share calculations, diluted (in shares) | 48,133 | 46,403 | 47,679 | 45,857 |
Products | ||||
Total revenue | $ 41,132 | $ 38,103 | $ 104,960 | $ 118,802 |
Total cost of revenue | 29,286 | 29,015 | 76,528 | 84,813 |
Development | ||||
Total revenue | 14,997 | 12,531 | 46,207 | 39,227 |
Total cost of revenue | $ 14,293 | $ 11,681 | $ 42,751 | $ 36,907 |
Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2024 |
Sep. 30, 2023 |
Sep. 30, 2024 |
Sep. 30, 2023 |
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Statement of Comprehensive Income [Abstract] | ||||
Net loss | $ (10,335) | $ (11,879) | $ (35,830) | $ (28,432) |
Other comprehensive income (loss), net of tax: | ||||
Foreign currency translation adjustments | 335 | (131) | 47 | (816) |
Unrealized gains (losses) on available-for-sale securities | (216) | 21 | 42 | 339 |
Comprehensive loss | $ (10,216) | $ (11,989) | $ (35,741) | $ (28,909) |
Basis of Presentation and New Accounting Pronouncements |
9 Months Ended |
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Sep. 30, 2024 | |
Accounting Policies [Abstract] | |
Basis of Presentation and New Accounting Pronouncements | Basis of Presentation and New Accounting Pronouncements Basis of Presentation The accompanying unaudited consolidated financial statements of nLIGHT, Inc. and our wholly-owned subsidiaries have been prepared in accordance with accounting principles generally accepted in the United States of America (U.S. GAAP) and pursuant to the rules and regulations of the Securities and Exchange Commission (SEC). The unaudited financial information reflects, in the opinion of management, all adjustments necessary for a fair presentation of financial position, results of operations, stockholders’ equity, and cash flows for the interim periods presented. The results reported for the interim period presented are not necessarily indicative of results that may be expected for the full year. These consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2023. Critical Accounting Policies Our critical accounting policies have not materially changed during the nine months ended September 30, 2024, from those disclosed in our Annual Report on Form 10-K for the year ended December 31, 2023. New Accounting Pronouncements ASU 2023-07 In November 2023, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2023-07, Improvements to Reportable Segment Disclosures. 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. We will adopt ASU 2023-07 in the fourth quarter of 2024 using a retrospective transition method. We are currently evaluating the impact of this guidance on our consolidated financial statements. ASU 2023-09 In December 2023, the FASB issued ASU 2023-09, Improvements to Income Tax Disclosures. This ASU requires enhanced jurisdictional and other disaggregated disclosures for the effective tax rate reconciliation and income taxes paid and is effective for fiscal years beginning after December 15, 2024. This ASU requires additional disclosures and, accordingly, we do not expect the adoption of ASU 2023-09 to have a material effect on our financial position, results of operations or cash flows.
