Balance Sheet Components

12 Months Ended

Dec. 31, 2023

Balance Sheet Related Disclosures [Abstract]

3. Balance Sheet Components

Inventory

Inventory as of December 31, 2023 and 2022 consisted of the following:


	2023		2022
	(in thousands)
Raw materials	$	6,450	$	9,269
Work in process		278		427
Finished goods		4,346		5,766
Total inventory	$	11,074	$	15,462

During the year ended December 31, 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. The Company recorded a reserve for excess and obsolete inventory of $0.8 million and $0.5 million as of December 31, 2023 and 2022, respectively.

Property and equipment, net

Property and equipment, net as of December 31, 2023 and 2022 consisted of the following:


	2023			2022
	(in thousands)
Laboratory and warehouse equipment and tooling	$	469		$	6,837
Computer equipment and software		30			1,543
Office furniture and fixtures		314			1,955
Leasehold improvements		19			2,983
Automobiles		—			29
Construction in progress		—		130
		832			13,477
Less: accumulated depreciation		(168	)		(10,617	)
Property and equipment, net	$	664		$	2,860

During 2023, the Company recorded an impairment charge of $2.6 million to property and equipment, of which, $1.6 million was recorded in cost of sales and the remainder was recorded in operating expenses on the consolidated statements of operations and comprehensive loss. During 2022, the Company did not record any impairment charges related to property and equipment.

Depreciation expense was $1.1 million for each of the years ended December 31, 2023 and 2022. During 2023, approximately $0.6 million depreciation expense was recorded in cost of sales, $0.4 million was recorded in selling, general and administrative expenses, and $0.1 million was recorded in research and development expenses in the consolidated statements of operations and comprehensive loss. During 2022, approximately $0.5 million depreciation expense was recorded in cost of sales, $0.4 million was recorded in selling, general and administrative expenses, and $0.2 million was recorded in research and development expenses in the consolidated statements of operations and comprehensive loss.

Intangible assets, net

Intangible assets as of December 31, consisted of the following:


	2023
	Weighted Average Amortization Period	Gross		Accumulated Amortization		Net
	(in years)	(in thousands)
Developed Technology (5 years)	1.6	$	1,110	$	1,110		—
Customer relationships (7 years)	4.0		1,910		1,421		489
Tradenames (10 years)	1.1		360		188		172
Total intangible assets	6.7	$	3,380	$	2,719	$	661


	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

During 2023, an impairment charge of $1.0 million to developed technology was recorded in operating expenses on the consolidated statements of operations and comprehensive loss. See Note 2 Summary of Accounting Policies. During 2022, the Company did not record any impairment charges related to intangible assets.

For each of the years ended December 31, 2023 and 2022, amortization expense was $0.6 million, with approximately $0.2 million amortization expense recorded in cost of sales and $0.4 million recorded in selling, general, and administrative expenses as recorded in the accompanying consolidated statements of operations and comprehensive loss.

The following table presents estimated future annual amortization expense related to intangible assets, net as of December 31, 2023:


	Future Intangible Asset Amortization Expenses
	(in thousands)
2024	$	309
2025		252
2026		36
2027		36
2028 and thereafter		28
Total future amortization expense	$	661

Accrued Expenses

Accrued expenses as of December 31, 2023 and 2022 consisted of the following:


	2023		2022
	(in thousands)
Vendor invoices	$	1,711	$	2,779
Other accrued expenses		1,555		2,578
Total accrued expenses	$	3,266	$	5,357

Other Current Liabilities

Other current liabilities as of December 31, 2023 and 2022 consisted of the following:


	2023		2022
	(in thousands)
Finance lease liability	$	39	$	34
Warranty liability		1,187		1,340
Other current liabilities		618		817
Total other current liabilities	$	1,844	$	2,191

Other Liabilities

Other liabilities as of December 31, 2023 and 2022 consisted of the following:


	2023		2022
	(in thousands)
Non-current finance lease liability	$	145	$	183
Other non-current liabilities		385		590
Total other liabilities	$	530	$	773