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BALANCE SHEET DETAILS
 9 Months Ended
Sep. 30, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
BALANCE SHEET DETAILS BALANCE SHEET DETAILS
Inventory
Inventory consisted of the following (in thousands):
September 30, 2023December 31, 2022
Raw materials and work-in-process$5,962 $9,338 
Finished goods7,686 5,817 
Total$13,648 $15,155 

Other Assets
Other assets consisted of the following (in thousands):
September 30, 2023December 31, 2022
PCBAs$37,980 $18,599 
Cloud computing arrangements5,223 2,523 
Strategic investment3,000 — 
Other845 1,130 
Total$47,048 $22,252 
The Company reuses PCBAs in each wearable Zio XT patch, Zio AT patch, and Zio Monitor patch, as well as the wireless gateway used in conjunction with the Zio AT patch. As PCBAs are used in a wearable Zio XT patch, Zio AT patch, or Zio Monitor patch, a portion of the cost of the PCBA is recorded as a cost of revenue. The PCBAs are charged over a period beyond one year. Charges to cost of revenue were $2.4 million and $5.4 million for the three and nine months ended September 30, 2023, respectively, and $1.3 million and $3.8 million for the three and nine months ended September 30, 2022, respectively.
During the nine months ended September 30, 2023, PCBAs increased by $19.4 million primarily related to the expanded launch of the Zio Monitor System, as well as additional needs for the Zio XT and Zio AT patches.
Property and Equipment, Net
Property and equipment, net consisted of the following (in thousands):
September 30, 2023December 31, 2022
Laboratory and manufacturing equipment$5,729 $4,911 
Computer equipment and software2,448 2,315 
Furniture and fixtures4,198 4,119 
Leasehold improvements23,533 23,144 
Internal-use software60,001 44,877 
Internal-use software in development37,482 28,069 
Construction in progress9,655 3,451 
Total property and equipment, gross143,046 110,886 
Less: accumulated depreciation and amortization(46,378)(35,216)
Total property and equipment, net$96,668 $75,670 
Depreciation and amortization expense was $4.1 million and $11.4 million for the three and nine months ended September 30, 2023, respectively, and $3.4 million and $9.9 million for the three and nine September 30, 2022, respectively, of which amortization related to internal-use software, was $3.1 million and $8.6 million, for the three and nine months ended September 30, 2023, respectively, and $2.5 million and $7.2 million for the three and nine months ended September 30, 2022, respectively.
During the three and nine months ended September 30, 2023, internal-use software, both in service and in development, increased by $7.8 million and $24.5 million, respectively. This increase related to enhancements in the Company’s core technology, products and services and artificial intelligence, as well as investment in future technology, such as the Zio Monitor System, the Company's new biosensor technology platform, and the clinically-integrated ZEUS System for the Zio Watch.
Accrued Liabilities
Accrued liabilities consisted of the following (in thousands):
September 30, 2023December 31, 2022
Accrued payroll and related expenses$38,458 $34,752 
Accrued vacation10,050 8,608 
Accrued expenses13,811 7,006 
Claims payable5,295 4,464 
Accrued employee share purchase plan contributions2,863 1,045 
Accrued income and sales taxes3,071 2,388 
Accrued professional services fees3,083 7,234 
Total accrued liabilities$76,631 $65,497 
During the year ended December 31, 2022 and the nine months ended September 30, 2023, the Company has incurred expenses in connection with efforts to further globalize its operational footprint and expects to continue to incur such expenses through mid-2024. Included above in accrued payroll and related expenses as of September 30, 2023, were $4.0 million of costs related to globalization.