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Revenue |
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Revenue from Contract with Customer [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue | Revenue We recognize revenue upon transferring control of products and services and the amounts recognized reflect the consideration we expect to be entitled to receive in exchange for these products and services. We consider customer purchase orders, which in some cases are governed by master sales agreements, to be the contracts with a customer. As part of our consideration of the contract, we evaluate certain factors, including the customer's ability to pay (or credit risk). For each contract, we consider the promise to transfer products, each of which is distinct, as the identified performance obligations. We allocate the transaction price to each distinct product based on its relative standalone selling price. Master sales agreements or purchase orders from customers could include a single product or multiple products. Regardless, the contracted price with the customer is agreed to at the individual product level outlined in the customer contract or purchase order. We do not bundle prices; however, we do negotiate with customers on pricing for the same products based on a variety of factors (e.g., level of contractual volume). We have concluded that the prices negotiated with each individual customer are representative of the stand-alone selling price of the product. We often receive orders with multiple delivery dates that may extend across several reporting periods. We allocate the transaction price of the contract to each delivery based on the product standalone selling price and invoice for each scheduled delivery upon shipment or delivery and recognize revenues for such delivery at that point, when transfer of control has occurred. As scheduled delivery dates are generally within one year, under the optional exemption provided by ASC 606-10-50-14a, revenues allocated to future shipments of partially completed contracts are not disclosed as performance obligations for point in time revenue. Further, we recognize, over time, revenue as per ASC 606-10-55-18 (invoice practical expedient) for our cost plus contracts and, accordingly, elect not to disclose information related to those performance obligations under ASC 606-10-50-14b. As of September 30, 2024, we had $10 million of performance obligations relating to firm fixed price contracts that did not qualify for the aforementioned disclosure exemptions. We expect to recognize 50% of these performance obligations by the end of 2024 and the remainder by the end of 2025. Rights of return generally are not included in customer contracts. Accordingly, product revenue is recognized upon transfer of control at shipment or delivery, as applicable. Rights of return are evaluated as they occur. Revenues recognized at a point in time consist of sales of semiconductor lasers, fiber lasers and other related products. Revenues recognized over time generally consist of development arrangements that are structured based on our costs incurred. For long-term contracts, we estimate the total expected costs to complete the contract and recognize revenue based on the percentage of costs incurred at period end. Typically, revenue is recognized over time using costs incurred to date relative to total estimated costs at completion to measure progress toward satisfying our performance obligations. Incurred costs represent work performed, which corresponds with, and thereby best depicts, the transfer of control to the customer. Contract costs include labor, materials, subcontractors costs, other direct costs, and indirect costs applicable on government and commercial contracts. Contract estimates are based on various assumptions to project the outcome of future events that may span several years. These assumptions include labor productivity and availability, the complexity of the work to be performed, the cost and availability of materials, the performance of subcontractors, and the availability and timing of funding from the customer. Billing under these arrangements generally occurs within one month of the costs being incurred or as milestones are reached. The following tables represent a disaggregation of revenue from contracts with customers for the periods presented (in thousands): Sales by End Market
Sales by Geography
Sales by Timing of Revenue
Our contract assets and liabilities were as follows (in thousands):
Contract assets generally consist of revenue recognized on an over-time basis where revenue recognition has been met, but the amounts are billed and collected in a subsequent period. In our services contracts, amounts are billed as work progresses in accordance with agreed-upon contractual terms, either at periodic intervals, which is generally monthly, or upon the achievement of contractual milestones. Generally, billing occurs subsequent to revenue recognition, resulting in contract assets recorded in prepaid expenses and other current assets on the Consolidated Balance Sheets. However, we sometimes receive advances or deposits from our customers before revenue is recognized, resulting in contract liabilities recorded in deferred revenues on the Consolidated Balance Sheets. Contract liabilities are not a significant financing component as they are generally utilized to pay for contract costs within a one-year period or are used to ensure the customer meets contractual requirements. These assets and liabilities are reported on the Consolidated Balance Sheets on a contract-by-contract basis at the end of each reporting period. For our product revenue, we generally receive cash payments subsequent to satisfying the performance obligation via delivery of the product, resulting in billed accounts receivable. For our contracts, there are no significant gaps between the receipt of payment and the transfer of the associated goods and services to the customer for material amounts of consideration. During the three and nine months ended September 30, 2024, we recognized revenue of $43 thousand and $4.3 million that was included in the deferred revenues balance at the beginning of the period as the performance obligations under the associated agreements were satisfied.
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Concentrations of Credit and Other Risks |
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Risks and Uncertainties [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Concentrations of Credit and Other Risks | Concentrations of Credit and Other Risks The following customers accounted for 10% or more of our revenues for the periods presented:
*Excludes sales to customers who sell our products and services exclusively to the U.S. Government (1) Represents less than 10% of total revenues. Financial instruments that potentially expose us to concentrations of credit risk consist principally of receivables from customers. As of September 30, 2024 and December 31, 2023, two customers accounted for a total of 22% and 24%, respectively, of net customer receivables. No other customers accounted for 10% or more of net customer receivables at either date.
