BALANCE SHEET COMPONENTS

3 Months Ended

Mar. 31, 2023

BALANCE SHEET COMPONENTS

BALANCE SHEET COMPONENTS

4. BALANCE SHEET COMPONENTS

Accounts receivable

Accounts receivable include amounts that are unbilled at the end of the period that are expected to be billed and collected within a 12-month period. Unbilled accounts receivable, included in accounts receivable, totaled $16.1 million and $13.5 million as of March 31, 2023, and December 31, 2022, respectively. Unbilled accounts receivable that are not expected to be billed and collected during the succeeding 12-month period is recorded in other non-current assets and totaled $0.7 million and $0.8 million as of March 31, 2023, and December 31, 2022, respectively.

The Company performs ongoing credit evaluations of its customers’ financial condition. An allowance for credit losses is maintained for probable credit losses based upon the Company’s assessment of the expected collectability of the accounts receivable. The allowance for credit losses is reviewed on a quarterly basis to assess the adequacy of the allowance.

Property and equipment

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

	March 31,		December 31,
	2023		2022
Computer equipment	$	11,930	$	11,853
Software		5,407		5,395
Furniture, fixtures, and equipment		2,488		2,484
Leasehold improvements		6,469		6,467
Laboratory and other equipment		4,494		4,431
Test equipment		28,403		28,403
Property and equipment in progress:
DFI™ system assets		23,596		22,231
CV® system and other assets		6,447		5,105
		89,234		86,369
Less: Accumulated depreciation and amortization		(47,511)		(46,195)
Total	$	41,723	$	40,174

Test equipment mainly includes DFI™ system and CV^® system assets at customer sites that are contributing to revenue. Property and equipment in progress represent the development or construction of property and equipment that have not yet been placed in service for the Company’s intended use and are not depreciated. 

Depreciation and amortization expense was $1.3 million and $1.4 million during the three months ended March 31, 2023 and 2022, respectively.

Goodwill and Intangible Assets, Net

As of March 31, 2023, and December 31, 2022, the carrying amount of goodwill was $14.1 million.

Intangible assets, net, consisted of the following (in thousands):

		March 31, 2023						December 31, 2022
	Amortization	Gross				Net		Gross				Net
	Period	Carrying		Accumulated		Carrying		Carrying		Accumulated		Carrying
	(Years)	Amount		Amortization		Amount		Amount		Amortization		Amount
Acquired identifiable intangibles:
Customer relationships	1-10	$	9,407	$	(6,845)	$	2,562	$	9,407	$	(6,684)	$	2,723
Developed technology	4-9		33,635		(20,244)		13,391		33,635		(19,647)		13,988
Tradename and trademarks	2-10		1,598		(945)		653		1,598		(918)		680
Patent	6-10		2,100		(1,717)		383		2,100		(1,696)		404
Noncompetition agreements	3		848		(660)		188		848		(588)		260
Total		$	47,588	$	(30,411)	$	17,177	$	47,588	$	(29,533)	$	18,055

The weighted average amortization period for acquired identifiable intangible assets was 5.7 years as of March 31, 2023. The following table summarizes intangible assets amortization expense in the accompanying condensed consolidated statements of comprehensive income (loss) (in thousands):

	Three Months Ended March 31,
	2023		2022
Amortization of acquired technology included under Costs of Revenues	$	553	$	553
Amortization of acquired intangible assets presented separately under Costs and Expenses		325		314
Total amortization of acquired intangible assets	$	878	$	867

The Company expects annual amortization of acquired identifiable intangible assets to be as follows (in thousands):

Year Ending December 31,	Amount
2023 (remaining nine months)	$	2,613
2024		3,093
2025		2,928
2026		2,759
2027		2,606
2028 and thereafter		3,178
Total future amortization expense	$	17,177

There were no impairment charges for goodwill and intangible assets during the three months ended March 31, 2023 and 2022.