7. FINANCIAL STATEMENT COMPONENTS

3 Months Ended

Mar. 31, 2023

Financial Statement Components [Abstract]

. FINANCIAL STATEMENT COMPONENTS

The following financial statement components changed significantly as a result of our January 2023 acquisition of assets from Ibeo.

Inventory

Inventory consists of the following:


(in thousands)	March 31, 2023		December 31, 2022
Raw materials	$	1,627	$	1,556
Work in process		305		—
Finished goods		1,184		305

	$	3,116	$	1,861

Inventory is computed using the

first-in,

first-out

(FIFO) method and is stated at the lower of cost and net realizable value. Management periodically assesses the need to account for obsolescence of inventory and adjusts the carrying value of inventory to its net realizable value when required.

Property and equipment

Property and equipment consists of the following:


(in thousands)	March 31, 2023			December 31, 2022
Production equipment	$	6,140		$	6,140
Leasehold improvements		3,960			3,789
Computer hardware and software/lab equipment		11,481			10,515
Office furniture and equipment		5,370			1,804

		26,951			22,248
Less: Accumulated depreciation		(16,667	)		(15,418	)

	$	10,284		$	6,830

Depreciation expense was $1.3 million and $229,000 for the three months ended March 31, 2023 and 2022, respectively.

Intangible assets

The components of intangible assets were as follows:


As of March 31, 2023
(in thousands)	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount		Weighted Average Remaining Period (Years)
Acquired technology	$	19,997	$	1,120	$	18,877		13
Backlog		26		—		26		1

	$	20,023	$	1,120		18,903


As of December 31, 2022
(in thousands)	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount		Weighted Average Remaining Period (Years)
Acquired technology	$	951	$	876	$	75		4

	$	951	$	876		75

Amortization expense was $401,000 and $10,000 during the three months ended March 31, 2023 and 2022, respectively.

The following table outlines our estimated future amortization expense related to intangible assets held at March 31, 2023 by line item on the statement of operations (in thousands):


Years Ended December 31,	Cost of Revenue		Research and Development Expense		Total
2023	$	1,301	$	24	$	1,325
2024		1,541		22		1,563
2025		1,541		14		1,555
2026		1,541		7		1,548
Thereafter		8,541		—		8,541

		14,465		67		14,532