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Marketable Securities |
9 Months Ended |
---|---|
Sep. 30, 2024 | |
Investments, All Other Investments [Abstract] | |
Marketable Securities | Marketable Securities Marketable securities consist primarily of highly liquid investments with original maturities of greater than 90 days when purchased. Our marketable securities are considered available-for-sale as they represent investments that are available to be sold for current operations. As such, they are included as current assets on our Consolidated Balance Sheets at fair value with unrealized gains and losses included in accumulated other comprehensive loss. Any unrealized gains and losses that are considered to be other-than-temporary are recorded in other income, net on our Consolidated Statements of Operations. Realized gains and losses on the sale of marketable securities are determined using the specific-identification method and recorded in other income, net on our Consolidated Statements of Operations. Realized gains were $1.1 million and $2.5 million for the three and nine months ended September 30, 2024, respectively. Unrealized losses were $0.2 million and immaterial for the three and nine months ended September 30, 2024, respectively. These unrealized gains are considered temporary and are reflected in the Consolidated Statements of Comprehensive Loss. Realized gains were $0.8 million and $1.7 million for the three and nine months ended September 30, 2023, respectively. Unrealized gains were immaterial for the three months ended September 30, 2023 and $0.3 million for the nine months ended September 30, 2023. See Note 5 for additional information.
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Fair Value of Financial Instruments |
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value of Financial Instruments | Fair Value of Financial Instruments The carrying amounts of certain of our financial instruments, including cash equivalents, accounts receivable, prepaid expenses and other current assets, accounts payable and accrued liabilities are shown at cost which approximates fair value due to the short-term nature of these instruments. The fair value of our term and revolving loans approximates the carrying value due to the variable market rate used to calculate interest payments. Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs. The standard describes a fair value hierarchy based on three levels of inputs, of which the first two are considered observable and the last unobservable, that may be used to measure fair value which are the following: •Level 1 Inputs: Observable inputs, such as quoted prices (unadjusted) in active markets for identical assets or liabilities at the measurement date. •Level 2 Inputs: Observable inputs, other than Level 1 prices, such as quoted prices in active markets for similar assets and liabilities, quoted prices in markets that are not active, 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 Inputs: Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. Our financial instruments that are carried at fair value consist of Level 1 assets which include highly liquid investments and bank drafts classified as cash equivalents and marketable securities. Our fair value hierarchy for our financial instruments was as follows (in thousands):
Cash Equivalents The fair value of cash equivalents is determined based on quoted market prices for similar or identical securities. Marketable Securities We classify our marketable securities as available-for-sale and value them utilizing a market approach that uses observable inputs without applying significant judgment.
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Inventory |
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Inventory Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventory | Inventory Inventory is stated at the lower of average cost (principally standard cost, which approximates actual cost on a first-in, first-out basis) and net realizable value. Inventory includes raw materials and components that may be specialized in nature and subject to obsolescence. On a quarterly basis, we review inventory quantities on hand in comparison to our past consumption, recent purchases, and other factors to determine what inventory quantities, if any, may not be sellable. Based on this analysis, we write down the affected inventory value for estimated excess and obsolescence charges. At the point of loss recognition, a new, lower-cost basis for that inventory is established, and subsequent changes in facts and circumstances do not result in the restoration or increase in that newly established cost basis. Inventory consisted of the following (in thousands):
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Property, Plant and Equipment |
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Property, Plant and Equipment [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property, Plant and Equipment | Property, Plant and Equipment Property, plant and equipment consisted of the following (in thousands):
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Intangible Assets and Goodwill |
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Goodwill and Intangible Assets Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Intangible Assets and Goodwill | Intangible Assets and Goodwill Intangible Assets The details of definite lived intangible assets were as follows (in thousands):
Amortization related to intangible assets was as follows (in thousands):
Estimated amortization expense for future years is as follows (in thousands):
Goodwill The carrying amount of goodwill by segment was as follows (in thousands):
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Accrued Liabilities |
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Payables and Accruals [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accrued Liabilities | Accrued Liabilities Accrued liabilities consisted of the following (in thousands):
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Product Warranties |
