Balance Sheet Components

6 Months Ended

Jun. 30, 2024

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Cash and Cash Equivalents

The Company’s cash and cash equivalents consist of the following (in thousands):


	June 30,		December 31,
	2024		2023
Cash	$	57,273	$	58,418
Cash equivalents:
Money market funds	6,191		25,129
Total cash and cash equivalents	$	63,464	$	83,547

Inventory

Inventory consists of the following (in thousands):


	June 30,		December 31,
	2024		2023
Raw materials	$	3,032	$	2,924
Work in process	387		427
Finished goods	15,861		15,972
Total inventory	$	19,280	$	19,323
Reported as:
Inventory	$	16,980	$	16,743
Long-term inventory	2,300		2,580
Total inventory	$	19,280	$	19,323

Prepaid Expenses and Other Current Assets

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


	June 30,		December 31,
	2024		2023
Prepaid expenses	$	1,996	$	1,910
Prepaid insurance	424		906
VAT and other receivable	700		915
Other current assets	177		504
Total prepaid expenses and other current assets	$	3,297	$	4,235

Capitalized Implementation Costs of a Hosting Arrangement

The Company has several software systems that are cloud-based hosting arrangements with service contracts. The Company accounts for costs incurred in connection with the implementation of these various software systems under ASU 2018-15, Intangibles—Goodwill and Other—Internal Use Software (Subtopic 350–40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That is a Service Contract. The Company expenses all costs (internal and external) that are incurred in the planning and post-implementation operation stages. As of June 30, 2024 and December 31, 2023, the Company has capitalized less than $0.1 million and $0.1 million in implementation costs, net of amortization, respectively. The capitalized costs are amortized on a straight-line basis over the non-cancelable contract terms, which are generally three years. As of June 30, 2024, the capitalized costs of less than $0.1 million were included in prepaid expenses and other current assets. Amortization expense, which was included in selling, general and administrative expenses, was less than $0.1 million and $0.1 million for the three months ended June 30, 2024 and June 30, 2023, respectively, and $0.1 million and $0.2 million for the six months ended June 30, 2024 and June 30, 2023, respectively.

Property and Equipment, Net

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


	June 30,		December 31,
	2024		2023
Machinery and equipment	$	2,352	$	2,271
Computer equipment and software	2,476		1,872
Furniture and fixtures	295		264
Leasehold improvements	2,277		2,277
Construction in progress	1,002		2,199
Total	8,402		8,883
Less: accumulated depreciation	(5,572)		(4,855)
Property and equipment, net	$	2,830	$	4,028

In the second quarter of 2024, the Company recorded a non-cash impairment charge of $1.7 million related to certain previously capitalized software development costs that reduced the carrying value of those assets to zero. The impairment charge was recorded in research and development expenses on the Company’s condensed consolidated statements of operations and comprehensive loss. This impairment charge was primarily driven by the Company’s strategic decision to adopt a more cost-efficient solution in place of completing the development of the internally developed software.

Depreciation expense was $0.3 million for each of the three months ended June 30, 2024 and June 30, 2023. Depreciation expense was $0.7 million for each of the six months ended June 30, 2024 and June 30, 2023.

Goodwill

Goodwill was $2.3 million as of June 30, 2024 and December 31, 2023. There were no acquisitions or dispositions of goodwill in the six months ended June 30, 2024 and June 30, 2023. The Company assesses goodwill for impairment annually, or more frequently, when events or changes in circumstances indicate there may be impairment. Through June 30, 2024, there have been no events or changes in circumstances that indicated that the carrying value of goodwill may not be recoverable. As a result, no impairment charge was recorded during the six months ended June 30, 2024.

Intangible Assets

Amortization expense relating to intangibles was $0 and less than $0.1 million during each of the three months ended June 30, 2024 and June 30, 2023, respectively. Amortization expense relating to intangibles was less than $0.1 million and $0.1 million during each of the six months ended June 30, 2024 and June 30, 2023, respectively. The intangible assets were fully amortized as of June 30, 2024.

Intangible assets as of December 31, 2023 consist of the following (in thousands):


	December 31, 2023
	Gross Carrying Value		Accumulated Amortization		Net Carrying Value
Developed technology	$	1,658	$	(1,630)	$	28
Trademarks	191		(188)		3
Total intangible assets	$	1,849	$	(1,818)	$	31

Accrued Liabilities

Accrued liabilities consist of the following (in thousands):


	June 30,		December 31,
	2024		2023
Accrued employee bonuses and commissions	$	3,682	$	7,875
Accrued vacation	2,579		2,400
Other accrued personnel related expenses	2,298		2,859
Accrued professional fees	2,003		1,705
Sales taxes, franchise tax and VAT	772		763
Other	449		632
Total accrued liabilities	$	11,783	$	16,234