Balance Sheet Components

6 Months Ended

Jun. 30, 2023

Balance Sheet Related Disclosures [Abstract]

Balance Sheet Components

3. Balance Sheet Components

Inventory

Inventory consisted of the following:

	June 30,		December 31,
	2023		2022
	(in thousands)
Raw materials	$	7,589	$	9,269
Work in process		143		427
Finished goods		5,429		5,766
Total inventory	$	13,161	$	15,462

As of June 30, 2023 and December 31, 2022, the balance of the reserve of excess and obsolete inventory was $2.8 million and $0.5 million, respectively. During the three months ended June 30, 2023, the Company recorded a reserve for excess and obsolete inventory of $1.7 million related to reduced sales volumes of legacy GentleWave Console ("Gen3"). During the same period, the Company also recorded a charge of $1.2 million related to phasing out legacy procedure instruments, the molar and anterior pre-molar as the Company moves to the CleanFlow procedure instruments, of which $0.6 million was due to excess and obsolete inventory.

Intangible assets, net

Intangible assets as of June 30, 2023 and December 31, 2022 consisted of the following:

	June 30, 2023
	Weighted Average Amortization Period	Gross		Accumulated Amortization		Net
	(in years)	(in thousands)
Developed Technology (5 - 10 years)	4.0	$	2,445	$	1,301	$	1,144
Customer relationships (7 years)	2.8		1,910		1,285		625
Tradenames (10 years)	0.8		360		169		191
Total intangible assets	7.6	$	4,715	$	2,755	$	1,960

	December 31, 2022
	Weighted Average Amortization Period	Gross		Accumulated Amortization		Net
	(in years)	(in thousands)
Developed Technology (5 - 10 years)	4.0	$	2,445	$	1,123	$	1,322
Customer relationships (7 years)	2.8		1,910		1,148		762
Tradenames (10 years)	0.8		360		152		208
Total intangible assets	7.6	$	4,715	$	2,423	$	2,292

Amortization expense was $0.1 million, which was mostly recorded in selling, general and administrative expenses in the accompanying unaudited condensed consolidated statements of operations and comprehensive loss for each of the three months ended June 30, 2023 and 2022.

Amortization expense was $0.3 million for each of the six months ended June 30, 2023 and 2022, with approximately $0.1 million amortization expense recorded in cost of sales and $0.2 million recorded in selling, general and administrative expenses in the accompanying unaudited condensed consolidated statements of operations and comprehensive loss.

The following table presents estimated future annual amortization expense related to intangible assets, net as of June 30, 2023:

	Future Intangible Asset Amortization Expenses
	(in thousands)
2023 (remaining six months)	$	286
2024		442
2025		386
2026		169
2027 and thereafter		677
Total future amortization expense	$	1,960