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Product Warranties | Product Warranties We provide warranties on certain products and record a liability for the estimated future costs associated with warranty claims at the time revenue is recognized. The warranty liability is based on historical experience, any specifically identified failures, and our estimate of future costs. The current portion of our product warranty liability is included in the accrued liabilities and the long-term portion is included in Other long-term liabilities in our Consolidated Balance Sheets. Product warranty liability activity was as follows for the periods presented (in thousands):
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Stockholders' Equity and Stock-Based Compensation |
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Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stockholders' Equity and Stock-Based Compensation | Stockholders' Equity and Stock-Based Compensation Restricted Stock Awards and Units Restricted stock unit ("RSU") and restricted stock awards ("RSA") activity under our equity incentive plan was as follows:
The total fair value of RSUs vested during the nine months ended September 30, 2024, was $15.0 million. Awards outstanding as of September 30, 2024 include 1.3 million performance-based awards that will vest upon meeting certain performance criteria. 0.5 million performance-based awards were granted during the nine months ended September 30, 2024. Stock Options The following table summarizes our stock option activity during the nine months ended September 30, 2024:
Total intrinsic value of options exercised for the nine months ended September 30, 2024 and 2023, was $2.7 million and $2.5 million, respectively. We received proceeds of $0.2 million and $0.4 million from the exercise of options for the nine months ended September 30, 2024 and 2023, respectively. Stock-Based Compensation Total stock-based compensation expense was included in our Consolidated Statements of Operations as follows (in thousands):
Unrecognized Compensation Costs As of September 30, 2024, total unrecognized stock-based compensation was $36.5 million, which will be recognized over an average expected recognition period of 2.0 years.
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Commitments and Contingencies |
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Sep. 30, 2024 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Leases See Note 13. Legal Matters On March 25, 2022, Lumentum Operations LLC (Lumentum) filed a complaint against nLIGHT, Inc. and certain of its employees in the U.S. District Court for the Western District of Washington. The complaint alleges that Lumentum is the partial or full owner of certain of our patents and requests corresponding relief from the court. We are vigorously defending against Lumentum’s allegations. Loss in this matter is not probable or reasonably estimable and, as such, no loss contingency has been recorded. From time to time, we may be subject to various other legal proceedings and claims in the ordinary course of business. As of September 30, 2024 we believe these matters will not have a material adverse effect on our consolidated financial statements.
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Leases |
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Leases | Leases We lease real estate space under non-cancelable operating lease agreements for commercial and industrial space. Facilities-related operating leases have remaining terms of 0.1 to 10.7 years, and some leases include options to extend up to 15 years. Other leases for automobiles, manufacturing and office and computer equipment have remaining lease terms of 0.1 to 4.1 years. These leases are primarily operating leases; financing leases are not material. We did not include any renewal options in our lease terms for calculating the lease liabilities as we are not reasonably certain we will exercise the options at this time. The weighted-average remaining lease term for the lease obligations was 7 years as of September 30, 2024, and the weighted-average discount rate was 4.0%. The components of lease expense related to operating leases were as follows (in thousands):
Future minimum payments under our non-cancelable lease obligations were as follows as of September 30, 2024 (in thousands):
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Segment Information |
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Sep. 30, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Information | Segment Information We operate in two reportable segments consisting of the Laser Products segment and the Advanced Development segment. The following table summarizes the operating results by reportable segment (dollars in thousands):
*Not meaningful Corporate and Other is unallocated expenses related to stock-based compensation. There have been no material changes to the geographic locations of our long-lived assets, net, based on the location of the assets, as disclosed in our Annual Report on Form 10-K for the year ended December 31, 2023.
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Net Loss per Share |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net Loss per Share | Net Loss per Share Basic and diluted net loss and the number of shares used for basic and diluted net loss calculations were the same for all periods presented because we were in a loss position. The following potentially dilutive securities were not included in the calculation of diluted shares as the effect would have been anti‑dilutive (in thousands):
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Subsequent Event |
9 Months Ended |
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Sep. 30, 2024 | |
Subsequent Events [Abstract] | |
Subsequent Event | Subsequent Event In October 2024, we gave notice to employees at our Shanghai manufacturing facility of a reduction in force. A severance charge of approximately $3.8 million will be recorded in the fourth quarter of 2024.
