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FINANCIAL STATEMENT COMPONENTS
 12 Months Ended
Dec. 31, 2024
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
FINANCIAL STATEMENT COMPONENTS

8. FINANCIAL STATEMENT COMPONENTS

 

Restricted Cash

 

During the year ended December 31, 2024, Restricted cash, current decreased largely due to a $3.3 million release of escrow in connection with the Asset Purchase Agreement with Ibeo. In addition, Restricted cash, net of current portion increased by approximately $1.0 million related to cash that is held as collateral for a Hamburg, Germany lease.

 

 

Inventory

 

Inventory consists of the following (in thousands):

  

   2024   2023 
   December 31, 
   2024   2023 
Raw materials  $1,616   $1,574 
Work in process   -    305 
Finished goods   678    1,995 
Total inventory   $2,294   $3,874 

 

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.

 

During the year ended December 31, 2024, the Company recorded a $2.0 million reduction to inventory due to obsolescence.

 

Property and Equipment

 

Property and equipment consists of the following (in thousands):

  

   2024   2023 
   December 31, 
   2024   2023 
Production equipment  $6,140   $6,140 
Leasehold improvements   3,957    3,843 
Computer hardware and software/lab equipment   12,211    12,149 
Office furniture and equipment   4,973    5,367 
Property and equipment, gross    27,281    27,499 
Less: Accumulated depreciation   (20,220)   (18,467)
Property and equipment, net   $7,061   $9,032 

 

Depreciation expense was $2.1 million, $3.1 million, and $0.7 million for the years ended December 31, 2024, 2023 and 2022 respectively.

 

Intangible Assets

 

The components of intangible assets are as follows:

 

As of December 31, 2024  Gross           Net   Weighted Average Remaining 
   Carrying   Accumulated   Impairment   Carrying   Period 
(in thousands)  Amount   Amortization   Expense   Amount   (Years) 
Acquired technology  $20,172    5,019   $4,181   $10,972    13 
Backlog   -    -    -    -    - 
   $20,172   $5,019   $4,181   $10,972      

 

As of December 31, 2023  Gross           Net   Weighted Average Remaining 
   Carrying   Accumulated   Impairment   Carrying  Period 
(in thousands)  Amount   Amortization   Expense   Amount   (Years) 
Acquired technology  $20,172   $2,940   $-   $17,232    12 
Backlog   26    23    -    3    - 
   $20,198   $2,963   $-   $17,235      

 

Amortization expense was $2.1 million, $2.1 million, and $0.0 million for the years ended December 31, 2024, 2023 and 2022, respectively.

 

During the quarter ended June 30, 2024, management identified various factors related to the 2024 restructuring events (see Note 14. Restructuring Charges) that collectively indicated that it is more-likely-than-not that the fair value of the Company’s Reference software intangible asset was less than its carrying amount as of June 30, 2024. As of June 30, 2024, prior to impairment, the fair value was $4.5 million. As a result, the Company performed an impairment assessment for intangibles in accordance with ASC 360, Property, Plant and Equipment. The June 30, 2024 impairment test indicated a decline in the carrying amount of the Reference software intangible asset and a reduction in the asset’s useful life, resulting in a non-cash impairment charge of $3.0 million.

 

As part of the Company’s annual impairment assessment, management identified further factors that indicated the Company’s Reference software intangible asset is more-likely-than-not fully impaired. As of December 31, 2024, prior to impairment, the fair value was $1.2 million. An additional non-cash impairment charge of $1.2 million was recorded, resulting in a combined non-cash impairment charge of $4.2 million that is included in impairment loss on intangible assets on the consolidated statement of operations. As of December 31, 2024, the fair value of Reference software is fully written off.

 

 

The following table outlines estimated future amortization expense related to intangible assets held as of December 31, 2024 (in thousands):

  

       Research and     
   Cost of   Development     
Years Ended December 31,  Revenue   Expense   Total 
2025  $869            54   $923 
2026   869    27    896 
2027   829    1    830 
2028   825    -    825 
2029   825    -    825 
Thereafter   6,673    -    6,673 
Total  $10,890   $82   $10,972 

 

Accrued Liabilities

 

Accrued liabilities consists of the following (in thousands):

 

   2024   2023 
   December 31, 
   2024   2023 
Bonuses  $571   $1,359 
Payroll and payroll taxes   1,127    3,704 
Income taxes payable   20    2,111 
Accrued professional fees   140    236 
Liabilities to suppliers   381    885 
Other   303    345 
Total accrued liabilities  $2,542   $8,640 

 

In addition, as of December 31, 2023, the accrued liability for Ibeo business combination on the consolidated balance sheet in the amount of $6.3 million included $3.3 million that was withheld from the Purchase Price and held in escrow for a maximum period of 13 months post-Closing as partial security for potential claims arising out of or in connection with the Asset Purchase Agreement and a $3.0 million holdback. Both were settled during the year ended December 31, 2024.