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BALANCE SHEET DETAILS
 9 Months Ended
Sep. 30, 2025
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
BALANCE SHEET DETAILS
4. BALANCE SHEET DETAILS
Inventories
Inventories consisted of the following (in thousands):
As of September 30,
2025		As of December 31,
2024
Raw materials$2,814 $1,677 
Work-in-process17 9 
Total inventories$2,831 $1,686 
Prepaid expenses and other current assets
Prepaid expenses and other current assets consisted of the following (in thousands):
As of September 30,
2025		As of December 31,
2024
Prepaid services$1,423 $977 
Interest receivable2,496 — 
Prepaid software1,335 845 
Prepaid insurance375 382 
Prepaid rent150 156 
Other1,372 1,594 
Total prepaid expenses and other current assets$7,150 $3,954 
Other non-current assets, net
Other non-current assets, net consisted of the following (in thousands):
As of September 30,
2025		As of December 31,
2024
Investment in equity securities$3,400 $2,574 
Deferred financing costs749 — 
Long-term deposits242 181 
Contract acquisition costs, net163 174 
Total $4,554 $2,929 
Equity securities
On January 5, 2024, an entity the Company had invested in was acquired by another entity and the transaction was determined to result in an observable price change in the equity security. Consequently, the carrying value of the Company's investment was adjusted based on the consideration received, resulting in a net gain of approximately $1.7 million, recorded in gain on investment in marketable securities on the condensed consolidated statements of operations and comprehensive loss during the nine months ended September 30, 2024.
During the three months ended September 30, 2025, an earnout provision was triggered that resulted in the Company receiving additional cash and stock consideration for its interest in the acquired former investee. The Company recognized a gain of $0.9 million in gain on investment in marketable securities on the condensed consolidated statements of operations and comprehensive loss.
Zapata Note
On February 8, 2024, the Company entered into a collaboration arrangement with Zapata to develop and bring to market commercial applications that combine generative AI and quantum computing technologies. As part of the collaboration, the Company purchased the Note with a principal amount of $1.0 million from Zapata. The Note matures on December 15, 2026, and bears interest at 15% per annum. The Note is prepayable without penalty after December 15, 2025 or if the aggregate value of Zapata's convertible notes outstanding falls below $3.0 million. The Note was convertible into Zapata common stock at the Company's option at a conversion price of $8.50, subject to adjustment for stock splits, recapitalizations, and other similar corporate transactions.
On April 1, 2024 the conversion feature associated with the Note was bifurcated from the debt host instrument in connection with the underlying stock becoming readily convertible to cash as the result of a de-SPAC transaction. As a result, the fair value of the conversion feature of $0.2 million was given separate recognition. During the nine months ended September 30, 2024, the fair value of the conversion feature was immaterial, resulting in a loss of $0.2 million recorded to gain on investment in marketable securities on the condensed consolidated statements of operations and comprehensive loss.
On October 11, 2024, Zapata announced that it was insolvent and would cease operations. Considering this and other financial information available prior to the balance sheet date as of December 31, 2024, the Note was provisionally determined to be uncollectible, and the Company has recognized a credit loss provision for the entire balance owed of $1.0 million during the year ended December 31, 2024. The charge was recorded within general and administrative expenses in the condensed consolidated statements of operations and comprehensive loss.
The Company was one of two senior-most secured creditors to Zapata. The Note was secured by substantially all of Zapata's assets, including cash accounts, accounts receivables, inventory, contract rights and general intangibles, intellectual property, and equipment, as set forth in the security agreements pertaining to the Note.
Subsequent to the write-off of the Note, in June 2025, the Company recovered the full principal balance of the Note, along with $0.2 million in interest and $0.1 million in legal fees. The recovery was recorded within general and administrative expenses in the condensed consolidated statements of operations and comprehensive loss, offsetting the previously recorded credit loss provision and legal expenses. The cash received for the principal balance of the Note is presented within investing activities in the statement of cash flows. The interest was recorded within Other income, net in the condensed consolidated statements of operations and comprehensive loss.
Deferred financing costs
The deferred financing costs are deferred issuance costs related to the Equipment Financing Agreement. See Note 6 - Loans payable, net for additional information.
Accrued expenses and other current liabilities
Accrued expenses and other current liabilities consisted of the following (in thousands):
As of September 30,
2025		As of December 31,
2024
Accrued compensation and related benefits$6,166 $5,499 
Accrued professional services883 529 
Other accruals2,447 2,756 
Total accrued expenses and other current liabilities$9,496 $8,784