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Pay vs Performance Disclosure - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
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Sep. 30, 2024 |
Sep. 30, 2023 |
Sep. 30, 2024 |
Sep. 30, 2023 |
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Pay vs Performance Disclosure | ||||
Net Income (Loss) | $ (10,335) | $ (11,879) | $ (35,830) | $ (28,432) |
Insider Trading Arrangements |
3 Months Ended |
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Sep. 30, 2024 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Basis of Presentation and New Accounting Pronouncements (Policies) |
9 Months Ended |
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Sep. 30, 2024 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying unaudited consolidated financial statements of nLIGHT, Inc. and our wholly-owned subsidiaries have been prepared in accordance with accounting principles generally accepted in the United States of America (U.S. GAAP) and pursuant to the rules and regulations of the Securities and Exchange Commission (SEC). The unaudited financial information reflects, in the opinion of management, all adjustments necessary for a fair presentation of financial position, results of operations, stockholders’ equity, and cash flows for the interim periods presented. The results reported for the interim period presented are not necessarily indicative of results that may be expected for the full year. These consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2023.
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New Accounting Pronouncements | New Accounting Pronouncements ASU 2023-07 In November 2023, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2023-07, Improvements to Reportable Segment Disclosures. 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. We will adopt ASU 2023-07 in the fourth quarter of 2024 using a retrospective transition method. We are currently evaluating the impact of this guidance on our consolidated financial statements. ASU 2023-09 In December 2023, the FASB issued ASU 2023-09, Improvements to Income Tax Disclosures. This ASU requires enhanced jurisdictional and other disaggregated disclosures for the effective tax rate reconciliation and income taxes paid and is effective for fiscal years beginning after December 15, 2024. This ASU requires additional disclosures and, accordingly, we do not expect the adoption of ASU 2023-09 to have a material effect on our financial position, results of operations or cash flows.
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Inventory | Inventory is stated at the lower of average cost (principally standard cost, which approximates actual cost on a first-in, first-out basis) and net realizable value. Inventory includes raw materials and components that may be specialized in nature and subject to obsolescence. On a quarterly basis, we review inventory quantities on hand in comparison to our past consumption, recent purchases, and other factors to determine what inventory quantities, if any, may not be sellable. Based on this analysis, we write down the affected inventory value for estimated excess and obsolescence charges. At the point of loss recognition, a new, lower-cost basis for that inventory is established, and subsequent changes in facts and circumstances do not result in the restoration or increase in that newly established cost basis. |
Product Warranties | We provide warranties on certain products and record a liability for the estimated future costs associated with warranty claims at the time revenue is recognized. The warranty liability is based on historical experience, any specifically identified failures, and our estimate of future costs. The current portion of our product warranty liability is included in the accrued liabilities and the long-term portion is included in Other long-term liabilities in our Consolidated Balance Sheets.
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Revenue (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue from Contract with Customer [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Sales by End Market | The following tables represent a disaggregation of revenue from contracts with customers for the periods presented (in thousands): Sales by End Market
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Schedule of Sales by Geography | Sales by Geography
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Schedule of Sales by Timing of Revenue | Sales by Timing of Revenue
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Schedule of Contract Assets and Liabilities | Our contract assets and liabilities were as follows (in thousands):
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Concentrations of Credit and Other Risks (Tables) |
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Sep. 30, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Risks and Uncertainties [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Concentration of Credit | The following customers accounted for 10% or more of our revenues for the periods presented:
*Excludes sales to customers who sell our products and services exclusively to the U.S. Government (1) Represents less than 10% of total revenues.
