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7. FINANCIAL STATEMENT COMPONENTS

6 Months Ended

Jun. 30, 2023

Financial Statement Components [Abstract]

7. 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)	June 30, 2023		December 31, 2022
Raw materials	$	1,499	$	1,556
Work in process		305		—
Finished goods		1,129		305

	$	2,933	$	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)	June 30, 2023			December 31, 2022
Production equipment	$	6,140		$	6,140
Leasehold improvements		3,843			3,789
Computer hardware and software/lab equipment		11,916			10,515
Office furniture and equipment		5,196			1,804

		27,095			22,248
Less: Accumulated depreciation		(17,146	)		(15,418	)

	$	9,949		$	6,830

Depreciation expense was $479,000 and $151,000 for the three months ended June 30, 2023 and 2022, respectively. Depreciation expense was $1.7

million and $

380,000 for the six months ended June 30, 2023 and 2022, respectively.

Intangible assets

The components of intangible assets were as follows:


As of June 30, 2023	Gross				Net		Weighted
	Carrying		Accumulated		Carrying		Average Remaining
(in thousands)	Amount		Amortization		Amount		Period (Years)
Acquired technology	$	19,997	$	1,676	$	18,321		13
Backlog		26		—		26		1

	$	20,023	$	1,676		18,347


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

	$	951	$	876	$	75

Amortization expense was $564,000 and $10,000 for the three months ended June 30, 2023 and 2022, respectively. Amortization expense was $906,000 and $20,000 for the six months ended June 30, 2023 and 2022, respectively.

The following table outlines our estimated future amortization expense related to intangible assets held at June 30, 2023 by line item on the statement of operations (in thousands):


			Research and
	Cost of		Development
Years Ended December 31,	Revenue		Expense		Total
2023	$	1,694	$	16	$	1,710
2024		1,548		22		1,570
2025		1,548		14		1,562
2026		1,548		7		1,555
Thereafter		11,924		—		11,924

	$	18,262	$	59	$	18,321