Balance Sheet Details

12 Months Ended

Dec. 31, 2022

Balance Sheet Related Disclosures [Abstract]

Accounts receivable, net consisted of the following (in thousands):


	December 31,
	2022		2021
Accounts receivable	$	94,201	$	85,944
Allowance for doubtful accounts	(397)		(725)
	$	93,804	$	85,219

The table below summarizes the changes in allowance for doubtful accounts and product return liability for the periods indicated (in thousands):


	Balance at Beginning of Year		Additions Charged to Expenses or Revenue Net of Recoveries		Write Offs and Returns		Balance at End of Year
Year Ended December 31, 2022:
Allowance for doubtful accounts	$	725	$	(276)	$	(52)	$	397
Product return liability	1,836		5,622		(4,497)		2,961
Year Ended December 31, 2021:
Allowance for doubtful accounts	$	1,405	$	(201)	$	(479)	$	725
Product return liability	1,888		3,681		(3,733)		1,836
Year Ended December 31, 2020:
Allowance for doubtful accounts	$	374	$	1,085	$	(54)	$	1,405
Product return liability	919		3,391		(2,422)		1,888

Inventory consisted of the following (in thousands):


	December 31,
	2022		2021
Raw materials	$	640	$	130
Finished goods	148,520		88,750
	$	149,160	$	88,880

Prepaid expenses and other current assets consisted of the following (in thousands):


	December 31,
	2022		2021
Supplier deposits	$	39,064	$	6,191
Prepaid expenses and other current assets	23,627		24,620
	$	62,691	$	30,811

Property and equipment, net consisted of the following (in thousands):


	December 31,
	2022		2021
Test equipment	$	44,106	$	39,476
Computer equipment	13,396		11,156
Software	10,389		9,013
Leasehold improvements	1,730		1,351
Furniture and fixtures	1,153		1,812
	70,774		62,808
Accumulated depreciation and amortization	(44,940)		(41,025)
	$	25,834	$	21,783

Depreciation and amortization expenses were $14.3 million, $15.0 million and $13.7 million for the years ended December 31, 2022, 2021 and 2020, respectively.

Other long-term assets consisted of the following (in thousands):


	December 31,
	2022		2021
Intangible asset	$	4,253	$	6,885
Other long-term assets	14,889		6,800
	$	19,142	$	13,685

Intangible Asset Acquisition

In March 2018, and as amended in December 2020, the Company entered into an agreement with a vendor to develop a certain software product and related enhancements pursuant to which the Company is obligated to make revenue-share payments under the program, subject to aggregate fixed revenue-share payments of $15.8 million. The payments are based on a revenue-share rate applied to revenue from the developed-product and the corresponding hardware sales through March 2024. If the minimum revenue-share payments are not achieved by the end of that period, a true-up payment will be due. As of December 31, 2022, the liability, including accrued interest, was $11.4 million, of which $7.2 million is included in “Accrued liabilities” and $4.2 million in “Other long-term liabilities” in the accompanying Consolidated Balance Sheet. As of December 31, 2021, the liability, including accrued interest, was $13.2 million, of which $4.7 million was included in “Accrued liabilities” and $8.5 million in other “Other long-term liabilities.”

Accrued liabilities consisted of the following (in thousands):


	December 31,
	2022		2021
Compensation and related benefits	$	27,813	$	23,165
Component inventory held by suppliers	10,280		7,611
Professional and consulting fees	7,307		4,819
Current portion of revenue-share payments	7,210		4,731
Current portion of warranty and retrofit	6,377		7,076
Customer advances or rebates	5,653		4,742
Taxes payable	4,581		4,251
Operating leases	3,949		3,596
Freight	3,649		3,997
Business events	3,167		—
Product returns	2,961		1,836
Other	7,527		5,773
	$	90,474	$	71,597

Changes in the Company’s accrued warranty and retrofit liability were as follows (in thousands):


	Years Ended December 31,
	2022		2021		2020
Balance at beginning of year	$	9,594	$	9,208	$	7,294
Provision for warranty and retrofit charged to cost of revenue	1,315		3,370		5,888
Utilization of reserve	(2,523)		(2,984)		(3,974)

Balance at end of year	$	8,386	$	9,594	$	9,208

Accrued Restructuring Charges

The Company initiated a restructuring plan in 2020 to accelerate the Company’s platform future and to align with a work-from-anywhere culture. The Company incurred restructuring charges of approximately $6.3 million, consisting of facilities-related charges and severance and other termination related benefits for the year ended December 31, 2020.

In the fourth quarter of 2021, as a result of subleasing the abandoned portion of the Company’s San Jose headquarters, the Company reversed $0.8 million in facilities-related charges due to the expected recovery of accrued common areas maintenance fees.

As of December 31, 2022, the Company had no accrued restructuring charges in the accompanying Consolidated Balance Sheet.