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Fair Value of Financial Instruments (Tables) |
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Sep. 30, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Fair Value Hierarchy for Its Cash Equivalents | Our fair value hierarchy for our financial instruments was as follows (in thousands):
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Inventory (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventory Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Components of Inventory | Inventory consisted of the following (in thousands):
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Property, Plant and Equipment (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property, Plant and Equipment [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Property, Plant and Equipment | Property, plant and equipment consisted of the following (in thousands):
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Intangible Assets and Goodwill (Tables) |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2024 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Intangible Assets | The details of definite lived intangible assets were as follows (in thousands):
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Schedule of Finite-lived Intangible Assets Amortization Expense | Amortization related to intangible assets was as follows (in thousands):
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Schedule of Estimated Future Amortization Expense | Estimated amortization expense for future years is as follows (in thousands):
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Schedule of Goodwill | The carrying amount of goodwill by segment was as follows (in thousands):
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Accrued Liabilities (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Payables and Accruals [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Accrued Liabilities | Accrued liabilities consisted of the following (in thousands):
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Product Warranties (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Guarantees and Product Warranties [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Reconciliation of the Changes in the Aggregate Product Warranty Liability | Product warranty liability activity was as follows for the periods presented (in thousands):
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Stockholders' Equity and Stock-Based Compensation (Tables) |
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Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Restricted Stock Awards and Units | Restricted stock unit ("RSU") and restricted stock awards ("RSA") activity under our equity incentive plan was as follows:
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||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Stock Option Activity | The following table summarizes our stock option activity during the nine months ended September 30, 2024:
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Schedule of Stock-based Compensation Expense | Total stock-based compensation expense was included in our Consolidated Statements of Operations as follows (in thousands):
|
Leases (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Leases [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Components of Lease Expense | The components of lease expense related to operating leases were as follows (in thousands):
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Future Minimum Payments Under Non-cancelable Lease Obligations | Future minimum payments under our non-cancelable lease obligations were as follows as of September 30, 2024 (in thousands):
|
Segment Information (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Operating Results by Reportable Segment | The following table summarizes the operating results by reportable segment (dollars in thousands):
|
Net Loss per Share (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Potentially Dilutive Shares Not Included in Calculation of Diluted Shares | The following potentially dilutive securities were not included in the calculation of diluted shares as the effect would have been anti‑dilutive (in thousands):
