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Financial Statement Components | 6 Months Ended
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Jun. 30, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract] |
Financial Statement Components | Financial Statement Components Cash and Cash Equivalents Cash and cash equivalents consisted of the following (in thousands):
| June 30, 2023 |  | December 31, 2022
Cash | $ | 33,598 |  |  | $ | 27,496 |
Money market funds | 55,517 |  |  | 42,056 |
Total cash and cash equivalents | $ | 89,115 |  |  | $ | 69,552 |
Inventory Inventory comprised of the following (in thousands):
| June 30, 2023 |  | December 31, 2022
Raw materials | $ | 11,461 |  |  | $ | 3,614 |
Work-in-process | 3,190 |  |  | 2,329 |
Finished goods | 5,666 |  |  | 2,849 |
Total inventories, net | $ | 20,317 |  |  | $ | 8,792 |
The Company’s inventory write-offs and write-downs (primarily due to obsolescence, lower of cost or market assessment, and other adjustments) were $8.0 million and $13.4 million for the three and six months ended June 30, 2023 and $3.4 million and $4.8 million for the three and six months ended June 30, 2022, respectively. Prepaid Expenses and Other Current Assets Prepaid expenses and other current assets consisted of the following (in thousands):
| June 30, 2023 |  | December 31, 2022
Prepaid expenses | $ | 10,942 |  |  | $ | 15,653 |
Contract assets | 8,038 |  |  | 15,395 |
Advance payments to vendors | 7,031 |  |  | 7,919 |
Other receivables | 3,938 |  |  | 5,236 |
Total prepaid expenses and other current assets | $ | 29,949 |  |  | $ | 44,203 |
Property and Equipment Property and equipment consisted of the following (in thousands):
| June 30, 2023 |  | December 31, 2022
Machinery and equipment | $ | 55,423 |  |  | $ | 14,047 |
Computer hardware and software | 8,431 |  |  | 6,797 |
Land | 1,001 |  |  | 1,001 |
Leasehold improvements | 19,139 |  |  | 885 |
Vehicles, including demonstration fleet | 3,353 |  |  | 3,222 |
Furniture and fixtures | 818 |  |  | 818 |
Construction in progress | 6,508 |  |  | 13,642 |
Total property and equipment | 94,673 |  |  | 40,412 |
Accumulated depreciation and amortization | (15,529) |  |  | (10,152) |
Total property and equipment, net | $ | 79,144 |  |  | $ | 30,260 |
Property and equipment capitalized under finance lease (capital lease prior to adoption of ASC 842) were not material. Depreciation and amortization expense associated with property and equipment was $3.5 million and $5.4 million for the three and six months ended June 30, 2023 and $0.9 million and $1.7 million for the three and six months ended June 30, 2022, respectively. The Company continually evaluates opportunities for optimizing its manufacturing processes and product design. During the second quarter of 2023, the Company’s management began evaluating certain options for changing sourcing of certain sub-assemblies and components which may help reduce future per unit sensor manufacturing costs. If these options are executed, certain property, plant & equipment items presently owned by the Company may no longer be needed for their original intended use. The impacted asset group was determined to be recoverable as of June 30, 2023. Given uncertainty with these strategic options as of June 30, 2023, the estimated useful lives of said assets were not revised during the second quarter of 2023. Subsequent to June 30, 2023, the Company’s management finalized and committed to a plan to proceed with change in its sourcing strategy. The Company is in the process of re-evaluating the useful lives of certain long-lived assets within the impacted asset group. Finalization of this analysis may result in the Company needing to record depreciation for the impacted assets over an accelerated period. Intangible Assets The following table summarizes the activity in the Company’s intangible assets (in thousands):
| June 30, 2023 |  | December 31, 2022 |  |
Beginning of the period | $ | 22,077 |  |  | $ | 2,424 |  |  |
Additions | 8,240 |  |  | 21,890 |  |  |
Amortization expense | (2,160) |  |  | (2,237) |  |  |
End of the period | $ | 28,157 |  |  | $ | 22,077 |  |  |
The components of intangible assets were as follows (in thousands):
