Balance Sheet Components

12 Months Ended

Dec. 31, 2023

Balance Sheet Components

Balance Sheet Components

4. Balance Sheet Components

Inventory

Inventory consisted of the following (in thousands):

	December 31,		December 31,
	2023		2022
Raw materials	$	189	$	666
Work-in-process		6,724		4,746
Finished goods		1,478		1,271
Total inventory	$	8,391	$	6,683

Property and Equipment, Net

Property and equipment, net consisted of the following (in thousands):

	December 31,		December 31,
	2023		2022
Manufacturing equipment	$	13,494	$	16,130
Computer and network equipment		520		1,124
Furniture and fixtures		113		187
Software		825		929
Leasehold improvements		1,476		1,444
Total property and equipment, gross		16,428		19,814
Less: accumulated depreciation		(12,711)		(15,931)
Total property and equipment, net	$	3,717	$	3,883

Depreciation and amortization expense during the years ended December 31, 2023 and 2022 was $1.2 million and $1.0 million, respectively.

Accrued Liabilities

Accrued liabilities consisted of the following (in thousands):

	December 31,		December 31,
	2023		2022
Payroll-related expenses	$	3,347	$	2,886
Inventory		317		185
Other		672		462
Total accrued liabilities	$	4,336	$	3,533

Deferred Revenue

During the year ended December 31, 2022, the Company executed contractual arrangements with a customer for the development of a RAD-Hard product, consisting of a technology license, design license agreement and development subcontract (RAD-Hard 1). The Company does not share in the rights to future revenues or royalties. The total arrangements are for $6.5 million in consideration.

The Company concluded these contractual arrangements represent one arrangement and evaluated its promises to the customer and whether the performance obligations granted under the arrangement were distinct. The licenses provided to the customer are not transferable, are of limited value without the promised development services, and the customer cannot benefit from the license agreements without the specific obligated services in the development subcontract, as there is strong interdependency between the licenses and the development subcontract. Accordingly, the Company determined the licenses were not distinct within the context of the contract and combined the license with other performance obligations. The total transaction price of $6.5 million was allocated to the single performance obligation.

The Company recognizes revenue related to the performance obligations over time using the input method based on costs incurred to date relative to the total expected costs of the contract and began recognizing revenue in the second quarter of 2021 over the contract period. This method depicts performance under the contract and requires the Company to make estimates about the future costs expected to be incurred to perform under the contact, including labor and material costs.

As of December 31, 2023, the Company has billed $6.0 million for the performance under the RAD-Hard 1 contractual agreements. Under the input method of recognition, the Company has recognized $0.7 million in revenue for the year ending December 31, 2023, and $5.7 million in revenue since inception of the contractual agreements. As a result, the Company has recorded $0.3 million in deferred revenue as of December 31, 2023. The Company expects to recognize the remaining $0.8 million of the transaction price as services are performed throughout the contractual period and performance is expected to be complete in the year ended December 31, 2024.

As of December 31, 2022, the Company had recorded $0.8 million in deferred revenue, of which $0.7 million was recognized as revenue during the year ending December 31, 2023.