|
Revenue - Narrative (Details) $ in Thousands |
3 Months Ended | 9 Months Ended |
---|---|---|
Sep. 30, 2024
USD ($)
|
Sep. 30, 2024
USD ($)
|
|
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Performance obligation | $ 10,000 | $ 10,000 |
Revenue recognized, previously included in customer advances and deferred revenue | $ 43 | $ 4,300 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-10-01 | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Performance obligation, percentage | 50.00% | 50.00% |
Performance obligation, scheduled delivery, period | 3 months | 3 months |
Revenue - Contract Assets and Liabilities (Details) - USD ($) $ in Thousands |
Sep. 30, 2024 |
Dec. 31, 2023 |
---|---|---|
Revenue from Contract with Customer [Abstract] | ||
Contract assets | $ 8,802 | $ 7,298 |
Contract liabilities | $ 5,769 | $ 6,368 |
Concentrations of Credit and Other Risks (Details) - Customer Concentration Risk |
3 Months Ended | 9 Months Ended | 12 Months Ended | ||
---|---|---|---|---|---|
Sep. 30, 2024 |
Sep. 30, 2023 |
Sep. 30, 2024 |
Sep. 30, 2023 |
Dec. 31, 2023 |
|
Sales Revenue | U.S. Government | |||||
Concentration Risk [Line Items] | |||||
Concentration risk (as a percent) | 12.00% | 16.00% | 15.00% | 17.00% | |
Sales Revenue | Raytheon Technologies | |||||
Concentration Risk [Line Items] | |||||
Concentration risk (as a percent) | 10.00% | ||||
Sales Revenue | KORD Technologies | |||||
Concentration Risk [Line Items] | |||||
Concentration risk (as a percent) | 19.00% | 14.00% | |||
Accounts Receivable | Two customers | |||||
Concentration Risk [Line Items] | |||||
Concentration risk (as a percent) | 22.00% | 24.00% |
Marketable Securities (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2024 |
Sep. 30, 2023 |
Sep. 30, 2024 |
Sep. 30, 2023 |
|
Investments, All Other Investments [Abstract] | ||||
Realized gains on available-for-sale securities | $ 1,100 | $ 800 | $ 2,500 | $ 1,700 |
Unrealized gains (losses) on available-for-sale securities | $ (216) | $ 21 | $ 42 | $ 339 |
Inventory (Details) - USD ($) $ in Thousands |
Sep. 30, 2024 |
Dec. 31, 2023 |
---|---|---|
Inventory Disclosure [Abstract] | ||
Raw materials | $ 20,278 | $ 23,426 |
Work in process and semi-finished goods | 22,113 | 19,640 |
Finished goods | 6,437 | 9,094 |
Inventory | $ 48,828 | $ 52,160 |
Intangible Assets and Goodwill - Amortization of Intangible Assets (Details) - USD ($) $ in Thousands |
Sep. 30, 2024 |
Dec. 31, 2023 |
---|---|---|
Goodwill and Intangible Assets Disclosure [Abstract] | ||
2024 | $ 149 | |
2025 | 484 | |
2026 | 348 | |
Thereafter | 0 | |
Net value | $ 981 | $ 1,652 |
Intangible Assets and Goodwill - Goodwill (Details) $ in Thousands |
9 Months Ended |
---|---|
Sep. 30, 2024
USD ($)
| |
Goodwill [Roll Forward] | |
Beginning balance | $ 12,399 |
Currency exchange rate adjustment | 9 |
Ending balance | 12,408 |
Laser Products | |
Goodwill [Roll Forward] | |
Beginning balance | 2,151 |
Currency exchange rate adjustment | 9 |
Ending balance | 2,160 |
Advanced Development | |
Goodwill [Roll Forward] | |
Beginning balance | 10,248 |
Currency exchange rate adjustment | 0 |
Ending balance | $ 10,248 |
Accrued Liabilities (Details) - USD ($) $ in Thousands |
Sep. 30, 2024 |
Dec. 31, 2023 |
---|---|---|
Payables and Accruals [Abstract] | ||
Accrued payroll and benefits | $ 10,497 | $ 7,898 |
Product warranty, current | 2,440 | 3,339 |
Other accrued expenses | 1,204 | 1,319 |
Total accrued liabilities | $ 14,141 | $ 12,556 |
Product Warranties (Details) - USD ($) $ in Thousands |
9 Months Ended | |
---|---|---|
Sep. 30, 2024 |
Sep. 30, 2023 |
|
Movement in Standard Product Warranty Accrual [Roll Forward] | ||
Product warranty liability, beginning | $ 4,469 | $ 5,441 |
Warranty charges incurred, net | (3,492) | (2,805) |
Provision for warranty charges, net of adjustments | 2,597 | 2,267 |
Product warranty liability, ending | 3,574 | 4,903 |
Less: current portion of product warranty liability | (2,440) | (3,694) |
Non-current portion of product warranty liability | $ 1,134 | $ 1,209 |
Stockholders' Equity and Stock-Based Compensation - Narrative (Details) - USD ($) shares in Thousands, $ in Thousands |
9 Months Ended | ||
---|---|---|---|
Sep. 30, 2024 |
Sep. 30, 2023 |
Dec. 31, 2023 |