| June 30, 2023 |  | December 31, 2022
| Gross Carrying Amount |  | Accumulated Amortization |  | Net Carrying Amount |  | Weighted Average Remaining Period (Years) |  | Gross Carrying Amount |  | Accumulated Amortization |  | Net Carrying Amount |  | Weighted Average Remaining Period (Years)
Customer relationships | $ | 3,730 |  |  | $ | (1,071) |  |  | $ | 2,659 |  |  | 4.0 |  | $ | 3,730 |  |  | $ | (664) |  |  | $ | 3,066 |  |  | 4.4
Customer backlog | 650 |  |  | (488) |  |  | 162 |  |  | 0.4 |  | 650 |  |  | (292) |  |  | 358 |  |  | 0.9
Tradename | 620 |  |  | (276) |  |  | 344 |  |  | 2.8 |  | 620 |  |  | (214) |  |  | 406 |  |  | 3.3
Assembled workforce | 130 |  |  | (130) |  |  | — |  |  | — |  | 130 |  |  | (130) |  |  | — |  |  | —
Developed technology | 20,150 |  |  | (2,658) |  |  | 17,492 |  |  | 6.1 |  | 11,910 |  |  | (1,163) |  |  | 10,747 |  |  | 7.5
IPR&D | 7,500 |  |  | — |  |  | 7,500 |  |  | — |  | 7,500 |  |  | — |  |  | 7,500 |  |  | —
Total intangible assets | $ | 32,780 |  |  | $ | (4,623) |  |  | $ | 28,157 |  |  | 5.7 |  | $ | 24,540 |  |  | $ | (2,463) |  |  | $ | 22,077 |  |  | 6.6
Amortization expense related to intangible assets was $1.1 million and $2.2 million for the three and six months ended June 30, 2023 and $0.8 million and $0.9 million for the three and six months ended June 30, 2022, respectively. As of June 30, 2023, the expected future amortization expense for intangible assets was as follows (in thousands):
Period |  | Expected Future Amortization Expense
2023 (remaining six months) |  | $ | 2,163 |
2024 |  | 4,001 |
2025 |  | 4,001 |
2026 |  | 3,354 |
2027 |  | 3,138 |
Thereafter |  | 4,000 |
IPR&D |  | 7,500 |
Total |  | $ | 28,157 |
Goodwill The carrying amount of goodwill allocated to the Company’s reportable segments was as follows (in thousands):
| Autonomy Solutions |  | ATS |  | Total
Balance as of December 31, 2022 | $ | 687 |  |  | $ | 18,129 |  |  | $ | 18,816 |
Goodwill related to acquisition of Seagate’s lidar business (see Note 3) | 1,063 |  |  | — |  |  | 1,063 |
Balance as of June 30, 2023 | $ | 1,750 |  |  | $ | 18,129 |  |  | $ | 19,879 |
Other Non-Current Assets Other non-current assets consisted of the following (in thousands):
| June 30, 2023 |  | December 31, 2022
Security deposits | $ | 2,386 |  |  | $ | 5,495 |
Non-marketable equity investment | 4,000 |  |  | 4,000 |
Advance payment for capital projects | — |  |  | 27,683 |
Contract assets | 7,513 |  |  | 2,575 |
Other non-current assets | 2,403 |  |  | 591 |
Total other non-current assets | $ | 16,302 |  |  | $ | 40,344 |
Accrued and Other Current Liabilities Accrued and other current liabilities consisted of the following (in thousands):
| June 30, 2023 |  | December 31, 2022
Accrued compensation and benefits | $ | 26,847 |  |  | $ | 16,682 |
Accrued expenses | 21,853 |  |  | 22,358 |
Contract losses | 7,580 |  |  | 7,526 |
Warranty reserves | 4,734 |  |  | 3,584 |
Contract liabilities | 4,143 |  |  | 1,993 |
Accrued interest payable and other liabilities | 882 |  |  | 819 |
Total accrued and other current liabilities | $ | 66,039 |  |  | $ | 52,962 |
During the three and six months ended June 30, 2023, the Company recorded $4.8 million and $7.6 million, respectively, and $5.1 million and $5.3 million for the three and six months ended June 30, 2022, respectively, in cost of sales (services) estimated losses expected to be incurred on NRE projects with certain customers. The estimated contract losses recorded were primarily a result of (a) changes in estimates related to costs expected to be incurred for contractual milestones based on actual experience on similar projects and (b) changes in scope of project deliverables agreed upon with the respective customers during the year.

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- Definition The entire disclosure for supplemental balance sheet disclosures, including descriptions and amounts for assets, liabilities, and equity. + References Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 210 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//210/tableOfContent + Details
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