FINANCIAL STATEMENT COMPONENTS

9 Months Ended

Sep. 30, 2023

Organization, Consolidation and Presentation of Financial Statements [Abstract]

FINANCIAL STATEMENT COMPONENTS

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:

	September 30,		December 31,
(in thousands)	2023		2022
Raw materials	$	1,562	$	1,556
Work in process		305		305
Finished goods		1,749		-
	$	3,616	$	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:

	September 30,			December 31,
(in thousands)	2023			2022
Production equipment	$	6,140		$	6,140
Leasehold improvements		3,843			3,789
Computer hardware and software/lab equipment		12,110			10,515
Office furniture and equipment		5,196			1,804
		27,289			22,248
Less: Accumulated depreciation		(17,828	)		(15,418	)
	$	9,461		$	6,830

Depreciation expense was $1.1 million and $153,000 for the three months ended September 30, 2023 and 2022, respectively. Depreciation expense was $2.8 million and $533,000 for the nine months ended September 30, 2023 and 2022, respectively.

Intangible assets

The components of intangible assets were as follows:

As of September 30, 2023	Gross				Net		Weighted
	Carrying		Accumulated		Carrying		Average Remaining
(in thousands)	Amount		Amortization		Amount		Period (Years)
Acquired technology	$	20,172	$	2,415	$	17,757		12
Backlog		26		17		9		-
	$	20,198	$	2,432	$	17,766

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 $573,000 and $10,000 for the three months ended September 30, 2023 and 2022, respectively. Amortization expense was $1.6 million and $30,000 for the nine months ended September 30, 2023 and 2022, respectively.

The following table outlines our estimated future amortization expense related to intangible assets held at September 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	$	387	$	179	$	566
2024		1,548		556		2,104
2025		1,548		52		1,600
2026		1,548		24		1,572
Thereafter		11,924		-		11,924
	$	16,955	$	811	$	17,766