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Intrinsic value of options exercised | $ 2,700 | $ 2,500 | |
Proceeds from stock option exercises | 221 | $ 385 | |
Unrecognized expense | $ 36,500 | ||
Period for recognition (in years) | 2 years | ||
Restricted Stock Units (RSUs) | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vested, fair value | $ 15,000 | ||
Awards outstanding (in shares) | 3,529 | 2,817 | |
Granted (in shares) | 1,787 | ||
Performance-based Awards | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Awards outstanding (in shares) | 1,300 | ||
Granted (in shares) | 500 |
Stockholders' Equity and Stock-Based Compensation - Stock-based Compensation Expense (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2024 |
Sep. 30, 2023 |
Sep. 30, 2024 |
Sep. 30, 2023 |
|
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Stock-based compensation expense | $ 6,527 | $ 6,627 | $ 18,961 | $ 19,645 |
Cost of revenues | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Stock-based compensation expense | 629 | 508 | 1,829 | 1,871 |
Research and development | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Stock-based compensation expense | 2,046 | 2,613 | 5,834 | 7,537 |
Sales, general and administrative | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Stock-based compensation expense | $ 3,852 | $ 3,506 | $ 11,298 | $ 10,237 |
Leases - Components of Lease Expense (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2024 |
Sep. 30, 2023 |
Sep. 30, 2024 |
Sep. 30, 2023 |
|
Leases [Abstract] | ||||
Operating lease expense | $ 943 | $ 948 | $ 2,773 | $ 2,763 |
Short-term lease expense | 139 | 142 | 265 | 348 |
Variable and other lease expense | 273 | 271 | 793 | 744 |
Lease expense | $ 1,355 | $ 1,361 | $ 3,831 | $ 3,855 |
Leases - Future Minimum Payments Under Non-Cancelable Operating Leases (Details) - USD ($) $ in Thousands |
Sep. 30, 2024 |
Dec. 31, 2023 |
---|---|---|
Leases [Abstract] | ||
2024 | $ 959 | |
2025 | 2,669 | |
2026 | 1,971 | |
2027 | 1,886 | |
2028 | 1,617 | |
Thereafter | 5,445 | |
Total minimum lease payments | 14,547 | |
Less: interest | (1,914) | |
Present value of net minimum lease payments | 12,633 | |
Less: current portion of lease liabilities | (2,616) | $ (3,181) |
Total long-term lease liabilities | $ 10,017 | $ 10,978 |
Segment Information - Narrative (Details) |
9 Months Ended |
---|---|
Sep. 30, 2024
segment
| |
Segment Reporting [Abstract] | |
Number of reportable segments | 2 |
Segment Information - Operating Results (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2024 |
Sep. 30, 2023 |
Sep. 30, 2024 |
Sep. 30, 2023 |
|
Segment Reporting Information [Line Items] | ||||
Revenue | $ 56,129 | $ 50,634 | $ 151,167 | $ 158,029 |
Gross profit | $ 12,550 | $ 9,938 | $ 31,888 | $ 36,309 |
Gross margin | 22.40% | 19.60% | 21.10% | 23.00% |
Operating Segments | Laser Products | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | $ 41,132 | $ 38,103 | $ 104,960 | $ 118,802 |
Gross profit | $ 12,475 | $ 9,596 | $ 30,261 | $ 35,860 |
Gross margin | 30.30% | 25.20% | 28.80% | 30.20% |
Operating Segments | Advanced Development | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | $ 14,997 | $ 12,531 | $ 46,207 | $ 39,227 |
Gross profit | $ 704 | $ 850 | $ 3,456 | $ 2,320 |
Gross margin | 4.70% | 6.80% | 7.50% | 5.90% |
Corporate and Other | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | $ 0 | $ 0 | $ 0 | $ 0 |
Gross profit | $ (629) | $ (508) | $ (1,829) | $ (1,871) |
Net Loss per Share (Details) - shares shares in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2024 |
Sep. 30, 2023 |
Sep. 30, 2024 |
Sep. 30, 2023 |
|
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive securities (in shares) | 1,797 | 2,331 | 2,124 | 2,427 |
Restricted stock units and awards | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive securities (in shares) | 715 | 918 | 947 | 942 |
Common stock options | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive securities (in shares) | 1,082 | 1,413 | 1,177 | 1,485 |
Subsequent Event (Details) $ in Millions |
3 Months Ended |
---|---|
Dec. 31, 2024
USD ($)
| |
Forecast | |
SubsequentEventTable [Line Items] | |
Severance charge | $ 3.8 |
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