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Balance Sheet Components

6 Months Ended

Jun. 30, 2025

4. Balance Sheet Components

Inventory

Inventory consisted of the following (in thousands):


	June 30,		December 31,
	2025		2024
Raw materials	$	232	$	238
Work-in-process		9,821		7,510
Finished goods		1,253		1,362
Total inventory	$	11,306	$	9,110

Property and Equipment, Net

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


	June 30,		December 31,
	2025		2024
Manufacturing equipment	$	15,170	$	14,199
Computer and network equipment		583		602
Furniture and fixtures		113		113
Construction in Progress		319		—
Leasehold improvements		1,476		1,476
Total property and equipment, gross		17,661		16,390
Less: accumulated depreciation		(13,817)		(13,170)
Total property and equipment, net	$	3,844	$	3,220

For the three months ended June 30, 2025 and 2024, the depreciation expense was $0.4 million and $0.4 million, respectively. For the six months ended June 30, 2025 and 2024, depreciation expense was $0.7 million and $0.8 million, respectively.

Intangible Assets, Net

The gross carrying amounts and accumulated amortization of intangible assets are as follows at the dates indicated (in thousands):


	June 30, 2025
	Weighted-
	Average					Net
	Life		Gross Carrying	Accumulated		Carrying
	(in years)		Amount	Amortization		Amount
Internal-use software	1.5	$	4,409	$	(1,858)	$	2,551
Total intangible assets		$	4,409	$	(1,858)	$	2,551


	December 31, 2024
	Weighted-
	Average					Net
	Life		Gross Carrying	Accumulated		Carrying
	(in years)		Amount	Amortization		Amount
Internal-use software	2.0	$	4,389	$	(973)	$	3,416
Total intangible assets		$	4,389	$	(973)	$	3,416

For the three months ended June 30, 2025 and 2024, the amortization expense for the intangible assets was $0.4 million and zero, respectively. For the six months ended June 30, 2025 and 2024, the amortization expense for the intangible assets was $0.9 million and zero, respectively.

Accrued Liabilities

Accrued liabilities consisted of the following (in thousands):


	June 30,		December 31,
	2025		2024
Payroll-related expenses	$	1,578	$	1,606
Inventory		199		157
Other		476		686
Total accrued liabilities	$	2,253	$	2,449

Deferred Revenue

In March 2025, the Company renewed a contractual arrangement with a customer for the development of a strategic radiation hardened (“RAD-Hard”) field programmable gate array product. The total consideration in the arrangement is $1.2 million. The Company is recognizing revenue related to the performance obligation over time using the input method based on costs incurred to date relative to the total expected costs of the contract and began recognizing revenue in the first quarter of 2025. As of June 30, 2025, the Company has billed $0.7 million for the performance under the agreement and has recognized $0.6 million and $0.7 million in revenue for the three and six months ended June 30, 2025, with an immaterial amount in contract assets on the condensed balance sheets.

The Company evaluated the contractual arrangement and assessed the promises made to the customer to determine whether they represented distinct performance obligations. The primary deliverables consist of development services, which are interdependent and must be provided together to deliver the intended value to the customer. Accordingly, the Company concluded that the performance obligations are not distinct within the context of the contract and should be accounted for as a single combined performance obligation.

In January 2025, the Company executed a contractual arrangement with a customer to provide engineering services supporting the customer’s development that uses capabilities of MRAM for in-memory computing. The total consideration in the arrangement is $4.1 million. The Company is recognizing revenue related to the performance obligation over time using the input method based on costs incurred to date relative to the total expected costs of the contract and began recognizing revenue in the first quarter of 2025. As of June 30, 2025, the Company has billed $2.2 million for the performance under the agreement and has recognized $1.0 million and $2.2 million in revenue for the three and six months ended June 30, 2025, with no amounts in deferred revenue.

The Company concluded that this contractual arrangement represents one arrangement and assessed the nature of the promises made to the customer to determine whether the performance obligations were distinct. The Company determined that the engineering services are not separately identifiable from the promised development services, as the engineering services are highly interrelated with, and dependent upon, the overall development services over the life of the contract. Accordingly, the Company concluded that the engineering services are not distinct within the context of the contract and, therefore, should be combined with the other promised services into a single performance obligation.